FREQUENTLY ASKED QUESTIONS

The Corporate Transparency Act (CTA) is a federal law designed to combat financial crimes such as money laundering, tax evasion, and terrorism financing by increasing transparency in business ownership. The CTA requires certain private companies to report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).By implementing these requirements, the CTA aims to create a standardized system for identifying the true owners of entities operating in the U.S., promoting accountability while safeguarding sensitive information.

The CTA mandates that certain businesses report their beneficial owners to FinCEN. This requirement enhances transparency and helps prevent financial crimes.

A beneficial owner is any individual who, directly or indirectly:

• Exercises substantial control over a reporting company.

• Owns or controls at least 25% of the ownership interests of the company.

Substantial control refers to the ability of an individual to influence or direct significant decisions within a company. This can include:

• Serving as a senior officer of the reporting company.

• Having authority over the appointment or removal of senior officers or a majority of the board of directors.

• Directing, determining, or deciding significant matters affecting the company.

• Exercising any other form of substantial influence over the company’s operations, either directly or indirectly.

Multiple individuals may share substantial control over a reporting company. Ordinary daily managerial decisions are generally not considered substantial control.

Most corporations, limited liability companies (LLCs), and similar entities formed or registered to do business in the U.S. are required to file a BOI report. However, there are 23 types of entities exempt from this requirement. It’s essential to determine if your company qualifies for an exemption.

For each beneficial owner, the following information must be provided:

• Full legal name

• Date of birth

• Residential or business address

• Unique identifying number from an acceptable identification document (e.g., passport or driver’s license)

No, BOI reports are not public. The information you provide in your BOI report is stored securely by FinCEN and is only accessible to authorized government agencies and financial institutions. The purpose of these reports is to combat financial crimes and improve transparency while maintaining the confidentiality of the reported data.

You must update your BOI filing with FinCEN within 30 days of any changes to previously reported information. This includes:

• Changes to beneficial ownership.

• Changes to the ownership structure of the reporting company.

• Corrections to any inaccuracies in previously reported information.

Failing to update your filing promptly can result in civil and criminal penalties.

• Existing Companies (formed before January 1, 2024): Must file their initial BOI report by January 1, 2025.

• New Companies (formed on or after January 1, 2024): Must file their initial BOI report within 90 days of formation.

Failure to file the required BOI report or providing false information can result in:

• Civil penalties: Up to $500 per day.

• Criminal penalties: Fines up to $10,000 and imprisonment for up to two years.

Infinite Filings offers a comprehensive BOI filing service to ensure your business complies with the CTA requirements. Our service includes:

• Expert Guidance: Assistance in gathering and preparing the necessary information.

• Accurate Filing: Submission of your BOI report to FinCEN on your behalf.

• Ongoing Support: Notifications and assistance with any required updates or changes.

To begin, contact our support team at [email protected] or visit our website to learn more about our BOI filing services.

Yes, we prioritize the security and confidentiality of your information. All data is handled in compliance with applicable privacy laws and industry best practices.

For detailed information, refer to the following resources:

• FinCEN Beneficial Ownership Reporting FAQs

• Corporate Transparency Act Overview

• FinCEN Beneficial Ownership Report Form Instructions