If you’re one of many companies due to file their beneficial ownership information (BOI) reports by January 1, 2025, you might be wondering, “When do I really need to start this process?” Similar to other regulatory reporting requirements, it’s always best start data collection and file as soon as possible. Though there have been a few appeals to the ruling, as of now, the timeline has not changed.
However, for businesses with complex scenarios, such as having multiple entities and/or owners, or companies that may need to track down individuals to gather all the necessary information, it might take time and additional preparation to be ready to file by the deadline. Below offers perspective on where you should be now, and where you need to be by the end of the year.
Throughout the past few months, your company should already be actively gathering and reviewing a comprehensive list of what needs to be reported and what research will be necessary on your part. This includes working with your advisers to help you determine which entities/individuals need to file or are excluded and who will be responsible for actually filing the information. If you have any complex situations, you may need to engage your legal adviser to provide you with advice on how best to handle a filing. In addition, depending on your scenario, it could be more efficient for you to file vs. engaging an external party. For companies with multiple entities and/or owners and applicants, using external resources to assist with filing may make sense if you are short on resources.
Below is a sample timeline to help you stay on track for the rest of the year. Please note, this timeline does not apply to entities formed in 2024. Those entities will still need to file within 90 days of formation. Starting in 2025, new entities must file within 30 days of formation. If there are updates to your BOI filing, changes must be submitted within 30 days as well.
| When | What | Who |
|---|---|---|
| July – Aug. | Request FinCEN IDs for each reporting company and beneficial owner. Though not required, a FinCEN ID can make the filing process much smoother. If not using a FinCEN ID, obtain all information needed for filing, including legal address, name, EIN and beneficial owner information (copy of license, address, full name, date of birth, etc.). | This is the reporting company’s responsibility. |
| Sept. – Oct. | Prepare and submit information. Determine which method is best for filing, whether PDF or the online portal, and fill in the proper information needed. | This could be the reporting company, legal adviser or accounting adviser, depending on complexity of the filings. |
| Nov. – Dec. | Monitor for any changes to the BOI data you already reported. If anything changes, you will need to complete and submit an entirely new report within 30 days after the change is made or the error discovered. | Monitoring for any changes to BOI is the reporting company’s responsibility. If the company had a third party file their initial report, it is generally the reporting company’s duty to send any new information to the third party with the directive to file a new BOI report on their behalf and within the timeline. |
Note, some of these steps may take longer than others. The process of identifying who qualifies as a reporting entity, beneficial owner or applicant — and who is exempt — as well as collecting information may take some research. Make your plan early and keep your advisers in the conversation so all information can be submitted by the end of the year!
Contact Jason Jones or a member of your service team to discuss this topic further.
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.