What to Know About the Upcoming BOIR Federal Filing Deadline in California
On January 1st, 2021, the Corporate Transparency Act was signed into law. The law official took effect on January 1st, 2024. Notably, it requires existing entities—companies that existed prior to 2024—to file their initial BOIR (Beneficial Ownership Information Report) by January 1st, 2025. An important deadline is approaching. It is crucial that business owners in California are prepared. In this article, our California business lawyer provides a comprehensive overview of the key things to know about the upcoming BOIR federal filing deadlines.
What is a BOIR Filing?
As explained by the Financial Crimes Enforcement Network (FinCEN), a Beneficial Ownership Information Report (BOIR) is a filing mandated by new federal law (the Corporate Transparency Act.) It requires certain corporations, limited liability companies (LLCs), and similar entities to disclose information about individuals who directly or indirectly own or control them. The report includes details such as the beneficial owner’s name, date of birth, address, and identification number from an acceptable document like a driver’s license or passport. The initiative aims to enhance transparency and combat illicit financial activities by preventing the misuse of shell companies.
Access to the form: Beneficial Ownership Information Report (BOIR)
Who Needs to File and Why?
The new rule requires entities that file articles of incorporation or articles of organization—or the equivalent—with any state secretary of state to register beneficial ownership information with FinCEN. A “beneficial owner” is defined as anyone who owns 25 percent or more of the company or has significant control as a decision-maker. Documentation needs vary:
- U.S. citizens/green card holders: State-issued driver’s license or U.S. passport.
- Foreign citizens: Valid documentation from their home country.
- Entity owners: Appropriate ownership documentation for each company.
Know the Filing Deadlines and the Penalties
The deadlines for compliance depend on when your entity was formed:
- Entities created before December 31, 2023: Must file by December 31, 2024.
- Entities formed on or after January 1, 2024: Must file within 90 days of formation.
- Entities formed on or after January 1, 2025: Must file within 30 days of formation.
What are the penalties for a BOIR violation? Noncompliance carries steep financial sanctions: $500 per day. You can avoid these fines with a timely, accurate filing.
We Handle BOIR Compliance for Companies in California
Navigating these requirements can be complex—especially since BOIR requirements are new to business owners. You do not have to handle the filing on your own. Lynnette Ariathurai can help. Attorney Ariathurai will ensure your compliance with federal law. Among other things, this includes determining whether your entity qualifies for an exemption, clarifying beneficial ownership criteria, and submitting an accurate, properly supported BOIR filing for your business entity.
Get Help From Our California Business Law Attorney Today
Lynnette Ariathurai is a top business attorney. If you have any questions about the BOIR federal filing requirements, we are here to help. Call us now or contact us online for a confidential consultation. With an office in Fremont, our firm represents businesses throughout the Bay Area.
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