Beneficial Owner Information FAQ

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Frequently Asked Questions

FinCEN prepared the following Frequently Asked Questions (FAQs) in response to inquiries received relating to the Beneficial Ownership Information Reporting Rule.

These FAQs are explanatory only and do not supplement or modify any obligations imposed by statute or regulation. Please refer to the Beneficial Ownership Information Reporting Rule, available at www.fincen.gov/boi, for details on specific provisions. FinCEN expects to publish additional guidance in the future. Questions may be submitted on FinCEN’s Contact web page.

PDF versions of the FAQs in English and other languages are available here.

A. General Questions

1. What is beneficial ownership information?
2. Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?
3. Under the Corporate Transparency Act, who can access beneficial ownership information?
4. How will companies become aware of the BOI reporting requirements?

B. Reporting Process

1. Should my company report beneficial ownership information now?
2. When do I need to report my company’s beneficial ownership information to FinCEN?
3. When will FinCEN accept beneficial ownership information reports?
4. Will there be a fee for submitting a beneficial ownership information report to FinCEN?
5. How will I report my company’s beneficial ownership information?
6. Where can I find the form to report?
7. Is a reporting company required to use an attorney or a certified public accountant (CPA) to submit beneficial ownership information to FinCEN?
8. Who can file a BOI report on behalf of a reporting company, and what information will be collected on filers?

C. Reporting Company

1. What companies will be required to report beneficial ownership information to FinCEN?
2. Are some companies exempt from the reporting requirement?
3. Are certain corporate entities, such as statutory trusts, business trusts, or foundations, reporting companies?
4. Is a trust considered a reporting company if it registers with a court of law for the purpose of establishing the court’s jurisdiction over any disputes involving the trust?
5. Does the activity or revenue of a company determine whether it is a reporting company?
6. Is a sole proprietorship a reporting company?
7. Can a company created or registered in a U.S. territory be considered a reporting company?

D. Beneficial Owner

1. Who is a beneficial owner of a reporting company?
2. What is substantial control?
3. One of the indicators of substantial control is that the individual is an important decision-maker. What are important decisions?
4. What is an ownership interest?
5. Who qualifies for an exception from the beneficial owner definition?
6. Is my accountant or lawyer considered a beneficial owner?
7. What information should a reporting company report about a beneficial owner who holds their ownership interests in the reporting company through multiple exempt entities?
8. Is an unaffiliated company that provides a service to the reporting company by managing its day-to-day operations, but does not make decisions on important matters, a beneficial owner of the reporting company?
9. Is a member of a reporting company’s board of directors always a beneficial owner of the reporting company?
10. Is a reporting company’s designated “partnership representative” or “tax matters partner” a beneficial owner?
11. What should a reporting company report if its ownership is in dispute?
12. Who does a reporting company report as a beneficial owner if a corporate entity owns or controls 25 percent or more of the ownership interests of the reporting company?

E. Company Applicant

1. Who is a company applicant of a reporting company?
2. Which reporting companies are required to report company applicants?
3. Is my accountant or lawyer considered a company applicant?
4. Can a company applicant be removed from a BOI report if the company applicant no longer has a relationship with the reporting company?
5. The company applicants of a reporting company include the individual “primarily responsible for directing the filing of the creation or registration document.” What makes an individual “primarily responsible” for directing such a filing?
6. Is a third-party courier or delivery service employee who only delivers documents that create or register a reporting company a company applicant?
7. If an individual used an automated incorporation service, such as through a website or online platform, to file the creation or registration document for a reporting company, who is the company applicant?

F. Reporting Requirements

1. Will a reporting company need to report any other information in addition to information about its beneficial owners?
2. What information will a reporting company have to report about itself?
3. What information will a reporting company have to report about its beneficial owners?
4. What information will a reporting company have to report about its company applicants?
5. What are some acceptable forms of identification that will meet the reporting requirement?
6. Is there a requirement to annually report beneficial ownership information?
7. Does a reporting company have to report information about its parent or subsidiary companies?
8. Can a reporting company report a P.O. box as its current address?
9. Have I met FinCEN’s BOI reporting obligation if I filed a form or report that provides beneficial ownership information to a state office, a financial institution, or the IRS?
10. If a beneficial owner or company applicant’s acceptable identification document does not include a photograph for religious reasons, will FinCEN accept the identification document without the photograph?
11. What residential address should be reported if a reporting company is required to a report individual’s residential address, but that an individual does not have a permanent residential residence?

G. Initial Report

1. When do I have to file an initial beneficial ownership information report with FinCEN?
2. Can a parent company file a single BOI report on behalf of its group of companies?
3. How can I obtain a Taxpayer Identification Number (TIN) for a new company quickly so that I can file an initial beneficial ownership information report on time?
4. Should an initial BOI report include historical beneficial owners of a reporting company, or only beneficial owners as of the time of filing?
5. How does a company created or registered after January 1, 2024, determine its date of creation or registration?

H. Updated Report

1. What should I do if previously reported information changes?
2. What are some likely triggers for needing to update a beneficial ownership information report?
3. Is an updated BOI report required when the type of ownership interest a beneficial owner has in a reporting company changes?
4. If a reporting company needs to update one piece of information on a BOI report, such as its legal name, does the reporting company have to fill out an entire new BOI report?
5. Can a filer submit a late updated BOI report?
6. If a reporting company last filed a “newly exempt entity” BOI report but subsequently loses its exempt status, what should it do?

I. Corrected Report

1. What should I do if I learn of an inaccuracy in a report?

J. Newly Exempt Entity Report

1. What should a reporting company do if it becomes exempt after already filing a report?

K. Compliance/Enforcement

1. What happens if a reporting company does not report beneficial ownership information to FinCEN or fails to update or correct the information within the required timeframe?
2. What penalties do individuals face for violating BOI reporting requirements?
3. Who can be held liable for violating BOI reporting requirements?
4. Is a reporting company responsible for ensuring the accuracy of the information that it reports to FinCEN, even if the reporting company obtains that information from another party?
5. What should a reporting company do if a beneficial owner or company applicant withholds information?

L. Reporting Company Exemptions

1. What are the criteria for the tax-exempt entity exemption from the beneficial ownership information reporting requirement?
2. What are the criteria for the inactive entity exemption from the beneficial ownership information reporting requirement?
3. What are the criteria for the subsidiary exemption from the beneficial ownership information reporting requirement?
4. If I own a group of related companies, can I consolidate employees across those companies to meet the criteria of a large operating company exemption from the reporting company definition?
5. How does a company report to FinCEN that the company is exempt?
6. Does a subsidiary whose ownership interests are partially controlled by an exempt entity qualify for the subsidiary exemption?

M. FinCEN Identifier

1. What is a FinCEN identifier?
2. How can I use a FinCEN identifier?
3. How do I request a FinCEN identifier?
4. Are FinCEN identifiers required?
5. Do I need to update or correct the information I submitted to obtain a FinCEN identifier?
6. Is there any way to deactivate an individual’s FinCEN identifier that is no longer in use so that the individual no longer has to update the information associated with it?
7. Who can request a FinCEN identifier on behalf of an individual?

N. Third-Party Service Providers

1. Can a third-party service provider assist reporting companies by submitting required information to FinCEN on their behalf?
2. What type of evidence will a reporting company receive as confirmation that its BOI report has been successfully filed by a third-party service provider?
3. Will a third-party service provider be able to submit multiple BOI reports to FinCEN at the same time?