The Beneficial Ownership Information (BOI) reporting requirements are aimed at combating illicit activities like money laundering and fraud. Effective January 1, 2024, most small entities (ie- corporations and LLCs) must file a report with the Financial Crimes Enforcement Network (FinCEN).

It is easy to assume that this only applies to active businesses, but that is not always the case. BOI stands for “Beneficial Ownership” and not “Business Ownership”.

There are many entities that have been established with their Secretary of State that are not typical business operations.

• For example, you may have set up an entity (ie- LLC) with the Secretary of State to hold property. These may included rental properties, but it could also include investment or vacation property that your attorney advised you establish for limited liability or estate planning purposes.

Another scenario to consider is past business operations.

• You may have set up an entity (ie- LLC) with the Secretary of State for a business in the past but that is no longer  active. If this entity has not formally been dissolved with the Secretary of State, BOI Reporting still applies. FinCEN guidance says that even if the entity’s status is “administratively dissolved”, a BOI Report filing is required.

Please review our BOI Reporting Requirements article to further understand and access these rules.