FINCEN BOI REPORT 2024 (Beneficial Ownership Information)

hi everyone in this video I'm going to walk you through how to do your own Boi or beneficial ownership information reporting which is a new Federal Regulation that started in 2024 where all entities all businesses or llc's need to send information about who the owners of companies are to the federal government so the first thing I'm going to do is I'm just going to go into Google and type finen f Cen Boi reporting and uh click on the fincen.gov site don't worry I'm going to copy and paste that URL and put it on the description so once you get to the financial crimes enforcement Network website we're going to see Boi benefit information we can click on learn more about reporting deadlines and I'm going to walk you through exactly what it says here any company that was created prior to 2024 so any business that was created prior to 2024 will have until January 1st of 2025 so you have a whole year in 2024 to report that if the company is new if it was it was created during 2024 um you will have 90 days from the moment you create the company to file so in this video we're going to be focusing more on the old companies prior to 2024 we're going to be doing the filing for that later on um as I create new companies and I help my my clients with uh new businesses to do the Boi reporting I will do that but keep in mind it's 90 days from the moment you create uh the company now there's no fees the government doesn't charge you anything to do this um although some companies will actually charge you for that if you actually click on some of the sponsored links like for example This legal zum one uh they charge to do the the reporting for you so um you can actually scroll down here and see they charge $49 to do the report for you and uh $200 a year if they do both the bi reporting and the uh State annual uh reports but notice there are companies out there charging for this service so in this video I'm going to show you how to do this on your own so let's go into the back into the fincent website and click on file report using Boe filing and then um the website's pretty pretty self-explanatory we're going to click on beneficial ownership information and click on uh get started or file Boi so it's a a Boi report now you can download the PDF file uh and do it manually via PDF I don't recommend it it's kind of a hot mess I prefer that you do it online so I'm not even going to waste any time with that but if you go into the help or the instructions you can actually uh read very detailed instructions they did a really great job with these PDFs you know you have you know 21 pages on this PDF report that works you through exactly what what the reporting requirements are who is required uh to file um what is a reporting entity like all this information is it's in here and it explains to you line by line if you're doing it uh with a PDF format every single page here kind of walks you through what every single um um line in the in the report is uh there's also quit reference guides here if you're going to be doing electronic f so not not the PDF but the electronic version and if you go through this there's actual screenshots the same thing we're covering here screenshots you you could print and you can go step by step and do the exact same thing that we're showing you in this video follow the instructions step by step so the federal government really stepped it up on this one I mean it's kind of annoying that they make you uh do this report but they actually walk you through what every uh form is going to to look like okay um uh you can also so search through them look at the quick reference guides too this is a basically a three-page report it's actually a lot lot shorter kind of um walks you through that so now I'm going to walk you through the small entity guides that they have here essentially is instructions in English Spanish whole bunch of different languages it's a pretty big PDF let me zoom in here uh it's 57 pages okay so if you want to go into the glory of all the details you can do that first page states that this is effective January 1st of 2024 so this is only for basic basically uh 2024 and and on uh you can go through the through the table of contents for example we'll start with you know uh is my company a reporting company and the very first chapter says not all the companies are required to report a Boi uh you know companies are required required to do a Boi are called reporting companies um and if they don't qualify for an exception uh they have to uh file so here's the next page it basically says is my company a reporting company and if you read the specific document it says a reporting company is an entity that meets the reporting company uh definition that doesn't qualify for a uh exception there's both domestic and foreign so there's actually two types of reporting entities so if your company is neither a domestic reporting company or a foreign that you don't have to do the Boi report now basically this little graph shows you it's very easy to read you know if the company does business or is formed in in the US and it's a corporation yes it has to uh report is a domestic reporting company if it's not a corporation but it's an loc then yes it is one uh unless it's um unless it's one of those Exceptions there which is uh not filed through a secretary of state okay uh so uh the the other ones are the foreign companies which is any foreign company that does business in the United States okay so here's a little bit more information on on on that and then it talks about the exceptions so the exceptions are a specific uh type of company there's 23 exceptions so as you can see through the list here we have um an entity that's that's uh labeled one of these things uh securi reporting issuer uh government Authority Bank Credit Union uh all these things so you want to go through them uh essentially these are these are businesses that already are federally regulated and they're already registered um with the federal government only tricky one here is accounting firm because this this one concerns me and a lot of my colleagues and essentially when you actually go and read the details of the exceptions because you're going to you can scroll down and you can see what every one of these exceptions uh mean uh once we we scroll down so uh let's go ahead and scroll down here and see every one of these exceptions you can actually see secuity issue reporter it asks you and there's yes and no questions to let you know so every one of those exceptions have a set of questions that clarify what this means but public accounting firm basically means it's registered in according to Section 102 sing Oxley act so basically these are all the large firms that do auditing for large businesses so for the most part essentially small small bookkeeping firms small CPA firms all uh are going to have to report so read you can read through all through all the Exceptions there and there's you know tons of other information in this document so if you want to go in depth you're welcome to do so a couple of the things worth mentioning here is the penalties so this actually tells you if you don't file your form uh you could get a fine up to two years in prison or $10,000 so I don't know how much they're going to enforce this but essentially the federal government is wanting to or is requiring you to do that now essentially if any business owner that has 25% or more ownership interest or what they call in substantial control are the essentially the people that you're going to report in this uh in this filing so the purpose of this filing long story short is to enter the company information and enter every single owner that again either has sub stantial control or at least 25% ownership in the business so the the document itself discusses what substantial control means if if it doesn't qualify for the 25% again if you want to get into details of this you can if you hire an attorney or an accountant to help you discern all this thing I guess you can do that but honestly it's pretty straightforward you got 25% you're probably going to have to file so let's go ahead and uh start the filing process Okay so so let's go ahead and and scroll down to a file online and we're going to click on uh prepare and submit uh boir and then click on I agree so the first thing is asking you is hey is this an initial report or an update to an old report and put the date and then click on next so for most of you this is going to be this is 2024 brand new this is going to be initial report so we're going to start with that um you know read the read the information at the bottom and then click on next okay so once we click on next uh the next page basically says um what is the reporting company name now I'm going to switch over to Sis which is like where where we register companies in Florida and I'm doing this for an actual real company so I'm going to paste in the company name where it says reporting company legal name uh if there's a DBA or something you would put that in there and then we're going to put the Ein or the tax ID notice I'm literally just copy and pasting this from my registration in Florida however some some states have this information public some don't so it depends really on what state you're in and you're going to have to Let's remove the hyphen there and you're going to have to get the legal name of the company the Ein and obviously uh the address so you're going to have to get all those things in there so we're going to put here this is a us-based company and we're going to put what state This was um where's what's the domestic address of the state which is Florida based and then we're going to scroll down and essentially just put uh the physical address again I I'm going the shortcut way I'm just uh copy and pasting this from the actual um state Register right CU it it all the stuff should match anyway um I mean if you have a different address obviously put the real address in there but and it happens to be that everything on the on the on the Florida public register for this Corporation is actual the actual one so we're going to put that in there so let's put here the state and the Sip code okay perfect then we click click on next so the next sort of big question is is this an existing company or a brand new company so this is all existing companies created prior to 2024 I haven't done anything any brand new company so we're actually going to click on existing company so this is all for companies created prior to 2024 so this is companies from 2023 and older and then all we have to do is um skip where it says company applicant information because this company was created prior to 2024 and then we're going to uh skip through the next page which is where we put the actual beneficial ownership information okay so we'll click on next or click over to where it says beneficial owners click on that and then we're going to put each of the owners of this company you could have M you could have more than one again if you remember um on the previous uh document is anybody that has substantial control or 25 um% or more so I'm going to put uh my name my date of birth obviously this is not real but um you know you know post edit I'm going to put the real information in here so I can actually uh file it correctly uh we'll put there the actual address of basically the owner so we're putting the owner's address in here again you want to put the real owner's address in here that's that's your job is to disclose this information that's what the federal government wants to know that wants to know who's got substantial control over every entity in the United States we're going to upload your either either put your driver's license number or your passport number and you're going to also upload that document you're going to scan that document and upload it uh put here which is the sort of the issuing State uh of of that um of that document that you're going to upload and then you basically click and drag or click or uh choose from folder and you're going to send your driver's license or your passport whatever identifying information you have and then we're going to click on next so after we finish this page essentially this is all we have assuming this is only one owner uh you would put that but if you have more owners you're going to go to add beneficial owner again in some cases you can have up to four because it's 25% or more or substant or that concept of substantial control so you're going to add this for every single owner that has substantial control or 25% or more you can remove it if there's only one owner for this business uh then you're going to put uh your email address okay you're going to confirm your email address in there okay you can can does can copy and paste yes I can then put your name and you're doing you essentially doing a um electronic signature in here you got got to confirm that you're human so I got to find the rabbit's eye I guess in here that's pretty interesting and we click on uh verify and then we click on submit the um beneficial ownership information report and then as soon as you click uh submit pretty fast again this is all being done electronically you you should get a confirmation number um it takes again about a minute you can uh copy that tracking information or literally just print this page now you can uh again copy and paste that that information somewhere you can download the transcript I would recommend this because this is kind of like your proof this is like a copy of the tax return per se um of of the reporting of of what you reported and pretty simple it just contains a transcript of everything you sent obviously if you make a mistake go back and and do an update um or um you know print this page as a as a PDF I guess um copy and paste that somewhere or print it as a PDF okay that's you really can't do much on this on this page other than that uh and uh and that's it that's how you do your benefit ownership information in the in the finsen uh website so you don't need to pay a professional okay is pretty simple you can do this on your own uh hopefully uh you know this walk through it's uh good enough for you again if you want to hire an accounting team or attorney team feel free to contact some I own an accounting firm and I have a whole team that does this stuff Tax Returns uh uh bookkeeping all that stuff so I'll put my information in the description if you want to contact the professional accounting firm all thank you see you on the next one

Channel: Hector Garcia CPA

Views: 5,035

Keywords: fincen, 2024, fincen bOI, BOI, benefit ownership information, new regulation, federal report, tutorial, hector garcia cpa

Id: pxY2pSwPfqE

Length: 15min 27sec (927 seconds)

Published: Wed Jan 10 2024