In the evolving landscape of regulatory compliance, businesses face a new challenge this year: Beneficial Ownership Information (BOI) Reporting. At First Independent Bank, we're committed to supporting our business clients in every way, including teaching and advising owners about new mandates and regulations.

Whether you’ve heard about BOI Reporting or not, this blog will fill you in on all the basic details so that you can navigate this new regulation with confidence.

Understanding BOI Reporting

BOI Reporting was enacted by Congress in 2021 through the Corporate Transparency Act, to make it harder to hide or benefit from illegal financial activities. This new standard enhances transparency by requiring companies to disclose information about their beneficial owners. Beneficial Ownership Information Reporting mandates particularly small corporations and LLCs, that have registered with their state’s secretary of state or a similar office, to report this information.

If your company falls under this category, you'll likely need to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. While banks are not required to monitor this new reporting, FIB wants to ensure all our business clients have access to the information they need to navigate BOI reporting and avoid penalties.

Complying with BOI Reporting

Who Has to Report on BOI?

There are some exemptions for BOI Reporting but if you are a small corporation or LLC, you will likely be required to report your beneficial ownership information to FinCEN.  A key indicator that your company needs to report is if you had to file a document with your state’s secretary of state or a similar office to create your company (or, for foreign companies, register it to do business in the United States.)

At FIB, we recognize the complexity of regulatory compliance and strive to provide advice to our community businesses each step of the way. If you are unsure or confused about your responsibility to report on Beneficial Ownership Information, get more information from FinCEN, or talk to your business banker today. Our experienced team offers personalized guidance when navigating BOI reporting requirements, to ensure our business clients understand their obligations and deadlines. 

When do I have to report?

If your company was established before January 1, 2024, you have until January 1, 2025, to file BOI reports.

If your company was (or will be) formed between January 1, 2024, and January 1, 2025, you will need to file BOI reports within 90 calendar days of registration.

For companies established on or after January 1, 2025, BOI reports will need to be filed within 30 calendar days of registration.

What do I have to report?

BOI reports contain standard business and personal information. For companies, this includes legal name and DBA(s), business address, jurisdiction of formation, and Taxpayer Identification Number (TIN). For beneficial owners and other individuals, this includes legal names, birthdates, addresses, and identifying numbers from official documents.

Partnering for Success

Just as we've supported Minnesota farms and agricultural ventures with tailored financing solutions, FIB is here to empower our community businesses to meet these new government obligations. As your trusted financial partner, we're committed to helping you navigate regulatory complexities, achieve compliance, and focus on what matters most—growing your business.

Don't let business regulations be a roadblock to your success. Contact First Independent Bank to learn more about how we can support your business in navigating BOI Reporting requirements, so you can thrive in today's dynamic business environment. Together, let's pave the way for transparency, integrity, and growth.