Businesses subject to the Corporate Transparency Act (CTA) must file their initial Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) by the deadline specified by the CTA regulations.

As of the current regulations, businesses are not required to re-file the BOI report annually if there are no changes to the reported information. However, there are occasions when the BOI report needs to be updated.

Updating the BOI Report

Businesses must update their BOI report if there is a change in the beneficial owners. This includes any changes in ownership percentages, control, or the addition/removal of beneficial owners. Any changes to the reported information of existing beneficial owners, such as changes in name, address, or identifying numbers, must also be reported.

Businesses are required to update their BOI report within 30 days of becoming aware of the changes. This timely update ensures compliance and accuracy of the information maintained by FinCEN.

Tips for Knowing When the BOI Report Needs to Be Updated

1. Regular Review of Ownership Structure
   Conduct regular reviews of the company’s ownership structure to identify any changes in beneficial ownership or control. This can be done quarterly or semi-annually depending on the size and complexity of the business.
2. Internal Monitoring Systems
   Implement internal monitoring systems to track changes in ownership, such as new stock issuances, transfers of shares, or changes in the control structure. Automated systems can provide alerts when significant changes occur.
3. Documentation and Record-keeping
   Maintain up-to-date records of beneficial owners, including their contact information and identification documents. Regularly review and update these records to ensure accuracy.
4. Legal and Compliance Checks
   Schedule regular legal and compliance checks to ensure that all reporting requirements are being met. Compliance officers or legal advisors can help identify any changes that need to be reported.
5. Communication with Stakeholders
   Maintain open communication with stakeholders, including shareholders, board members, and key management personnel, to ensure any changes in ownership or control are promptly communicated to the compliance team.
6. Employee Training
   Train employees involved in corporate governance and compliance to understand the reporting requirements and the importance of timely updates. Educated employees are more likely to recognize and report relevant changes.

Summary Checklist for BOI Report Updates

• File the initial BOI report by the deadline specified by the CTA regulations.
• Regularly review ownership structure and beneficial ownership information.
• Implement internal monitoring systems for tracking changes.
• Update the BOI report within 30 days of any changes in beneficial ownership or reported information.
• Maintain accurate and up-to-date records of beneficial owners.
• Conduct regular compliance reviews to ensure adherence to reporting requirements.
• Train employees and maintain open communication with stakeholders to ensure timely reporting of changes.

By following these guidelines and tips, businesses can ensure they remain compliant with the Corporate Transparency Act and promptly update their BOI reports as required. If you need any help, Propel has an entire team of compliance specialists to help you file your BOI report and keep it up-to-date, so you can avoid costly fines and penalties for non-compliance. Get in touch to discuss our comprehensive BOI services with our team!