Types of Entities
There are two categories of entities we care about, when considering Beneficial Ownership Information (BOI) reporting to FinCEN. The first category pertains to the “reporting company,” the term used by FinCEN to identify companies who are required to report their BOI, and how the type of entity of a reporting company influences how one determines…
Read MoreEntities as Beneficial Owners
A wide-variety of entities can own a company, and the type of entity can influence how you determine Beneficial Ownership. FinCEN Defines Four Types of Entities FinCEN groups entities into four categories: individuals, trusts, companies, and “other entities”. “Other entities” has received very little attention by FinCEN (at least in the version 1.1 December 2023…
Read MoreWho Can Access the Beneficial Ownership Information that FinCEN Maintains?
Now that I have registered my beneficial ownership information with FinCen, who can request to view it? On December 21, 2023 FinCen published the final rule elaborating on the Corporate Transparency Act’s purpose, access, and safeguards to information. The ostensible purpose of the Corporate Transparency Act is to protect national security and safeguard U.S. financial…
Read MoreTax Status for Companies
There are typically five (5) different tax statuses for “reporting companies,” which is the term used for companies that are required to report their Beneficial Ownership Information (or BOI) to FinCEN. It’s very important to know what the tax status of the reporting companies is, because it can have an impact on how BOI’s are…
Read MoreSubstantial Control
“Reporting companies” are those companies that must report the Beneficial Ownership Information (BOI) of individuals who are Beneficial Owners. Who are such individuals? FinCEN says Beneficial Owners are defined in one of two ways: whether the total of their direct and indirect ownership interest is 25% or more (which goes to evaluate Voting Power), as…
Read MoreOwnership Interest Value
In addition to the more straightforward analysis of Voting Power as a determinant of the beneficial ownership reporting threshold, an entity must independently evaluate the amount of Ownership Interest Value held by all individuals, as a percentage of the total value of the reporting entity. Of course, the first step in this process is to…
Read MoreCompanies as Beneficial Owners
FinCEN identifies four types of entities that can own companies (called “reporting companies” if they are required to report their Beneficial Ownership Information (or BOI) to FinCEN), and they are individuals, trusts, companies, and other types of entities. Technically, Beneficial Owners can only be individuals. Therefore, if a company has an ownership interest in a…
Read MoreTrusts as Beneficial Owners
Trusts, along with other types of entities such as individuals and companies, can own a company, such as a Corporation or Limited Liability Company (LLC). If a company is required to report Beneficial Ownership Information (or BOI) to FinCEN, it is referred to as a “reporting company”. A reporting company must report BOI, but BOI…
Read MoreIndependent Truckers Need to Report Beneficial Ownership Information (BOI)
The Financial Crimes Enforcement Network’s (or FinCEN’s) new requirements for beneficial ownership information reporting places new obligations on most small business owners. If you are just beginning your journey in navigating the new reporting requirements, you are not alone. Millions of small business owners are discerning whether or not they must report on beneficial ownership,…
Read MoreClasses of Ownership
Classes of ownership typically signify different voting rights or value of ownership, which must both be looked at when considering Beneficial Ownership.
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