7 Things to Know About US Beneficial Ownership Information (BOI) Reporting 

Introduction

US Beneficial Ownership Information (BOI) reporting has reshaped how ownership transparency works in the United States. Introduced under the Corporate Transparency Act (CTA), this requirement focuses on identifying the real individuals who own or exercise control over companies. The objective is clear: to prevent the misuse of corporate structures for money laundering, tax evasion, and other illegal activities.

At Ebizfiling, we help foreign businesses understand how BOI reporting applies to them, especially after recent regulatory updates, and ensure they remain compliant without unnecessary confusion or risk.

What Is US Beneficial Ownership Information BOI Reporting?

US beneficial ownership information BOI reporting requires companies to disclose details of individuals who directly or indirectly own or control the business. This information is submitted to the Financial Crimes Enforcement Network, commonly known as FinCEN. It goes beyond listing shareholders and looks at who actually holds decision making power.

This reporting framework helps authorities identify the true owners behind complex company structures. It is designed to prevent the use of shell companies for money laundering, fraud, and other financial crimes. For legitimate businesses, BOI reporting also builds credibility and trust in cross border transactions.

Why Is Beneficial Ownership Information Important?

Beneficial ownership information plays a critical role in risk management and compliance. Financial institutions rely on this data to complete due diligence checks. Governments use it to assess eligibility for licenses, contracts, and funding. Businesses depend on it to evaluate third party risks before entering partnerships.

Without BOI, it becomes difficult to identify high risk ownership patterns or connections to sanctioned individuals. Transparent ownership data allows companies and regulators to act before risks turn into legal or financial problems. This is why BOI reporting has become a global compliance standard.

Who Needs to Comply After the March 2025 FinCEN Update?

In March 2025, FinCEN issued an interim final rule that significantly changed BOI reporting enforcement. Under this update, companies formed under US state or tribal laws no longer face BOI penalties or enforcement actions. US citizens who qualify as beneficial owners are also exempt from penalties.

However, foreign companies registered to do business in the United States must still comply with BOI reporting requirements. This distinction is important for Indian founders and overseas businesses operating in the US. Ignoring BOI obligations as a foreign entity can still result in serious consequences.

What Does Substantial Control Mean Under BOI Rules?

BOI reporting is not limited to ownership percentages. FinCEN introduced the concept of substantial control to capture real influence within a company. An individual may be considered a beneficial owner even without holding equity, if they can influence key decisions.

Senior officers such as CEOs, CFOs, and General Counsels fall under this category. Individuals who can appoint or remove directors, or who control major operational or financial decisions, also qualify. This ensures that individuals with real authority cannot stay hidden behind formal structures.

 When and How Is BOI Reporting Filed With FinCEN?   

BOI reports are filed electronically through the FinCEN BOI E Filing System, which became operational on January 1, 2024. Foreign companies registered before the interim rule must file within 30 days of the rule’s publication. Companies registered after the rule must submit their BOI report within 30 days of receiving confirmation of registration.

The report requires personal details of beneficial owners, including full name, date of birth, address, and government issued identification such as a passport. Filing can be completed by an authorized company representative or a third party service provider like Ebizfiling.

 Who Can Access BOI Information? 

BOI data is not available to the public. Access is strictly limited under the Corporate Transparency Act. Authorized federal, state, local, and tribal authorities may access the information for law enforcement and national security purposes.

Financial institutions may also access BOI data in certain cases, but only with the reporting company’s consent. This controlled access balances transparency with privacy, ensuring sensitive ownership data is protected.

 What Are the Consequences of Not Filing BOI Reporting?

For foreign companies, non compliance with BOI reporting carries serious penalties. Civil penalties may reach up to USD 500 per day for continued violations. Criminal penalties may include fines of up to USD 10,000 and imprisonment for up to two years.

In March 2025, the US Treasury clarified that US domestic companies and US beneficial owners will not face penalties. This relief does not apply to foreign entities, making timely and accurate filing essential for overseas businesses.

 How Ebizfiling Helps With BOI Reporting?

At Ebizfiling, we take a practical and structured approach to BOI reporting. We first assess whether your business qualifies as a reporting company under FinCEN rules. We then identify all beneficial owners and individuals exercising substantial control.

Our team prepares and files BOI reports through the FinCEN system and supports update filings when ownership or control changes. This helps foreign businesses stay compliant while focusing on growth instead of regulatory stress.  For more information about how Ebizfiling can help you access beneficial ownership information and integrate that into your compliance and risk management processes, please get in touch – we would love to hear from you.

 Conclusion   

US beneficial ownership information BOI reporting is a key compliance requirement for foreign companies operating in the United States. While enforcement has eased for US domestic entities, foreign businesses must remain diligent. Understanding BOI rules and acting on time helps avoid penalties and operational risks. Ebizfiling supports businesses at every stage of BOI compliance with clarity and confidence.

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