How to File BOI Report in Alabama – Ultimate Guide (2024)


Steve Goldstein
Steve Goldstein
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How to file a BOI Report in Alabama: Since the Corporate Transparency Act, the Beneficial Ownership Information (BOI) principle has become an important aspect of the regulatory framework for Limited Liability Companies, Corporations, and all types of business structures. This act aims to increase transparency and fight against illegal financial activities by requiring businesses to disclose information about beneficial owners. In Alabama, companies must comply with these BOI reporting obligations, and this guide will give a comprehensive overview of the processes involved, entities affected, and compliance actions that must be put in place.

Alabama, also known as The Yellowhammer State, has a population of 5,097,641. That makes the state small business friendly. According to the act, small and medium-sized businesses have to file BOI reports. In this article, LLCBuddy editors shared the latest update and mandate on filing BOI reports in Alabama

What is Beneficial Ownership in Alabama?

Beneficial ownership in Alabama entails individuals who own or control an entity ultimately even though legal ownership rests with some other person. These persons may have significant influence over it or hold substantial interest therein as owners. Identifying who qualifies as a beneficial owner is a critical first step in complying with BOI reporting requirements. To be a beneficial owner, one must meet at least one of the following:

  1. Has direct or indirect ownership of 25% or more of the entity’s equity interests
  2. Directly or indirectly exercises significant control over the entity

It should be noted that beneficial ownership can involve complicated ownership structures; therefore entities should conduct thorough assessments of their organizational structure and holdings.

Beneficial Ownership Information Reporting

The BOI (Beneficial Ownership Information) Report is a memo or document that every small and medium-sized business (exemption applicable) has to file with the Financial Crimes Enforcement Network (FinCEN). In Alabama, any LLC that is eligible to enlist under the reporting company must file the BOI Report within the given period.

It is not only mandatory for all businesses in Alabama but also can lead to heavy monetary penalties along with imprisonment. There are many reasons why the Corporate Transparency Act was started and BOI Report filing becomes mandatory for all businesses in Alabama.

BOI Reporting Companies (Entities) in Alabama

Not every company, located in Alabama, is required to file BOI reports with FinCEN. Only the eligible companies (Reporting Companies) are liable to file the BOI report. Following are the requirements for BOI reporting,

Entities Required to Report

There are certain entities that are considered “Reporting Companies” as per the Corporate Transparency Act and must report beneficial ownership information. Normally, these include:

Exempted Entities

However, it is important to note that there are certain entities in Alabama that do not have BOI reporting requirements such as;

corporate-act
  • Sole proprietorships or any business structure that does not require registration under Alabama SOS.
  • Large entities (more than 20 employees with $5M revenue)
  • Tax-exempt organizations
  • Inactive entities meeting specific criteria
  • Subsidiaries of exempt entities
  • Complex ownership that is not publicly known

For PLLCs, selected types of companies get to file BOI reports. Small PLLCs that do not meet the eligibility of reporting companies are exempted from filing BOIR. Besides, PLLCs that are already under stringent regulatory authority like the medical or law field, might get an exemption too.

List of Entities Exempted from BOI Reporting According to FinCEN

  • Securities reporting issuer
  • Governmental authority
  • Bank
  • Credit union
  • Depository institution holding company
  • Money services business
  • Broker or dealer in securities
  • Securities exchange or clearing agency
  • Other Exchange Act registered entity
  • Investment companies or investment advisers
  • Venture capital fund adviser
  • Insurance company
  • State-licensed insurance producer
  • Commodity Exchange Act registered entity
  • Accounting firm
  • Public utility
  • Financial market utility
  • Pooled investment vehicle
  • Tax-exempt entity
  • Entity assisting a tax-exempt entity
  • Large operating company
  • Subsidiary of certain exempt entities
  • Inactive entity

Entities should review their classification carefully in order to ascertain if they fall under the requirement for reporting or qualify for an exemption. It is recommended to consult an expert before you start filing your BOI Report. Also, not only the above-mentioned sectors but also the size and structure of the business matters when it comes to filing the report. Hence, it is important to consult an expert beforehand.

How to File a BOI Report in Alabama?

In Alabama, you can file your BOI report in two ways. The report can be filed online or offline. The process is pretty simple. There is an online and offline (PDF) form available. The reporting company in Alabama has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Alabama

Online BOI Report Filing in Alabama

  • For online filing, reporting companies in Alabama are required to visit the FinCEN BOIR e-filing page.
  • The first page shows 4 options, Initial Report, Correct Prior Report, Update Prior Report, and Newly Exempt Entity.
  • For the fresh filing, select Initial Report and click NEXT.
  • On the next page, fill out the form for Reporting Company and ask for FinCEN ID.
  • The ‘Company Applicant’ page comes up next. Add the details wherever is required.
  • The next page shows the details of the Beneficial Owner(s). Also, mention if there is an exemption.
  • Submit the online form after sharing your name and email on the final page.
BOI reporting e-filing

Offline BOI Report Filing in Alabama

  • For offline filing, visit the FinCEN BOI Report filing page
  • Download the PDF form from the ‘Prepare BOIR’ option
  • The PDF form requires Adobe Reader 8 or higher, make sure you have this version installed on your device.
  • Save the form on your device.
  • Fill it up with the correct information. Make sure to select the ‘Initial Report’ if you’re filing it afresh. For correction or updating the previous form, select the other options.
  • Once filled up, upload the form on the site by clicking on ‘Submit BOIR’.
  • On the Submit page, you will have to provide your name and email. Click on the ‘upload document’ section to upload the PDF form and submit it.
BOI offline filing

Though it is not very difficult to file a BOI Report on your own, it is recommended to get a professional help. Mainly because of the diverse business structure. We recommend TailorBrands as they not only offer free LLC formation, but also guide you through the BOI reporting process and deadline. That can save you a lot of money and penalty.

LLCBuddy Editors

Reporting Process and Timeline

BOI Reporting effectively becomes mandatory from January 1, 2024, in Alabama and the rest of the United States. All the LLCs in Alabama, Corporations, and other types of businesses registered under Alabama Secretary of State will have to file the report within the given time.

  • Entities in Alabama incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
  • Entities in Alabama incorporated or registered on or after January 1, 2024, will have to file their BOI report within 90 working days from the date of completion of company registration with Alabama SOS or similar authority.
  • Entities in Alabama incorporated or registered on or after January 1, 2025, will have to file their BOI report within 30 working days from the date of completion of company registration with Alabama SOS or similar authority.

Penalties for Non-Compliance with CTA (BOI Report Filing)

The authority decides to make it more difficult for the companies that fail to comply with the Corporate Transparency Act or BOI report filing. Following are the monetary and other penalties for non-compliance,

  • The Civil Penalty for missing the deadline in Alabama is $500 a day for the company
  • The Criminal Penalty for not filing the BOI Report in Alabama is $10,000
  • Continuing violating rules and non-compliance in Alabama can lead to 2 years imprisonment

The FinCEN makes sure that every reporting company must file the BOI report as soon as they meet the eligibility criteria. The penalty is heavy, especially for small businesses in Alabama.

BOI Reporting Required Information in Alabama

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Alabama. The compulsory information to be given in respect of each beneficial owner includes:

business requirement
  • Reporting Company legal name
  • Alternative or DBA Name (if any)
  • Tax Identification type
  • Country/Jurisdiction of Formation
  • Address (number, street, and apt. or suite no.)
  • Individual’s Full Legal Name
  • Date of birth
  • Current Address
  • Identifying document (Type, Number, Issuing Jurisdiction, Image)
  • Beneficial Owner Details (Legal Name, FinCEN ID, Address, DOB)

Entitles should confirm that the information given is correct and up-to-date as any inconsistencies or inaccuracies may attract penalties.

Ensuring their BOI reports are accurate and updated is a responsibility that these bodies have. Disputes or concealed information, therefore, need to be attended to quickly and openly as this is essential in compliance maintenance. Should organizations fail to do this, they may invite increased scrutiny with possible penalties imposed against them.

Privacy and Data Security

While the requirements for BOI reporting in Alabama aim at increasing transparency levels, there are practical challenges faced by entities regarding the identification and disclosure of beneficial ownership information. These may include:

  • Complexity in identifying beneficial ownership for entities with intricate ownership structures or multi-layered holding companies.
  • Difficulties in obtaining accurate and up-to-date information from beneficial owners, particularly where ownership interests are held indirectly or via intermediaries.
  • This places an additional burden on small businesses which will find it hard to deploy enough resources and personnel to deal with compliance matters.

Entities can overcome these hurdles through engagement of professionals’ advice; and having internal mechanisms that strengthen their capacity to communicate with their beneficiaries.

Regulatory and Legal Considerations

In addition to the issues above, entities in Alabama must also navigate numerous regulatory and legal considerations when reporting BOI. These include:

  • Balancing transparency with legitimate privacy concerns, especially for individuals who may be exposed to personal safety risks or other sensitive situations.
  • Addressing international implications and cross-border ownership structures since BOI reporting requirements can vary across jurisdictions.
  • Compliance with other relevant legislations such as anti-money laundering (AML) laws and know-your-customer (KYC) regulations is necessary as well.

What helps entities address these concerns is consulting the legal fraternity on changes occurring within the regulatory space.

Anticipated Changes and Updates

With time, FinCEN together with other relevant agencies will provide further guidance on complying with these reporting requirements as financial crime evolves. For instance, new changes could affect how they comply with these requirements. Additionally, in the future, there is a possibility of expanding or modifying the reporting requirements to deal with emerging issues or any possible loopholes.

Impact on Businesses and Financial Sector in Alabama

The introduction of BOI reporting requirements will have profound effects on both corporate entities and the financial sector as a whole. Likely consequences could include:

  • Increased administrative burdens and compliance costs for firms, especially at the early stages of implementation.
  • Enhanced due diligence procedures by financial institutions to verify the accuracy of BOI reports and identify potential red flags.
  • Business practices may change leading to ownership structures that are more flexible to fit into new transparency needs.
  • Entities that have complex ownership arrangements or those operating internationally may face some difficulties.

Nonetheless, in the long run, it can be expected that this law would go towards creating an environment where business is transparent and accountable thus enhancing trust and integrity within the financial system.

Significance of Reporting Beneficial Ownership Information

Reporting BOI is essential for several reasons. We have come up with three main reasons that CTA pointed out for having BOI reporting.

business
  • Preventing Illegal Activities: Identifying true owners helps to combat money laundering, terrorist financing, and other financial crimes in Alabama since bad actors cannot hide behind complex corporate structures.
  • Enhancing Transparency: It ensures corporate transparency and accountability so that entities cannot operate under cover but are required to reveal who their beneficial owner(s) are.
  • Facilitating Law Enforcement: Accurate data on BOI allows law enforcement authorities to investigate and prosecute fraudulent activities better thus protecting a fair business environment.

Starting an LLC in Alabama or forming a corporation in Alabama can be an eyewash of hiding other shady activities or illegal businesses. Companies often create shell companies to money launder. This reporting was started to prevent such activities in Alabama.

State Specific Data: Alabama

Capital and Incorporation

  • The capital of Alabama is Montgomery.
  • The population of Alabama: 5,097,641
  • The Annual GDP of Alabama: 280,220
  • Incorporation in Alabama can be done through various methods including online and offline. For more details, visit Alabama Secretary of State.
  • Incorporation Method in Alabama (Online): There’s no online filing available.
  • Incorporation Method in Alabama (Offline): Send the form to the Secretary of State, P.O. Box 5616, Montgomery, AL 36103

Filing Fees

  • LLC Initial Filing Fee: $200 (by mail and $208 online)
  • LLC Amendment Fees: $50
  • Annual Fee: $100
  • DBA Filing Fee: $30
  • Incorporation Fee: $200 for filing by mail
  • Registered Agent Change Fee: $25
  • Corporate Amendment Fee: $100

Important Offices

  • State Tax Office: Alabama Department of Revenue
  • State Insurance Office: Alabama Department of Insurance
  • Secretary of State Address: Secretary of State, P.O. Box 5616, Montgomery, AL 36103
  • Department of Treasury: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​

Key Contacts

  • Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​
  • Filing Method for DBA: three methods, online, by mail, and in person filing.
  • Filing Fee for DBA: $30
  • Online Filing for DBA: For online filing, you need to visit the Alabama Secretary of State website, submit the online form along with the filing fees.
  • Offline Filing for DBA: For offline filing, download the form and send it to State of Alabama Office of the Secretary of State, Trademarks Division, P.O. Box 5616, Montgomery, AL 36103-5616 OR drop off the form in person to State of Alabama Office of the Secretary of State, Trademarks Division, 11 South Union St., Suite 224, Montgomery, AL 36130.

By staying compliant with the BOI reporting requirements and leveraging the resources available in Alabama, businesses can ensure they meet all regulatory obligations efficiently.

FAQs

How do I file a BOI report in Alabama?
To file a BOI report in Alabama, you can contact the Alabama Department of Insurance.
What information do I need to include in a BOI report in Alabama?
In Alabama, you will need to include details such as the date of the incident, location, description, and individuals involved in the BOI report.
Is there a deadline for filing a BOI report in Alabama?
The deadline for filing a BOI report in Alabama may vary depending on the type of incident, so it is best to consult with the Alabama Department of Insurance for specific deadlines.
Can I file a BOI report online in Alabama?
Yes, you may be able to file a BOI report online in Alabama, depending on the specific requirements of the Alabama Department of Insurance.
Are there any fees associated with filing a BOI report in Alabama?
There may be fees associated with filing a BOI report in Alabama, so it is recommended to check with the Alabama Department of Insurance for more information on any applicable fees.
What is the process for filing a BOI report in Alabama?
The process for filing a BOI report in Alabama typically involves completing the necessary forms and submitting them to the Alabama Department of Insurance.
Can I file a BOI report anonymously in Alabama?
In Alabama, you may be able to file a BOI report anonymously, but this will depend on the specific requirements of the Alabama Department of Insurance.
How long does it take to process a BOI report in Alabama?
The processing time for a BOI report in Alabama can vary, so it is best to consult with the Alabama Department of Insurance for more information on the expected timeline.
What are the consequences of not filing a BOI report in Alabama?
Failure to file a BOI report in Alabama could result in penalties or other consequences, so it is important to comply with any reporting requirements.
Can I file a BOI report for any type of incident in Alabama?
You may be able to file a BOI report for a variety of incidents in Alabama, but it is best to verify with the Alabama Department of Insurance if your specific incident is reportable.
How can I follow up on a BOI report in Alabama?
To follow up on a BOI report in Alabama, you can contact the Alabama Department of Insurance for more information on the status of your report.
Can I amend a BOI report after filing in Alabama?
It may be possible to amend a BOI report after filing in Alabama, but you should consult with the Alabama Department of Insurance for guidance on how to make any necessary changes.
What should I do if my BOI report in Alabama is rejected?
If your BOI report in Alabama is rejected, you should contact the Alabama Department of Insurance for more information on why it was rejected and how to address any issues.
Can I appeal a decision made based on a BOI report in Alabama?
If you disagree with a decision based on a BOI report in Alabama, you may be able to appeal the decision through the appropriate channels, according to the Alabama Department of Insurance guidelines.
Is there a way to request expedited processing of a BOI report in Alabama?
Expedited processing of a BOI report in Alabama may be possible in certain situations, so it is best to contact the Alabama Department of Insurance for information on how to make such a request.
Are there any resources available to help me file a BOI report in Alabama?
Yes, there may be resources available to assist you in filing a BOI report in Alabama, such as guidance documents or customer service representatives at the Alabama Department of Insurance.
Can I file a BOI report for an incident that occurred outside of Alabama?
It is generally recommended to file a BOI report in the state where the incident occurred, but it is best to verify with the Alabama Department of Insurance if you can file a report for an out-of-state incident.
Do I need to consult an attorney before filing a BOI report in Alabama?
While you may choose to consult an attorney before filing a BOI report in Alabama, it is not always necessary, so it is best to assess your specific situation and needs.
Is there a hotline I can call for assistance with filing a BOI report in Alabama?
You may be able to call a hotline for assistance with filing a BOI report in Alabama, but you should check with the Alabama Department of Insurance for the most up-to-date contact information.
Can I request confidentiality for my BOI report in Alabama?
Requesting confidentiality for your BOI report in Alabama may be possible, but it is recommended to discuss any concerns with the Alabama Department of Insurance for guidance on protecting your information.
How can I obtain a copy of my filed BOI report in Alabama?
To obtain a copy of your filed BOI report in Alabama, you can submit a formal request to the Alabama Department of Insurance according to their procedures for accessing records.
Can I submit additional evidence or documentation after filing a BOI report in Alabama?
Submitting additional evidence or documentation after filing a BOI report in Alabama may be allowed, but it is best to confirm with the Alabama Department of Insurance for instructions on how to provide supplemental information.
What should I do if I suspect fraud when filing a BOI report in Alabama?
If you suspect fraud when filing a BOI report in Alabama, it is important to report your concerns to the Alabama Department of Insurance as soon as possible.
Can I request a copy of a BOI report filed by someone else in Alabama?
You may be able to request a copy of a BOI report filed by someone else in Alabama, but you should adhere to any privacy laws and procedures set forth by the Alabama Department of Insurance.
How can I check the status of my BOI report in Alabama?
To check the status of your BOI report in Alabama, you can contact the Alabama Department of Insurance and inquire about the progress of your report.
Can I file a BOI report for a future incident in Alabama?
BOI reports are typically filed for past incidents in Alabama, but you should consult with the Alabama Department of Insurance for guidance on reporting future events or risks.
Can a BOI report in Alabama be used in a legal proceeding?
A BOI report in Alabama may be used as evidence in a legal proceeding, but it is best to seek legal advice on how to proceed with using the report in a court case.
How can I learn more about the BOI reporting requirements in Alabama?
To learn more about the BOI reporting requirements in Alabama, you can visit the website of the Alabama Department of Insurance or contact their office for additional information.
What steps should I take after filing a BOI report in Alabama?
After filing a BOI report in Alabama, it is important to follow up on any correspondence from the Alabama Department of Insurance and provide any additional information as needed for the investigation.
When is the deadline to file a BOI report in Alabama?
The deadline to file a BOI report in Alabama typically falls on March 1st of each year.
What information do I need to include in my BOI report in Alabama?
You will need to provide detailed financial information about your insurance business, including premium volume and claims data.
Can I file my BOI report online in Alabama?
Yes, you can file your BOI report online through the Alabama Department of Insurance’s online portal.
How can I access previous BOI reports filed in Alabama?
You can request copies of previous BOI reports from the Alabama Department of Insurance.
What happens if I miss the deadline to file my BOI report in Alabama?
Failing to file your BOI report by the deadline in Alabama may result in penalties and fines.
Can I amend my BOI report after filing it in Alabama?
Yes, you can make amendments to your BOI report in Alabama by submitting a revised report to the Department of Insurance.
How long does it take for the Alabama Department of Insurance to process a BOI report?
The processing time for BOI reports in Alabama can vary, but you should receive a confirmation of receipt shortly after submission.
Are there any specific requirements for filing a BOI report in Alabama as a new insurance company?
Yes, new insurance companies in Alabama may have additional requirements when filing their first BOI report.
What supporting documents do I need to submit with my BOI report in Alabama?
You may need to include financial statements, audit reports, and other relevant documents with your BOI report in Alabama.
Can I request an extension for filing my BOI report in Alabama?
Extensions for filing a BOI report in Alabama may be granted under certain circumstances, but must be requested in advance.
What should I do if I discover errors in my filed BOI report in Alabama?
You should contact the Alabama Department of Insurance as soon as possible to correct any errors in your BOI report.
Does Alabama require electronic filing of BOI reports?
Yes, Alabama requires electronic filing of BOI reports for most insurance companies.
Where can I find more information about filing a BOI report in Alabama?
You can find detailed instructions and resources on the Alabama Department of Insurance website.
Are there any exemptions from filing a BOI report in Alabama?
Some insurance companies may be exempt from filing a BOI report in Alabama, depending on the nature of their business.
What is the purpose of filing a BOI report in Alabama?
The purpose of filing a BOI report in Alabama is to provide the Department of Insurance with necessary data to regulate the insurance industry.
Can I file my BOI report in person in Alabama?
It is recommended to file your BOI report online, but in-person filing may be available at the Alabama Department of Insurance office.
What should I do if I have questions about filling out my BOI report in Alabama?
You can contact the Alabama Department of Insurance for guidance and assistance with filling out your BOI report.
Are there any updates or changes to the BOI reporting requirements in Alabama for this year?
It is important to stay informed about any updates or changes to BOI reporting requirements in Alabama by regularly checking the Department of Insurance website.
Can I hire a professional to help me file my BOI report in Alabama?
Yes, you can hire an insurance consultant or accountant to assist you with filing your BOI report in Alabama.
What should I do if I suspect fraudulent activity in my BOI report in Alabama?
Answer :You should report any suspected fraudulent activity in your BOI report to the Alabama Department of Insurance immediately.
How can I check the status of my filed BOI report in Alabama?
You can check the status of your filed BOI report in Alabama by contacting the Department of Insurance or checking online.
Can I file a BOI report on behalf of someone else in Alabama?
If you are an authorized representative, you may file a BOI report on behalf of another party in Alabama.
Does Alabama offer any resources or assistance for filling out a BOI report?
The Alabama Department of Insurance may provide resources or guidance to help you fill out your BOI report.
What happens if I fail to file a BOI report in Alabama two years in a row?
Failure to file a BOI report in Alabama for two consecutive years may result in severe penalties and sanctions.
Is there a helpline or support line for questions related to filing a BOI report in Alabama?
Yes, the Alabama Department of Insurance may have a helpline or support line to assist with questions related to filing a BOI report.
Can I request a copy of my filed BOI report in Alabama for my records?
Yes, you can request a copy of your filed BOI report in Alabama from the Department of Insurance for your records.
What steps should I take if I receive a notice of non-compliance regarding my filed BOI report in Alabama?
You should follow the instructions in the notice and take immediate action to correct any non-compliance issues with your BOI report in Alabama.

Also Read

In Conclusion

In the world of business, conducting illicit monetary transactions is not a new thing. To prevent that the Corporate Transparency Act came into the picture. Businesses in Alabama, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Alabama, the companies must understand the obligations to comply with the rules.

In Alabama, before you start filing the BOI Report, there are a few important points to note. Important points worth noting are:

  • Identifying beneficial owners from their control or ownership interests over the entity.
  • Reporting accurate information at all times including names, dates of birth, addresses, and identification details about beneficiaries.
  • Timely filing of the initial reports and updating the reports in case of changes.
  • When required, involve reputable third-party service providers to assist in the filing process.
  • Ensure compliance with relevant penalties for non –compliance.
  • Deal with practical challenges and legal issues related to BOI reporting.
  • Keep abreast of future developments and advice from relevant bodies.

Filing the BOI Report does not require complicated steps, however, it definitely requires an expert to proceed. We recommend TailorBrands, one of the best LLC formation services that not only offers free LLC formation but also offers BOI Reporting at a very reasonable cost.

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