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


Steve Goldstein
Steve Goldstein
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How to file a BOI Report in Arizona: 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 Arizona, 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.

Arizona, also known as The Grand Canyon State, has a population of 7,379,346. 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 Arizona

What is Beneficial Ownership in Arizona?

Beneficial ownership in Arizona 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 Arizona, 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 Arizona 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 Arizona.

BOI Reporting Companies (Entities) in Arizona

Not every company, located in Arizona, 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 Arizona that do not have BOI reporting requirements such as;

corporate-act
  • Sole proprietorships or any business structure that does not require registration under Arizona 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 Arizona?

In Arizona, 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 Arizona has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Arizona

Online BOI Report Filing in Arizona

  • For online filing, reporting companies in Arizona 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 Arizona

  • 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 Arizona and the rest of the United States. All the LLCs in Arizona, Corporations, and other types of businesses registered under Arizona Secretary of State will have to file the report within the given time.

  • Entities in Arizona incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
  • Entities in Arizona 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 Arizona SOS or similar authority.
  • Entities in Arizona 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 Arizona 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 Arizona is $500 a day for the company
  • The Criminal Penalty for not filing the BOI Report in Arizona is $10,000
  • Continuing violating rules and non-compliance in Arizona 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 Arizona.

BOI Reporting Required Information in Arizona

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Arizona. 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 Arizona 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 Arizona 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 Arizona

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 Arizona 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 Arizona or forming a corporation in Arizona 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 Arizona.

State Specific Data: Arizona

Capital and Incorporation

  • The capital of Arizona is Phoenix.
  • The population of Arizona: 7,379,346
  • The Annual GDP of Arizona: 463,654
  • Incorporation in Arizona can be done through various methods including online and offline. For more details, visit Arizona Secretary of State.
  • Incorporation Method in Arizona (Online): There’s no online filing available.
  • Incorporation Method in Arizona (Offline): Send the form by mail or drop it in person to Arizona Corporation Commission, Corporate Filings Section, 1300 W. Washington St., Phoenix, AZ 85007

Filing Fees

  • LLC Initial Filing Fee: $50
  • LLC Amendment Fees: $25
  • Annual Fee: $0
  • DBA Filing Fee: $10 for filing and $3 for each duplicate copy.
  • Incorporation Fee: $60 for filing in-person and by mail
  • Registered Agent Change Fee: $5
  • Corporate Amendment Fee: $25

Important Offices

  • State Tax Office: Arizona Department of Revenue
  • State Insurance Office: Arizona Department of Insurance
  • Secretary of State Address: Arizona Corporation Commission, Corporate Filings Section, 1300 W. Washington St., Phoenix, AZ 85007
  • 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: several methods. Check Arizona Trade Name Handbook for more details.
  • Filing Fee for DBA: $10 for filing and $3 for each duplicate copy.
  • Online Filing for DBA: For online filing, check the https://apps.azsos.gov/apps/tntp/index.html for the forms
  • Offline Filing for DBA: Check Arizona Trade Name Handbook for details.

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

FAQs

How do I file a BOI report in Arizona?
In Arizona, you can file a BOI report by contacting the relevant agency responsible for overseeing BOI investigations.
What is a BOI report in Arizona?
In Arizona, a BOI report, also known as a Board of Inquiry report, is an official document that records the findings of an investigation into a specific incident.
Can I file a BOI report anonymously in Arizona?
Yes, in Arizona, you can choose to file a BOI report anonymously if you prefer to keep your identity confidential.
What types of incidents can be reported in a BOI report in Arizona?
You can file a BOI report in Arizona for a wide range of incidents, including workplace violations, safety concerns, and unethical behavior.
Who reviews the BOI report in Arizona?
The BOI report in Arizona is typically reviewed by a board or committee appointed by the relevant agency to investigate the incident.
How long does it take to process a BOI report in Arizona?
The processing time for a BOI report in Arizona can vary depending on the complexity of the investigation and the scope of the incident being reported.
Are there any fees associated with filing a BOI report in Arizona?
In Arizona, there are typically no fees associated with filing a BOI report, as the process is meant to be accessible to individuals seeking to report incidents.
Can I file a BOI report online in Arizona?
Yes, in Arizona, many agencies allow individuals to file BOI reports online through their official websites or online reporting portals.
What should I include in a BOI report in Arizona?
When filing a BOI report in Arizona, it is important to include detailed information about the incident being reported, as well as any evidence or documentation supporting your claim.
How will I know if my BOI report was received in Arizona?
In Arizona, you may receive a confirmation of receipt for your BOI report, typically via email or mail, depending on the reporting method used.
Is there a time limit for filing a BOI report in Arizona?
While there may not be a strict time limit for filing a BOI report in Arizona, it is best to file the report as soon as possible after the incident to ensure the accuracy and timeliness of the investigation.
Can I file a BOI report on behalf of someone else in Arizona?
Yes, in Arizona, you can file a BOI report on behalf of someone else if they are unable to do so themselves, such as in cases of harassment or discrimination.
What protections are in place for individuals filing a BOI report in Arizona?
In Arizona, there are legal protections in place to prevent retaliation against individuals who file a BOI report, including whistleblower protections and confidentiality measures.
Can I withdraw a BOI report in Arizona?
In Arizona, it may be possible to withdraw a BOI report if circumstances change or new information comes to light, but this decision may vary depending on the agency handling the report.
How is the confidentiality of a BOI report maintained in Arizona?
In Arizona, agencies typically have strict confidentiality measures in place to protect the identity of individuals filing BOI reports, as well as the details of the investigations themselves.
What recourse do I have if I am not satisfied with the outcome of a BOI report in Arizona?
If you are not satisfied with the outcome of a BOI report in Arizona, you may have the option to appeal the decision or request a review of the findings by a higher authority.
Are BOI reports public record in Arizona?
In most cases, BOI reports in Arizona are considered to be public record, unless they contain sensitive or confidential information that is protected by state law.
Can I request a copy of a BOI report in Arizona?
Yes, in Arizona, you may be able to request a copy of a BOI report through the agency responsible for overseeing the investigation, depending on their policies and procedures.
How can I follow up on a BOI report in Arizona?
In Arizona, you can typically follow up on a BOI report by contacting the agency handling the investigation directly and inquiring about the status or outcome of the report.
What is the purpose of filing a BOI report in Arizona?
The purpose of filing a BOI report in Arizona is to hold individuals or entities accountable for incidents of wrongdoing, misconduct, or violations of laws or regulations.
Who can file a BOI report in Arizona?
In Arizona, anyone with knowledge of an incident or situation that warrants investigation can file a BOI report, regardless of their personal involvement in the matter.
What is the process for investigating a BOI report in Arizona?
Once a BOI report is filed in Arizona, it is typically assigned to a board or committee for investigation, which may involve interviews, document reviews, and fact-finding to determine the outcome.
Are there specific reporting requirements for filing a BOI report in Arizona?
While there may not be specific reporting requirements for filing a BOI report in Arizona, it is important to provide as much detail and evidence as possible to support the investigation.
How can I ensure the confidentiality of my identity when filing a BOI report in Arizona?
To ensure the confidentiality of your identity when filing a BOI report in Arizona, you can request to remain anonymous or ask the agency to keep your information confidential during the investigation.
Who reviews the findings of a BOI report in Arizona?
The findings of a BOI report in Arizona are typically reviewed by a board or committee appointed by the agency overseeing the investigation to determine the appropriate course of action.
Do I need to file a BOI report in Arizona after a car accident?
Yes, it is important to file a BOI report in Arizona after a car accident.
When should I file a BOI report in Arizona?
You should file a BOI report in Arizona as soon as possible after an accident.
What information do I need to include in a BOI report in Arizona?
When filing a BOI report in Arizona, you will need to include details about the accident, the parties involved, and any injuries sustained.
Is there a deadline for filing a BOI report in Arizona?
It is advisable to file a BOI report in Arizona within 24 hours of the accident.
What happens if I fail to file a BOI report in Arizona?
Failing to file a BOI report in Arizona could lead to legal consequences.
Can I file a BOI report in person in Arizona?
Yes, you can file a BOI report in person at your local Arizona Department of Transportation office.
Is there a fee to file a BOI report in Arizona?
There is no fee to file a BOI report in Arizona.
How long does it take to receive a copy of a filed BOI report in Arizona?
It typically takes a few weeks to receive a copy of a filed BOI report in Arizona.
Can I amend a filed BOI report in Arizona?
Yes, you can request to amend a filed BOI report in Arizona if necessary.
How long do I have to keep a copy of a filed BOI report in Arizona?
It is recommended to keep a copy of a filed BOI report in Arizona for at least two years.
Can I request a copy of someone else’s filed BOI report in Arizona?
You may be able to request a copy of someone else’s filed BOI report in Arizona under certain circumstances.
Can I consult with an attorney before filing a BOI report in Arizona?
Yes, you can consult with an attorney before filing a BOI report in Arizona for legal guidance.
Can I file a BOI report in Arizona on behalf of someone else?
You can file a BOI report in Arizona on behalf of someone else if you have their permission.
Can I file a BOI report in Arizona without involving insurance companies?
It is advisable to involve insurance companies when filing a BOI report in Arizona for proper documentation.
Is there a specific form to use when filing a BOI report in Arizona?
Yes, there is a specific form provided by the Arizona Department of Transportation for filing a BOI report.
Can I file a BOI report for a hit-and-run incident in Arizona?
Yes, you should file a BOI report for a hit-and-run incident in Arizona.
Are there special requirements for filing a BOI report in Arizona for commercial vehicles?
Yes, there are specific requirements for filing a BOI report in Arizona for commercial vehicles.
Can I file a BOI report in Arizona if there were no injuries in the accident?
Yes, you should still file a BOI report in Arizona even if there were no injuries in the accident.
What should I do if the other party refuses to file a BOI report in Arizona?
You can file a BOI report in Arizona on your own and provide as much information as possible about the incident.
Can I file a BOI report in Arizona for a fender bender?
Yes, you should file a BOI report in Arizona for a fender bender to document the incident.
Can filing a BOI report in Arizona help with insurance claims?
Yes, filing a BOI report in Arizona can provide important documentation for insurance claims.
Can I file a BOI report in Arizona if the accident occurred on private property?
Yes, you can still file a BOI report in Arizona if the accident occurred on private property.
Is there a time limit for filing a BOI report in Arizona after the accident?
It is best to file a BOI report in Arizona within 24 hours of the accident if possible.
Can I file a BOI report in Arizona for a parking lot accident?
Yes, you should file a BOI report in Arizona for a parking lot accident to document the incident.
Can I file a BOI report in Arizona if the other party is uncooperative?
Yes, you can still file a BOI report in Arizona even if the other party is uncooperative.
Can I file a BOI report in Arizona if the police have already been involved?
Yes, you should still file a BOI report in Arizona even if the police have already been involved in the accident.
How long does it take for the Arizona Department of Transportation to process a filed BOI report?
The Arizona Department of Transportation typically processes a filed BOI report within a few weeks.

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 Arizona, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Arizona, the companies must understand the obligations to comply with the rules.

In Arizona, 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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