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


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

California, also known as The Golden State, has a population of 40,223,504. 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 California

What is Beneficial Ownership in California?

Beneficial ownership in California 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 California, 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 California 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 California.

BOI Reporting Companies (Entities) in California

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

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

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

Online BOI Report Filing in California

  • For online filing, reporting companies in California 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 California

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

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

BOI Reporting Required Information in California

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

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 California 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 California or forming a corporation in California 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 California.

State Specific Data: California

Capital and Incorporation

  • The capital of California is Sacramento.
  • The population of California: 40,223,504
  • The Annual GDP of California: 3,634,821
  • Incorporation in California can be done through various methods including online and offline. For more details, visit California Secretary of State.
  • Incorporation Method in California (Online): Get the online form from Secretary of State, fill it up, and submit. Don’t refresh the page during the process. It will erase everything.
  • Incorporation Method in California (Offline): Send the form by mail to Secretary of State, Business Entities Filings, P.O. Box 944228, Sacramento, CA 94244. Or drop it off in person to 1500 11th St., 3rd Floor, Sacramento, CA – 95814

Filing Fees

  • LLC Initial Filing Fee: $70
  • LLC Amendment Fees: $30
  • Annual Fee: $10, $20 every 2 years
  • DBA Filing Fee: $26 for filing and $5 for each additional business name.
  • Incorporation Fee: $100 for filing online and by mail. $115 for in person filing
  • Registered Agent Change Fee: $20
  • Corporate Amendment Fee: $30.00

Important Offices

  • State Tax Office: California Franchise Tax Board
  • State Insurance Office: California Department of Insurance
  • Secretary of State Address: Secretary of State, Business Entities Filings, P.O. Box 944228, Sacramento, CA 94244
  • 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: two methods, online and by mail
  • Filing Fee for DBA: $26 for filing and $5 for each additional business name.
  • Online Filing for DBA: Check the California SOS website for the forms or city/county sites for the same
  • Offline Filing for DBA: Check California Secretary of State website for the PDF Form

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

FAQs

Where can I file a boi report in California?
You can file a boi report in California with the California Department of Industrial Relations.
What information is required to file a boi report in California?
The information required to file a boi report in California includes details of the incident, names of individuals involved, and any witnesses.
Is there a deadline for filing a boi report in California?
Yes, in California, boi reports should be filed within 5 days of the incident.
Can I file a boi report online in California?
Yes, you can file a boi report online in California through the Cal/OSHA website.
Does California require employers to report all workplace injuries?
Yes, California law mandates that all workplace injuries, illnesses, and fatalities be reported.
What happens after I file a boi report in California?
After filing a boi report in California, an investigation may be conducted by Cal/OSHA to determine the cause of the incident.
How long does it take for Cal/OSHA to investigate a boi report in California?
The length of time for Cal/OSHA to investigate a boi report in California varies depending on the complexity of the case.
Can I appeal a decision made regarding my boi report in California?
Yes, in California, you have the right to appeal a decision made regarding your boi report.
Are there specific laws in California regarding boi reporting?
Yes, California has specific laws outlined in the Labor Code pertaining to boi reporting.
How can I obtain a copy of my boi report in California?
You can request a copy of your boi report in California from Cal/OSHA through a public records request.
Can I file a boi report anonymously in California?
Yes, you have the option to file a boi report anonymously in California.
Do I need legal representation to file a boi report in California?
It is not required to have legal representation to file a boi report in California, but it can be helpful in ensuring your rights are protected.
What are the consequences of not filing a boi report in California?
Failure to file a boi report in California can result in penalties and fines for non-compliance with state law.
Can I file a boi report on behalf of someone else in California?
Yes, you can file a boi report on behalf of someone else in California if they are unable to do so themselves.
Are there resources available to help me file a boi report in California?
Yes, the California Department of Industrial Relations offers resources and guidance on how to file a boi report.
Can I report a boi incident that occurred outside of California?
You should report a boi incident that occurred in California but if it happened outside the state, you should report it to the appropriate agency.
What training is available for employers on boi reporting in California?
California employers can access training materials provided by Cal/OSHA on boi reporting requirements.
Is there a hotline I can call to report a boi incident in California?
Yes, you can call the Cal/OSHA hotline to report a boi incident in California.
Do I need to provide documentation when filing a boi report in California?
Yes, it is helpful to provide any documentation or evidence related to the boi incident when filing a report in California.
How can I follow up on the status of my boi report in California?
You can contact Cal/OSHA directly to follow up on the status of your boi report in California.
Can I request a workplace inspection as part of my boi report in California?
Yes, you can request a workplace inspection as part of your boi report in California.
Are there any exemptions to boi reporting requirements in California?
There are specific exemptions outlined in California law for certain industries that are not required to report all boi incidents.
What protections are in place for whistleblowers who file boi reports in California?
California law protects whistleblowers from retaliation for filing boi reports by their employers.
Can I update my boi report in California after it has been filed?
If you need to update your boi report in California with new information, you should contact Cal/OSHA.
Are boi reports in California confidential?
Boi reports in California are confidential and protected from disclosure under state law.
Can I request a copy of the boi report filed by my employer in California?
Yes, you can request a copy of the boi report filed by your employer in California through a public records request.
What are my rights as an employee when it comes to reporting boi incidents in California?
California law provides protections and rights for employees who report boi incidents, including protection from retaliation.
Can I file a boi report if I am an independent contractor in California?
Yes, independent contractors can file boi reports in California and are afforded the same protections as employees.
How do I report a boi incident in California if it occurred at a temporary worksite?
If a boi incident occurred at a temporary worksite in California, you should report it to the appropriate agency overseeing workplace safety.
How do I file a BOI report in California?
To file a BOI report in California, you can visit the California Department of Insurance website.
Is filing a BOI report in California mandatory?
Yes, in California, filing a BOI report is mandatory for certain events, such as accidents or incidents involving insurance.
Can I submit a BOI report online in California?
Yes, you can submit a BOI report online through the California Department of Insurance website.
What information do I need to include in a BOI report in California?
In California, you will need to include details such as the date of the incident, names of parties involved, and a description of what occurred.
How long do I have to file a BOI report in California after an incident?
In California, it is recommended to file a BOI report as soon as possible after an incident, but there may be specific deadlines depending on the situation.
Can I file a BOI report anonymously in California?
In some cases, you may be able to file a BOI report anonymously in California, but it is best to check with the California Department of Insurance for guidance.
Are there any fees associated with filing a BOI report in California?
There may be fees associated with filing a BOI report in California, so it is advisable to verify this with the California Department of Insurance.
What happens after I file a BOI report in California?
After filing a BOI report in California, the Department of Insurance will review the information and may investigate further if necessary.
How can I check the status of my BOI report in California?
You can check the status of your BOI report in California by contacting the California Department of Insurance or checking online if available.
Can I cancel a BOI report filed in California?
Generally, once a BOI report is filed in California, it cannot be canceled, but you can contact the Department of Insurance for further guidance.
What is the purpose of filing a BOI report in California?
The purpose of filing a BOI report in California is to document and report insurance-related incidents or events for regulatory purposes.
Are there specific forms required to file a BOI report in California?
Yes, there may be specific forms required to file a BOI report in California, which can be found on the Department of Insurance website.
Can I report fraud through a BOI report in California?
Yes, you can report suspected fraud through a BOI report in California, which may prompt further investigation by the Department of Insurance.
How long does it take for a BOI report to be processed in California?
The processing time for a BOI report in California can vary depending on the complexity of the case and any additional investigation required.
Will filing a BOI report in California impact my insurance premiums?
Filing a BOI report in California may not directly impact your insurance premiums, but any resulting claims or investigations could potentially affect future rates.
Can I file a BOI report for someone else in California?
In California, you can file a BOI report on behalf of someone else with their consent, especially in cases where they are unable to do so themselves.
What is the difference between a BOI report and a police report in California?
A BOI report in California specifically deals with insurance-related incidents, while a police report is typically filed for criminal activities or accidents involving law enforcement.
Can I request a copy of my BOI report in California?
Yes, you can request a copy of your BOI report in California, typically by contacting the California Department of Insurance or submitting a formal request.
Are there any consequences for not filing a BOI report in California?
Failure to file a BOI report when required in California could result in penalties or consequences depending on the specific circumstances and the importance of reporting the event.
What types of incidents require a BOI report in California?
In California, various incidents such as accidents, insurance fraud, or other events that involve insurance coverage may require filing a BOI report.
Can I file a BOI report for a minor in California?
Yes, you can file a BOI report for a minor in California if they are involved in an insurance-related incident and need to document the occurrence.
Are there any specific deadlines for filing a BOI report in California?
Yes, there may be specific deadlines for filing a BOI report in California depending on the type of incident or event that occurred, so it is important to act promptly.
Will my identity be protected when filing a BOI report in California?
In California, efforts are made to protect the identity of individuals filing BOI reports, especially in cases where anonymity is requested or necessary.
Can I provide additional evidence with my BOI report in California?
Yes, you can provide additional evidence or documentation to support your BOI report in California, which may help the Department of Insurance in their review.
Can I file a BOI report for a past incident in California?
It is generally possible to file a BOI report for a past incident in California, but there may be limitations depending on the specific circumstances and deadlines for reporting.
Can I appeal decisions related to my BOI report in California?
If you disagree with decisions made regarding your BOI report in California, you may have the option to appeal or seek further review through the appropriate channels.
Will my insurance company be notified when I file a BOI report in California?
In many cases, your insurance company will be notified when you file a BOI report in California, especially if the incident directly involves your policy or coverage.
How can I ensure that my BOI report is accurate and complete in California?
To ensure your BOI report is accurate and complete in California, take the time to gather all relevant information and details related to the incident before submitting the report.
Can I seek legal advice when filing a BOI report in California?
Yes, you can seek legal advice or guidance when filing a BOI report in California, especially if you have questions about your rights or responsibilities in the process.

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

In California, 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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