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


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

DC, also known as The Nation’s Capital, has a population of 715,891. 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 DC

What is Beneficial Ownership in DC?

Beneficial ownership in DC 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 DC, 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 DC 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 DC.

BOI Reporting Companies (Entities) in DC

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

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

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

Online BOI Report Filing in DC

  • For online filing, reporting companies in DC 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 DC

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

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

BOI Reporting Required Information in DC

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

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 DC 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 DC or forming a corporation in DC 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 DC.

State Specific Data: DC

Capital and Incorporation

  • The capital of DC is Washington DC.
  • The population of DC: 715,891
  • The Annual GDP of DC: 163,150
  • Incorporation in DC can be done through various methods including online and offline. For more details, visit DC Secretary of State.
  • Incorporation Method in DC (Online): Create an account/Log in to the SOS site, get the e-form, fill it, and submit online. Or get the online PDF, fill it up and upload it back on the site.
  • Incorporation Method in DC (Offline): Send the form by mail to Department of Consumer and Regulatory Affairs, Corporations Division, P.O. Box 92300, Washington, D.C. 20090

Filing Fees

  • LLC Initial Filing Fee: $220
  • LLC Amendment Fees: $220
  • Annual Fee: $150
  • DBA Filing Fee: $55
  • Incorporation Fee: $220 for filing online and by mail filing
  • Registered Agent Change Fee: $50
  • Corporate Amendment Fee: $220.00

Important Offices

  • State Tax Office: Office of Tax and Revenue
  • State Insurance Office: Department of Insurance, Securities and Banking
  • Secretary of State Address: Department of Consumer and Regulatory Affairs, Corporations Division, P.O. Box 92300, Washington, D.C. 20090
  • Department of Treasury: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734​

Key Contacts

  • Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734​
  • Filing Method for DBA: two methods, online and by mail
  • Filing Fee for DBA: $55
  • Online Filing for DBA: For online filing, check the Washington DC Secretary of State. There, look for the “Trade Names” section. You will get the registration form.
  • Offline Filing for DBA: For filing by mail, you must download the form, and send it to the Department of Licensing and Consumer Protection, Corporations Division, P.O. Box 92300, Washington, DC 20090

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

FAQs

How do I file a BOI report in DC?
You can file a BOI report in DC by visiting the Office of the Attorney General website.
Is filing a BOI report in DC mandatory?
Filing a BOI report in DC is not mandatory, but it is recommended if you have witnessed behavior that may be a violation of the law.
Can I file a BOI report in DC anonymously?
Yes, you can file a BOI report in DC anonymously if you choose to do so.
What information do I need to include in a BOI report in DC?
When filing a BOI report in DC, you will need to provide detailed information about the incident or behavior you are reporting.
How long does it take to file a BOI report in DC?
Filing a BOI report in DC should only take a few minutes to complete online.
Can I file a BOI report in DC for someone else?
Yes, you can file a BOI report in DC on behalf of someone else if they are unable to do so themselves.
What happens after I file a BOI report in DC?
After you file a BOI report in DC, the Office of the Attorney General will investigate the report and take appropriate action.
Do I need to provide evidence when filing a BOI report in DC?
It is helpful to provide any evidence you have when filing a BOI report in DC, but it is not required.
How can I follow up on a BOI report in DC?
You can follow up on a BOI report in DC by contacting the Office of the Attorney General for updates on the investigation.
Can I file a BOI report in DC for any type of incident?
You can file a BOI report in DC for a wide range of incidents or behaviors that you believe are violations of the law.
Is there a deadline for filing a BOI report in DC?
It is best to file a BOI report in DC as soon as possible after witnessing or experiencing an incident that you believe should be reported.
What should I do if I have additional information after filing a BOI report in DC?
If you have additional information after filing a BOI report in DC, you can contact the Office of the Attorney General to provide it.
Can I file a BOI report in DC online?
Yes, you can file a BOI report in DC online through the Office of the Attorney General’s website.
Will I receive updates on the status of my BOI report in DC?
You may receive updates on the status of your BOI report in DC from the Office of the Attorney General as the investigation progresses.
Can I file a BOI report in DC if I am a minor?
Yes, minors can file a BOI report in DC with the assistance of a parent or guardian.
What should I do if I witness a crime in DC and want to file a BOI report?
If you witness a crime in DC, you should file a BOI report with the Office of the Attorney General as soon as possible.
Can I file a BOI report in DC for incidents that occurred outside of the district?
You should file a BOI report in DC for incidents that occurred within the district. It is best to contact the appropriate authorities in other locations for incidents outside of DC.
Is there a fee for filing a BOI report in DC?
There is no fee for filing a BOI report in DC. It is a free service provided by the Office of the Attorney General.
Can I file a BOI report in DC for workplace harassment?
Yes, you can file a BOI report in DC for workplace harassment or any other form of misconduct.
How is the confidentiality of a BOI report in DC maintained?
The Office of the Attorney General makes every effort to maintain the confidentiality of BOI reports in DC to protect the privacy of those involved.
Can I file a BOI report in DC for discrimination?
Yes, you can file a BOI report in DC for discrimination based on race, gender, age, or any other protected characteristics.
Can I file a BOI report in DC for animal cruelty?
Yes, you can file a BOI report in DC for animal cruelty or any other form of abuse or neglect.
Can I file a BOI report in DC for fraud or financial scams?
Yes, you can file a BOI report in DC for fraud, financial scams, or any other form of financial misconduct.
Can I file a BOI report in DC for environmental violations?
Yes, you can file a BOI report in DC for environmental violations or any other offenses that harm the environment.
Can I file a BOI report in DC for public safety concerns?
Yes, you can file a BOI report in DC for public safety concerns such as suspicious activities, vandalism, or other threats to safety.
Can I file a BOI report in DC for police misconduct?
Yes, you can file a BOI report in DC for police misconduct or any other inappropriate behavior by law enforcement officers.
Can I file a BOI report in DC for violations of DC laws and regulations?
Yes, you can file a BOI report in DC for violations of DC laws and regulations that you believe should be addressed by the authorities.
Can I file a BOI report in DC for child abuse or neglect?
Yes, you can file a BOI report in DC for child abuse, neglect, or any other form of mistreatment of children.
Can I file a BOI report in DC for elder abuse or neglect?
Yes, you can file a BOI report in DC for elder abuse, neglect, or any other mistreatment of older adults.
What is the purpose of filing a BOI report in DC?
Filing a BOI report in DC helps ensure that businesses are operating legally and following regulations.
Can I file a BOI report online in DC?
Yes, DCRA offers an online portal for businesses to file their BOI reports electronically.
What information do I need to include in my BOI report in DC?
When filing a BOI report in DC, you will need to provide details about your business, such as its location, ownership, and activities.
Are there any fees associated with filing a BOI report in DC?
Yes, there is typically a fee required to file a BOI report in DC.
How can I check the status of my BOI report in DC?
You can contact DCRA to inquire about the status of your BOI report filing.
What are the consequences of not filing a BOI report in DC?
Failure to file a BOI report in DC can result in penalties or fines for non-compliance.
Can I file a BOI report for multiple businesses in DC?
Yes, you can file separate BOI reports for each business entity in DC.
Is it necessary to renew my BOI report filing in DC every year?
Yes, businesses in DC are typically required to renew their BOI report filing annually.
How long does it take to process a BOI report in DC?
The processing time for a BOI report in DC can vary, but typically takes a few weeks.
Can I file a BOI report in person in DC?
Yes, businesses have the option to file their BOI report in person at the DCRA office.
Are there any exceptions to filing a BOI report in DC?
Some businesses in DC may be exempt from filing a BOI report, depending on their operations.
What types of businesses are required to file a BOI report in DC?
Most businesses operating in DC, including corporations, partnerships, and LLCs, are required to file a BOI report.
Can I amend my BOI report filing in DC after submission?
Yes, you can make amendments to your BOI report in DC if necessary.
Does filing a BOI report in DC require a physical inspection of the business premises?
Usually, a physical inspection of the business premises is not required to file a BOI report in DC.
Can I submit supporting documents along with my BOI report in DC?
Yes, you may need to provide supporting documents such as leases, licenses, or certifications with your BOI report in DC.
Is there a specific form to use when filing a BOI report in DC?
DCRA provides businesses with a specific form to use when filing their BOI report in DC.
Can I schedule an appointment to file my BOI report in DC?
Yes, you can schedule an appointment with DCRA to file your BOI report in person.
What is the best way to contact DCRA for questions about filing a BOI report in DC?
You can contact DCRA either by phone or email for inquiries about filing a BO1 report in DC.
Can I file my BOI report early in DC?
Yes, businesses are encouraged to file their BOI report early in DC to avoid last-minute delays.
Are non-profit organizations required to file a BOI report in DC?
Non-profit organizations are typically exempt from filing a BOI report in DC.
How can I pay the filing fee for my BOI report in DC?
You can pay the filing fee for your BOI report in DC online, by mail, or in person.
Can I request an extension for filing my BOI report in DC?
Yes, you may be able to request an extension for filing your BOI report in DC under certain circumstances.
What is the penalty for late filing of a BOI report in DC?
The penalty for late filing of a BOI report in DC may include fines or other enforcement actions.
Can I file a BOI report for a business located outside of DC?
No, BOI reports in DC are typically reserved for businesses operating within the District.
Are there any incentives for businesses that file their BOI report early in DC?
Some jurisdictions in DC may offer incentives for businesses that file their BOI report early, such as expedited processing or discounted fees.
What are the common mistakes to avoid when filing a BOI report in DC?
Common mistakes to avoid when filing a BOI report in DC include inaccurate information, missing deadlines, and not providing required documentation.

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

In DC, 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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