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


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

Illinois, also known as The Prairie State, has a population of 12,807,072. 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 Illinois

What is Beneficial Ownership in Illinois?

Beneficial ownership in Illinois 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 Illinois, 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 Illinois 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 Illinois.

BOI Reporting Companies (Entities) in Illinois

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

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

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

Online BOI Report Filing in Illinois

  • For online filing, reporting companies in Illinois 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 Illinois

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

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

BOI Reporting Required Information in Illinois

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

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 Illinois 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 Illinois or forming a corporation in Illinois 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 Illinois.

State Specific Data: Illinois

Capital and Incorporation

  • The capital of Illinois is Springfield.
  • The population of Illinois: 12,807,072
  • The Annual GDP of Illinois: 1,041,663
  • Incorporation in Illinois can be done through various methods including online and offline. For more details, visit Illinois Secretary of State.
  • Incorporation Method in Illinois (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Incorporation Method in Illinois (Offline): Send the form by mail to Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746

Filing Fees

  • LLC Initial Filing Fee: $15
  • LLC Amendment Fees: $50
  • Annual Fee: $75
  • DBA Filing Fee: $50
  • Incorporation Fee: $150 for filing in-person and by mail
  • Registered Agent Change Fee: $25
  • Corporate Amendment Fee: $50

Important Offices

  • State Tax Office: Illinois Department of Revenue
  • State Insurance Office: Illinois Department of Insurance
  • Secretary of State Address: Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746
  • 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: three methods, online, by mail, and in person filing.
  • Filing Fee for DBA: $50
  • Online Filing for DBA: For online filing, check the Illinois Cook County Clerk. There, look for the “Assumed Names” section. You will get the registration form.
  • Offline Filing for DBA: For filing offline, you must send the downloaded PDF form or drop it off in person at the Cook County Clerk, Vital Statistics P.O. Box 641070, Chicago IL, 60664-1070, ATTN: Assumed Name Unit

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

FAQs

How do I file a BOI report in Illinois?
To file a BOI report in Illinois, you can go to the Illinois Department of Financial and Professional Regulation website and follow the instructions.
When is the deadline to file a BOI report in Illinois?
The deadline to file a BOI report in Illinois is typically on or before March 1st each year.
Can I file a BOI report in Illinois online?
Yes, you can file a BOI report in Illinois online through the Illinois Department of Financial and Professional Regulation website.
What information do I need to provide when filing a BOI report in Illinois?
When filing a BOI report in Illinois, you will need to provide information such as licensee details, license numbers, business activity information, and financial data.
Is there a fee to file a BOI report in Illinois?
Yes, there is a fee to file a BOI report in Illinois. The fee amount varies depending on the size of the business.
Can I file a BOI report in Illinois by mail?
Yes, you can file a BOI report in Illinois by mail by sending the necessary documents and fees to the Illinois Department of Financial and Professional Regulation.
What happens if I miss the deadline to file a BOI report in Illinois?
If you miss the deadline to file a BOI report in Illinois, you may be subject to penalties and fines.
Can I request an extension to file a BOI report in Illinois?
Yes, you can request an extension to file a BOI report in Illinois with good cause. You must submit a written request for an extension to the Illinois Department of Financial and Professional Regulation.
How do I report changes to my business information on a BOI report in Illinois?
To report changes to your business information on a BOI report in Illinois, you will need to update the online form or contact the Illinois Department of Financial and Professional Regulation.
Are there any exemptions for filing a BOI report in Illinois?
Certain businesses may be exempt from filing a BOI report in Illinois, such as non-profit organizations or small businesses below a certain threshold.
How long does it take to process a BOI report in Illinois?
The processing time for a BOI report in Illinois can vary, but typically you will receive a confirmation of submission and a receipt within a few business days.
What are the consequences of not filing a BOI report in Illinois?
If you fail to file a BOI report in Illinois, your business may face penalties, fines, and possible suspension of licenses.
Can I file a BOI report for multiple locations in Illinois under one submission?
Yes, you can file a BOI report for multiple locations in Illinois under one submission as long as they are all operated by the same business entity.
Do I need to include financial statements with my BOI report in Illinois?
Yes, you will need to include financial statements with your BOI report in Illinois, such as a balance sheet, profit and loss statement, and other relevant documents.
What if my business has ceased operations in Illinois, do I still need to file a BOI report?
If your business has ceased operations in Illinois, you may still need to file a BOI report to officially notify the state of the closure.
Can I file a BOI report in Illinois for a business that is not yet operational?
Yes, you can file a BOI report in Illinois for a business that is not yet operational as long as you provide projected financial information.
Do I need to file a BOI report in Illinois if my business is inactive?
If your business is inactive in Illinois, you may still need to file a BOI report to maintain compliance with state regulations.
Can I amend a BOI report in Illinois after submission?
Yes, you can amend a BOI report in Illinois after submission by contacting the Illinois Department of Financial and Professional Regulation and providing the necessary updates.
Does the information in a BOI report in Illinois need to be accurate and up to date?
It is essential that the information in a BOI report in Illinois is accurate and up to date to comply with state regulations.
What are some common mistakes to avoid when filing a BOI report in Illinois?
Some common mistakes to avoid when filing a BOI report in Illinois include not providing complete information, missing the deadline, and not paying the required fees.
Can I request a copy of my filed BOI report in Illinois?
Yes, you can request a copy of your filed BOI report in Illinois by contacting the Illinois Department of Financial and Professional Regulation and submitting a formal request.
How can I confirm that my BOI report was successfully filed in Illinois?
You can confirm that your BOI report was successfully filed in Illinois by checking for a confirmation email or receipt from the Illinois Department of Financial and Professional Regulation.
Do I need to keep a copy of my filed BOI report in Illinois for my records?
Yes, it is recommended that you keep a copy of your filed BOI report in Illinois for your records in case you need to reference it in the future.
Can I file a BOI report in Illinois for a business that is located out of state?
If your business is located out of state but conducts activities in Illinois, you may need to file a BOI report in Illinois to stay compliant with state regulations.
What resources are available to help me file a BOI report in Illinois?
Resources available to help you file a BOI report in Illinois include the Illinois Department of Financial and Professional Regulation website, customer service representatives, and online tutorials.
Is there a helpline I can call for assistance with filing a BOI report in Illinois?
Yes, you can contact the Illinois Department of Financial and Professional Regulation’s helpline for assistance with filing a BOI report in Illinois.
Can I cancel a filed BOI report in Illinois once it has been submitted?
It may be difficult to cancel a filed BOI report in Illinois once it has been submitted, so it is important to review all information carefully before submission.
How do I know if my business is required to file a BOI report in Illinois?
You can check the Illinois Department of Financial and Professional Regulation website for guidelines on which businesses are required to file a BOI report in Illinois.
What is a BOI report in Illinois?
A BOI report refers to a Bureau of Investigation report filed in Illinois.
When should I file a BOI report in Illinois?
It is recommended to file a BOI report in Illinois as soon as you become aware of any suspicious activities.
Can I file a BOI report in Illinois anonymously?
Yes, you can file a BOI report in Illinois anonymously if you wish.
Is there a cost to file a BOI report in Illinois?
There is no cost to file a BOI report in Illinois.
What information should I include in a BOI report in Illinois?
You should include as much detailed information as possible in your BOI report in Illinois, including names, dates, and descriptions of events.
Will filing a BOI report in Illinois guarantee an investigation?
Filing a BOI report in Illinois will initiate an investigation, but the outcome and follow-up will depend on the information provided.
Do I need to provide any evidence when filing a BOI report in Illinois?
While evidence is helpful, it is not required to file a BOI report in Illinois.
How long does it take for a BOI report in Illinois to be processed?
The processing time for a BOI report in Illinois can vary depending on the nature of the report and the current caseload of the Illinois State Police.
Can I file a BOI report in Illinois on behalf of someone else?
Yes, you can file a BOI report in Illinois on behalf of someone else if you have their permission to do so.
Are there specific types of incidents that require a BOI report in Illinois?
Any incident that involves potential criminal activity or suspicious behavior should be reported in a BOI report in Illinois.
Can I file a BOI report in Illinois for a non-criminal matter?
Yes, you can file a BOI report in Illinois for any matter that you believe should be investigated by the authorities.
How long will it take for me to receive a response after filing a BOI report in Illinois?
You may receive a response regarding your BOI report in Illinois within a few days to a few weeks, depending on the urgency of the matter.
Are there any limitations on who can file a BOI report in Illinois?
Anyone can file a BOI report in Illinois, regardless of their age or citizenship status.
Can I file a BOI report in Illinois for an incident that occurred outside of the state?
You should file a BOI report in Illinois for incidents that occurred within the state. For incidents outside of Illinois, you should contact the appropriate authorities.
Can I amend a BOI report in Illinois after it has been filed?
Once you have filed a BOI report in Illinois, you may not be able to make amendments. Contact the Illinois State Police for guidance on this matter.
Is filing a BOI report in Illinois confidential?
Information provided in a BOI report in Illinois is treated confidentially to protect the privacy and safety of those involved.
Do I need a lawyer to file a BOI report in Illinois?
You do not need a lawyer to file a BOI report in Illinois, but you may consult with one if you have legal questions or concerns.
Can I file a BOI report in Illinois if I am a minor?
Minors can file a BOI report in Illinois with the assistance of a parent or guardian.
What steps should I take before filing a BOI report in Illinois?
Before filing a BOI report in Illinois, gather all relevant information, organize your thoughts, and be prepared to provide detailed descriptions.
How long does a BOI report in Illinois stay on record?
The length of time a BOI report in Illinois stays on record can vary depending on the nature of the report and any subsequent investigations.
Can I file a BOI report in Illinois for a past incident?
You can file a BOI report in Illinois for a past incident, but it is recommended to do so as soon as possible to ensure the most accurate information is available.
What happens after I file a BOI report in Illinois?
After you file a BOI report in Illinois, the information will be reviewed, and an investigation may be initiated based on the details provided.
How can I follow up on a BOI report in Illinois?
You can follow up on a BOI report in Illinois by contacting the Illinois State Police and inquiring about the status of your report.
Can I request a copy of my BOI report in Illinois?
Yes, you can request a copy of your BOI report in Illinois for your records.
Can I file a BOI report in Illinois if I do not speak English?
The Illinois State Police provides interpretation services for individuals who need assistance filing a BOI report in Illinois.
What protections are in place for individuals who file a BOI report in Illinois?
There are laws in Illinois that protect individuals from retaliation or discrimination for filing a BOI report.
Can I file a BOI report in Illinois for an incident that occurred in a different county?
Yes, you can file a BOI report in Illinois regardless of the county in which the incident occurred.

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

In Illinois, 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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