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


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

Kentucky, also known as The Bluegrass State, has a population of 4,555,777. 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 Kentucky

What is Beneficial Ownership in Kentucky?

Beneficial ownership in Kentucky 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 Kentucky, 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 Kentucky 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 Kentucky.

BOI Reporting Companies (Entities) in Kentucky

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

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

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

Online BOI Report Filing in Kentucky

  • For online filing, reporting companies in Kentucky 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 Kentucky

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

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

BOI Reporting Required Information in Kentucky

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

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 Kentucky 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 Kentucky or forming a corporation in Kentucky 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 Kentucky.

State Specific Data: Kentucky

Capital and Incorporation

  • The capital of Kentucky is Frankfort.
  • The population of Kentucky: 4,555,777
  • The Annual GDP of Kentucky: 262,439
  • Incorporation in Kentucky can be done through various methods including online and offline. For more details, visit Kentucky Secretary of State.
  • Incorporation Method in Kentucky (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 Kentucky (Offline): Send the form by mail to Michael G. Adams, Office of the Secretary of State, P.O. Box 718, Frankfort, KY 40602

Filing Fees

  • LLC Initial Filing Fee: $40
  • LLC Amendment Fees: $20
  • Annual Fee: $15
  • DBA Filing Fee: $20
  • Incorporation Fee: $40 for filing online and by mail
  • Registered Agent Change Fee: $10
  • Corporate Amendment Fee: $40.00

Important Offices

  • State Tax Office: Kentucky Department of Revenue
  • State Insurance Office: Kentucky Department of Insurance
  • Secretary of State Address: Michael G. Adams, Office of the Secretary of State, P.O. Box 718, Frankfort, KY 40602
  • 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, by mail and in person.
  • Filing Fee for DBA: $20
  • Online Filing for DBA: There is no online filing available
  • Offline Filing for DBA: For filing offline, you must send the downloaded PDF form to the Office of the Secretary of State, P.O. Box 718, Frankfort, KY 40602-0718 or drop it off in person at the Room 154, Capitol Building, Office of the Secretary of State, 700 Capital Avenue, Frankfort, KY 40601

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

FAQs

How do I file a BOI report in Kentucky?
You can file a BOI report in Kentucky by submitting it online through the Kentucky Board of Insurance website.
Is filing a BOI report in Kentucky mandatory for all insurance companies?
Yes, all insurance companies operating in Kentucky are required to file a BOI report.
What information do I need to include in a BOI report in Kentucky?
A BOI report in Kentucky typically includes financial information, premium data, and details about claim activity.
When is the deadline to file a BOI report in Kentucky?
The deadline to file a BOI report in Kentucky is typically June 1st of each year.
Can I request an extension for filing my BOI report in Kentucky?
Yes, you can request an extension for filing your BOI report in Kentucky by contacting the Kentucky Board of Insurance.
What are the consequences of not filing a BOI report in Kentucky?
Failure to file a BOI report in Kentucky may result in penalties or fines for noncompliance.
How can I access the necessary forms for filing a BOI report in Kentucky?
You can access the necessary forms for filing a BOI report in Kentucky on the Kentucky Board of Insurance website.
Can I submit my BOI report in Kentucky by mail?
Yes, you can submit your BOI report in Kentucky by mail if you prefer not to file it online.
Are there any fees associated with filing a BOI report in Kentucky?
Yes, there may be filing fees associated with submitting a BOI report in Kentucky, depending on the type of report being filed.
Can I file a BOI report in Kentucky on behalf of another insurance company?
No, only authorized representatives of an insurance company can file a BOI report in Kentucky on its behalf.
How can I check the status of my BOI report in Kentucky?
You can check the status of your BOI report in Kentucky by contacting the Kentucky Board of Insurance directly.
What should I do if I need to make corrections to my BOI report in Kentucky?
If you need to make corrections to your BOI report in Kentucky, you should contact the Kentucky Board of Insurance to request a modification.
Are independent insurance agents required to file a BOI report in Kentucky?
No, independent insurance agents are typically not required to file a BOI report in Kentucky unless otherwise specified.
Can I file a BOI report in Kentucky online if I am an out-of-state insurance company?
Yes, out-of-state insurance companies can file a BOI report in Kentucky online through the Kentucky Board of Insurance website.
Can I file a combined BOI report for multiple insurance companies in Kentucky?
No, each insurance company must file a separate BOI report in Kentucky.
What should I do if I am having trouble accessing the online filing system for BOI reports in Kentucky?
If you are experiencing technical difficulties with the online filing system for BOI reports in Kentucky, you should contact the Kentucky Board of Insurance for assistance.
Is there a specific format or template that I need to use when filing a BOI report in Kentucky?
Yes, the Kentucky Board of Insurance provides a specific format or template that must be used when filing a BOI report in Kentucky.
Do I need to include supporting documentation with my BOI report in Kentucky?
Yes, you may be required to include supporting documentation with your BOI report in Kentucky, depending on the information being reported.
Can I request a waiver for filing a BOI report in Kentucky if my insurance company is no longer active in the state?
Yes, you can request a waiver for filing a BOI report in Kentucky if your insurance company is no longer active in the state.
Can I file a BOI report in Kentucky on behalf of an insurance agency that operates in multiple states?
No, each state typically requires separate BOI reports to be filed for insurance agencies that operate in multiple states, including Kentucky.
How long does it take to process a BOI report in Kentucky after it has been submitted?
The processing time for a BOI report in Kentucky may vary depending on the volume of reports being filed, but you can typically expect a response within a few weeks.
Can I amend my BOI report in Kentucky after it has already been submitted?
Yes, you can request to amend your BOI report in Kentucky if you need to make changes or corrections after submitting it.
Will I receive confirmation that my BOI report has been successfully filed in Kentucky?
Yes, you should receive confirmation that your BOI report has been successfully filed in Kentucky after submitting it through the online portal.
Are there any specific reporting requirements for reinsurance companies filing a BOI report in Kentucky?
Yes, reinsurance companies may have additional reporting requirements when filing a BOI report in Kentucky, so it is important to review the guidelines provided by the Kentucky Board of Insurance.
Can I file a consolidated BOI report for multiple insurance entities under a holding company in Kentucky?
Yes, you may be able to file a consolidated BOI report for multiple insurance entities under a holding company in Kentucky, but you should verify with the Kentucky Board of Insurance.
Can I file a late BOI report in Kentucky without incurring any penalties?
No, filing a late BOI report in Kentucky may result in penalties or fines, so it is important to submit your report by the deadline.
How can I find more information about filing a BOI report in Kentucky if I have additional questions?
If you have additional questions about filing a BOI report in Kentucky, you can contact the Kentucky Board of Insurance directly for more information and assistance.
Is there a deadline for filing a BOI report in Kentucky?
Yes, there is a deadline for filing a BOI report in Kentucky. It is important to file your claim within the specified timeframe to ensure it is properly processed.
Can I file a BOI report in Kentucky online?
Yes, you can file a BOI report in Kentucky online through the Kentucky Board of Claims website.
How long does it take to process a BOI report in Kentucky?
The processing time for a BOI report in Kentucky can vary depending on the complexity of the case, but it is generally a few weeks to a few months.
What happens after I file a BOI report in Kentucky?
After you file a BOI report in Kentucky, the Board of Claims will review your claim and determine if you are eligible for compensation.
Can I appeal a decision on my BOI report in Kentucky?
Yes, you can appeal a decision on your BOI report in Kentucky by submitting a request for reconsideration to the Board of Claims.
Can I file a BOI report in Kentucky on behalf of someone else?
Yes, you can file a BOI report in Kentucky on behalf of someone else if you have their consent or are their legal representative.
What should I do if my BOI report in Kentucky is denied?
If your BOI report in Kentucky is denied, you may want to consult with an attorney to discuss your options for appealing the decision.
Are there specific types of incidents that qualify for a BOI report in Kentucky?
In Kentucky, incidents involving negligence, misconduct, or wrongdoing by a government agency or employee may qualify for a BOI report.
What evidence should I include in my BOI report in Kentucky?
When filing a BOI report in Kentucky, it is important to include any relevant evidence such as photos, medical records, witness statements, and other documentation to support your claim.
Can I file a BOI report in Kentucky if the incident occurred in another state?
No, you can only file a BOI report in Kentucky for incidents that occurred within the state.
Is there a time limit for filing a BOI report in Kentucky after an incident occurs?
Yes, there is a time limit for filing a BOI report in Kentucky after an incident occurs. It is important to file your claim within the specified timeframe.
Do I need an attorney to file a BOI report in Kentucky?
While you are not required to have an attorney to file a BOI report in Kentucky, it may be beneficial to seek legal counsel, especially if your claim is complex.
What is the definition of “BOI” in Kentucky?
BOI stands for Board of Claims in Kentucky, which is the agency responsible for handling claims against the state government.
Can I file a BOI report in Kentucky for a slip and fall accident at a state-owned property?
Yes, you can file a BOI report in Kentucky for a slip and fall accident at a state-owned property if you believe negligence was involved.
How do I know if my incident qualifies for a BOI report in Kentucky?
To determine if your incident qualifies for a BOI report in Kentucky, you should review the criteria set forth by the Board of Claims and consult with an attorney if necessary.
What types of compensation can I receive through a BOI report in Kentucky?
If your BOI report in Kentucky is approved, you may be eligible to receive compensation for medical expenses, lost wages, pain and suffering, and other damages resulting from the incident.
Can I file a BOI report in Kentucky for a car accident involving a state vehicle?
Yes, you can file a BOI report in Kentucky for a car accident involving a state vehicle if you believe the driver was negligent.
How do I submit supporting documents for my BOI report in Kentucky?
You can submit supporting documents for your BOI report in Kentucky by either uploading them online or mailing them to the Board of Claims.
What should I do if I have questions about filing a BOI report in Kentucky?
If you have questions about filing a BOI report in Kentucky, you can contact the Board of Claims directly for assistance.
Can I file a BOI report in Kentucky if the incident occurred on private property?
No, you can only file a BOI report in Kentucky for incidents that occurred on state-owned or controlled property.
Are there any restrictions on who can file a BOI report in Kentucky?
In Kentucky, anyone who believes they have been harmed as a result of government negligence or misconduct can file a BOI report.
Can I file a BOI report in Kentucky for an incident that occurred years ago?
Yes, you can file a BOI report in Kentucky for an incident that occurred years ago as long as it falls within the statute of limitations.
What types of incidents are typically covered by a BOI report in Kentucky?
Incidents involving accidents, injuries, property damage, or other harm caused by the actions of a government agency or employee may qualify for a BOI report in Kentucky.
Can I file a BOI report in Kentucky if I was partially at fault for the incident?
Yes, you can still file a BOI report in Kentucky if you were partially at fault for the incident, but your compensation may be reduced based on your level of fault.
How long do I have to file a BOI report in Kentucky after discovering the incident?
It is important to file a BOI report in Kentucky as soon as possible after discovering the incident, as there is a deadline for filing claims.

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

In Kentucky, 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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