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


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How to file a BOI Report in Michigan: 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 Michigan, 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.

Michigan, also known as The Great Lakes State, has a population of 10,135,438. 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 Michigan

What is Beneficial Ownership in Michigan?

Beneficial ownership in Michigan 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 Michigan, 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 Michigan 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 Michigan.

BOI Reporting Companies (Entities) in Michigan

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

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

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

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Online BOI Report Filing in Michigan

  • Step 1: For online filing, reporting companies in Michigan are required to visit the FinCEN BOIR e-filing page.
  • Step 2: The first page shows 4 options, Initial Report, Correct Prior Report, Update Prior Report, and Newly Exempt Entity.
  • Step 3: For the fresh filing, select Initial Report and click NEXT.
  • Step 4: On the next page, fill out the form for Reporting Company and ask for FinCEN ID.
  • Step 5: The ‘Company Applicant’ page comes up next. Add the details wherever is required.
  • Step 6: The next page shows the details of the Beneficial Owner(s). Also, mention if there is an exemption.
  • Step 7: Submit the online form after sharing your name and email on the final page.
BOI reporting e-filing

Offline BOI Report Filing in Michigan

  • Step 1: For offline filing, visit the FinCEN BOI Report filing page
  • Step 2: Download the PDF form from the ‘Prepare BOIR’ option
  • Step 3: The PDF form requires Adobe Reader 8 or higher, make sure you have this version installed on your device.
  • Step 4: Save the form on your device.
  • Step 5: 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.
  • Step 6: Once filled up, upload the form on the site by clicking on ‘Submit BOIR’.
  • Step 7: 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

Reporting Process and Timeline

BOI Reporting effectively becomes mandatory from January 1, 2024, in Michigan and the rest of the United States. All the LLCs in Michigan, Corporations, and other types of businesses registered under Michigan Secretary of State will have to file the report within the given time.

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

BOI Reporting Required Information in Michigan

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

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 Michigan 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 Michigan or forming a corporation in Michigan 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 Michigan.

State Specific Data: Michigan

Capital and Incorporation

  • The capital of Michigan is Lansing.
  • The population of Michigan: 10,135,438
  • The Annual GDP of Michigan: 626,680
  • Incorporation in Michigan can be done through various methods including online and offline. For more details, visit Michigan Secretary of State.
  • Incorporation Method in Michigan (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 Michigan (Offline): Send the form by mail to Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau — Corporations Division, P.O. Box 30054, Lansing, MI 48909. Drop it off in person at 2501 Woodlake Circle, Okemos, MI

Filing Fees

  • LLC Initial Filing Fee: $50
  • LLC Amendment Fees: $25
  • Annual Fee: $25
  • DBA Filing Fee: $25 for LLCs and $10 for LPs
  • Incorporation Fee: $60 for filing online, in person, and by mail
  • Registered Agent Change Fee: $5
  • Corporate Amendment Fee: $25

Important Offices

  • State Tax Office: Michigan Department of Treasury
  • State Insurance Office: Michigan Department of Insurance and Financial Services
  • Secretary of State Address: Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau — Corporations Division, P.O. Box 30054, Lansing, MI 48909
  • 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: $25 for LLCs and $10 for LPs
  • Online Filing for DBA: For online filing, check the Michigan Corporations Online Filing. 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 to the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau, Corporations Division, P.O. Box 30054, Lansing, MI 48909 or drop it off in person at the 2501 Woodlake Circle, Okemos, MI

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

FAQs

How do I file a BOI report in Michigan?
To file a BOI report in Michigan, you can go online to the Michigan Department of Insurance and Financial Services website and follow the instructions.
Do I need to file a BOI report in Michigan if I suspect insurance fraud?
Yes, if you suspect insurance fraud in Michigan, it is important to file a BOI report to help investigate and prevent fraudulent activities.
What information do I need to include in a BOI report in Michigan?
When filing a BOI report in Michigan, you will need to provide details about the incident, any evidence you have, and contact information for yourself.
Is there a deadline for filing a BOI report in Michigan?
While there may not be a strict deadline for filing a BOI report in Michigan, it is important to file as soon as possible to aid in the investigation process.
Can I file a BOI report anonymously in Michigan?
Yes, you can file a BOI report anonymously in Michigan if you have concerns about retaliation or privacy.
What happens after I file a BOI report in Michigan?
After filing a BOI report in Michigan, the Department of Insurance and Financial Services will investigate the allegations and take appropriate action if necessary.
How can I follow up on a BOI report in Michigan?
You can follow up on a BOI report in Michigan by contacting the Department of Insurance and Financial Services for updates on the investigation.
What are the consequences of filing a false BOI report in Michigan?
Filing a false BOI report in Michigan can result in legal consequences, so it is important to provide accurate and truthful information when filing a report.
Can I file a BOI report in Michigan if I am not a resident?
Yes, you can file a BOI report in Michigan even if you are not a resident, as long as the incident occurred within the state.
Are there resources available to help me file a BOI report in Michigan?
Yes, there are resources available in Michigan to assist you with filing a BOI report, such as the Department of Insurance and Financial Services website and hotline.
Can I file a BOI report in Michigan for any type of insurance fraud?
Yes, you can file a BOI report in Michigan for any type of insurance fraud, including health insurance fraud, car insurance fraud, and more.
What protections are in place for whistleblowers who file a BOI report in Michigan?
In Michigan, there are protections in place for whistleblowers who file BOI reports, including confidentiality and safeguards against retaliation.
What is the role of the Michigan Department of Insurance and Financial Services in investigating BOI reports?
The Michigan Department of Insurance and Financial Services is responsible for investigating BOI reports and taking appropriate action in cases of insurance fraud.
Can I file a BOI report in Michigan if I suspect my insurance provider of fraud?
Yes, you can file a BOI report in Michigan if you suspect your insurance provider of fraud, as it is important to report any suspicious behavior.
How long does it typically take to investigate a BOI report in Michigan?
The time it takes to investigate a BOI report in Michigan can vary depending on the complexity of the case, but the Department of Insurance and Financial Services will work diligently to resolve the issue.
Are there any legal ramifications for failing to file a BOI report in Michigan?
While there may not be direct legal ramifications for failing to file a BOI report in Michigan, it is important to report any suspected fraud to help protect consumers and prevent future incidents.
Can I file a BOI report in Michigan if I am not sure if fraud has occurred?
Yes, you can file a BOI report in Michigan even if you are not certain that fraud has occurred, as it is better to report suspicious activity for investigation.
Where can I find more information about filing a BOI report in Michigan?
For more information about filing a BOI report in Michigan, you can visit the Michigan Department of Insurance and Financial Services website or contact their office directly.
Can I file a BOI report in Michigan for a past incident?
Yes, you can file a BOI report in Michigan for a past incident, as long as it occurred within the state and you have relevant information to provide.
Are there any fees associated with filing a BOI report in Michigan?
There are typically no fees associated with filing a BOI report in Michigan, as it is a free service provided to help combat insurance fraud.
Can I file a BOI report in Michigan if I am not a policyholder?
Yes, you can file a BOI report in Michigan even if you are not a policyholder, as long as you have information about potential fraud.
What role can insurance agents play in assisting with filing a BOI report in Michigan?
Insurance agents in Michigan can help provide guidance on how to file a BOI report and assist with gathering necessary information for the report.
Can I file a BOI report in Michigan online?
Yes, you can file a BOI report online in Michigan through the Department of Insurance and Financial Services website for added convenience.
Can I file a BOI report in Michigan for a neighbor’s suspected insurance fraud?
Yes, you can file a BOI report in Michigan for suspected insurance fraud involving your neighbor if you have evidence or information to support your claim.
Are there specific guidelines for filing a BOI report in Michigan?
While there are general guidelines for filing a BOI report in Michigan, it is important to provide as much detail and documentation as possible to aid in the investigation.
Can I file a BOI report in Michigan if I am a victim of insurance fraud?
Yes, if you are a victim of insurance fraud in Michigan, it is important to file a BOI report to help prevent future fraud and potentially recover losses.
Can I file a BOI report in Michigan for suspected arson?
Yes, you can file a BOI report in Michigan for suspected arson, as insurance fraud investigations can encompass a range of fraudulent activities.
What should I do if I receive a subpoena related to a BOI report in Michigan?
If you receive a subpoena related to a BOI report in Michigan, it is important to comply with the legal requirements and provide the requested information to aid in the investigation.
Can I file a BOI report in person in Michigan?
Yes, you can file a BOI report in person at the Michigan Department of State offices.
What information do I need to include in my BOI report in Michigan?
You will need to include details about the incident, your contact information, and any supporting documents in your BOI report in Michigan.
How long does it take to process a BOI report in Michigan?
The processing time for a BOI report in Michigan can vary depending on the complexity of the case and the workload of the department.
Can I track the status of my BOI report in Michigan?
Yes, you may be able to track the status of your BOI report in Michigan through the online portal or by contacting the relevant department.
Can I amend my BOI report in Michigan after submission?
It may be possible to amend your BOI report in Michigan if new information comes to light, but you should contact the department handling your case for guidance.
What should I do if I receive a request for additional information about my BOI report in Michigan?
If you receive a request for additional information about your BOI report in Michigan, promptly provide the requested details to facilitate the investigation.
Can I file a BOI report on behalf of someone else in Michigan?
You may be able to file a BOI report on behalf of someone else in Michigan with their permission and proper documentation.
Will my identity be protected when filing a BOI report in Michigan?
Efforts are made to protect the identities of individuals who file BOI reports in Michigan, but anonymity cannot be guaranteed in all cases.
What types of incidents can be reported through a BOI report in Michigan?
Various types of incidents, including fraud, misconduct, and abuse, can be reported through a BOI report in Michigan.
Can I file a BOI report about a government agency in Michigan?
Yes, you can file a BOI report about a government agency in Michigan if you have concerns about their conduct or practices.
How do I know if my BOI report in Michigan has been received?
You should receive a confirmation or acknowledgment when your BOI report is submitted in Michigan, providing you with a reference number to track its progress.
What happens if I file a false BOI report in Michigan?
Filing a false BOI report in Michigan is a serious offense and may result in legal consequences.
Is my BOI report in Michigan confidential?
Your BOI report in Michigan is treated as confidential to the extent permitted by law, but information may be disclosed as necessary for investigations.
Can I report multiple incidents in a single BOI report in Michigan?
It may be possible to report multiple incidents in a single BOI report in Michigan if they are related or occurred within a similar timeframe.
Do I need legal representation when filing a BOI report in Michigan?
Legal representation is not required when filing a BOI report in Michigan, but you may seek advice from an attorney if needed.
How do I file a follow-up to my initial BOI report in Michigan?
If you have additional information to provide or wish to follow up on your initial BOI report in Michigan, contact the relevant department handling your case.
Can I request a copy of my BOI report in Michigan for my records?
You may be able to request a copy of your BOI report in Michigan for your records, depending on the policies of the department handling your case.
Are there specific forms to fill out when filing a BOI report in Michigan?
The Michigan Department of State website may provide specific forms or instructions for filing a BOI report, depending on the nature of the incident being reported.
What is the purpose of filing a BOI report in Michigan?
The purpose of filing a BOI report in Michigan is to report suspected misconduct, fraud, or abuse so that appropriate actions can be taken to address the issue.
How can I report retaliation after filing a BOI report in Michigan?
If you experience retaliation after filing a BOI report in Michigan, you should report it to the relevant authorities for investigation and protection.
Can I file a BOI report online in Michigan?
Yes, you can file a BOI report online on the Michigan Department of State website, which provides a secure platform for submitting reports.
Are there limitations to what types of incidents can be reported through a BOI report in Michigan?
There may be limitations on the types of incidents that can be reported through a BOI report in Michigan, depending on the jurisdiction and scope of the report.
How can I contact the Michigan Department of State for help with filing a BOI report?
You can contact the Michigan Department of State directly through their website or by phone for assistance with filing a BOI report and addressing any questions or concerns you may have.

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

In Michigan, 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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