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


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.

How to file a BOI Report in North Carolina: 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 North Carolina, 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.

North Carolina, also known as The Tar Heel State, has a population of 10,710,558. 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 North Carolina

What is Beneficial Ownership in North Carolina?

Beneficial ownership in North Carolina 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 North Carolina, 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 North Carolina 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 North Carolina.

BOI Reporting Companies (Entities) in North Carolina

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

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

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

Recommended: You can fill up and file the BOI forms easily and without hassle by hiring a professional service. We recommend using –

#1 TOP PICK

TailorBrands(BOI Report Filing)

Online BOI Report Filing in North Carolina

  • Step 1: For online filing, reporting companies in North Carolina 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 North Carolina

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

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

BOI Reporting Required Information in North Carolina

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

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 North Carolina 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 North Carolina or forming a corporation in North Carolina 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 North Carolina.

State Specific Data: North Carolina

Capital and Incorporation

  • The capital of North Carolina is Raleigh.
  • The population of North Carolina: 10,710,558
  • The Annual GDP of North Carolina: 735,924
  • Incorporation in North Carolina can be done through various methods including online and offline. For more details, visit North Carolina Secretary of State.
  • Incorporation Method in North Carolina (Online): Create a wizard on the SOS site, fill out the online form and submit online. Or download the PDF form, fill it up offline and upload it back to the SOS site.
  • Incorporation Method in North Carolina (Offline): Send the form by mail or drop it off in person at The Secretary of State, Business Registration Division, P.O. Box 29622, Raleigh, NC 27626.

Filing Fees

  • LLC Initial Filing Fee: $125
  • LLC Amendment Fees: $50
  • Annual Fee: $200
  • DBA Filing Fee: $26
  • Incorporation Fee: $125 for filing online, or by mail
  • Registered Agent Change Fee: $5
  • Corporate Amendment Fee: $50

Important Offices

  • State Tax Office: North Carolina Department of Revenue
  • State Insurance Office: North Carolina Department of Insurance
  • Secretary of State Address: The Secretary of State, Business Registration Division, P.O. Box 29622, Raleigh, NC 27626
  • 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: $26
  • Online Filing for DBA: There is no online filing available
  • Offline Filing for DBA: For filing offline, you must send the accomplished DBA filing form to the Register of Deeds Office in the county where your business is located. Addresses vary by county.

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

FAQs

How do I file a boi report in North Carolina?
To file a boi report in North Carolina, you can visit the North Carolina Board of Investigation website or contact the relevant authorities.
Is it mandatory to file a boi report in North Carolina?
Yes, filing a boi report in North Carolina is mandatory according to state laws.
What information do I need to include in a boi report in North Carolina?
When filing a boi report in North Carolina, you will need to provide detailed information about the incident, individuals involved, and any relevant evidence.
Can I file a boi report anonymously in North Carolina?
Yes, you can often file a boi report anonymously in North Carolina, but it is best to check with the specific reporting agency for their policy.
How long do I have to file a boi report in North Carolina after an incident?
The time frame for filing a boi report in North Carolina may vary depending on the nature of the incident, so it is best to file as soon as possible.
What happens after I file a boi report in North Carolina?
After filing a boi report in North Carolina, authorities will investigate the matter and take appropriate actions based on their findings.
Can I follow up on a boi report filed in North Carolina?
Yes, you can often follow up on a boi report filed in North Carolina by contacting the relevant authorities or checking the status online.
Are boi reports confidential in North Carolina?
Boi reports are typically kept confidential in North Carolina to protect the identities of those involved and the integrity of the investigation.
Can I file a boi report online in North Carolina?
In many cases, you can file a boi report online in North Carolina for convenience and efficiency.
How do I file a BOI report in North Carolina?
To file a BOI report in North Carolina, you can do so online through the North Carolina Board of Investigations website.
Are there specific requirements for filing a BOI report in North Carolina?
Yes, in North Carolina, you must provide detailed information about the incident or individual you are reporting in your BOI report.
Can I file a BOI report anonymously in North Carolina?
Yes, in North Carolina, you have the option to file a BOI report anonymously if you prefer.
Is there a deadline for filing a BOI report in North Carolina?
It is recommended to file a BOI report in North Carolina as soon as possible after the incident, but there is no specific deadline.
What information do I need to include in a BOI report in North Carolina?
When filing a BOI report in North Carolina, you should include details such as date, time, location, and a description of the incident or individual you are reporting.
How long does it take to process a BOI report in North Carolina?
The processing time for a BOI report in North Carolina can vary depending on the complexity of the case and the availability of resources.
Can I follow up on a BOI report in North Carolina?
Yes, you can follow up on a BOI report in North Carolina by contacting the North Carolina Board of Investigations.
Will I receive updates on the status of my BOI report in North Carolina?
Yes, you should expect to receive updates on the status of your BOI report in North Carolina as it progresses through the investigation process.
Are there any fees associated with filing a BOI report in North Carolina?
No, there are no fees associated with filing a BOI report in North Carolina.
What actions can be taken based on the findings of a BOI report in North Carolina?
Depending on the findings of a BOI report in North Carolina, appropriate action may be taken, such as disciplinary measures, legal action, or policy changes.
Can I submit supporting documents with my BOI report in North Carolina?
Yes, you can submit supporting documents with your BOI report in North Carolina to provide additional evidence or context for the incident you are reporting.
Will my identity be kept confidential when filing a BOI report in North Carolina?
In North Carolina, efforts are made to keep the identity of the person filing a BOI report confidential, especially if they choose to remain anonymous.
Can I file a BOI report on behalf of someone else in North Carolina?
Yes, you can file a BOI report on behalf of someone else in North Carolina if you have their consent or legal authority to do so.
What happens if false information is submitted in a BOI report in North Carolina?
Submitting false information in a BOI report in North Carolina could have serious consequences, including legal repercussions or damages to your credibility.
Can I file a BOI report against a government agency in North Carolina?
Yes, you can file a BOI report against a government agency in North Carolina if you believe there has been misconduct or wrongdoing.
What protections are in place for individuals who file a BOI report in North Carolina?
In North Carolina, there are protections against retaliation for individuals who file a BOI report, including safeguards against termination or harassment.
Will I be interviewed as part of the investigation into my BOI report in North Carolina?
You may be interviewed as part of the investigation into your BOI report in North Carolina to provide further information or clarify details.
Can I appeal the findings of a BOI report in North Carolina?
In North Carolina, you may have the option to appeal the findings of a BOI report if you believe there has been an error or oversight in the investigation process.
Is there a statute of limitations for filing a BOI report in North Carolina?
While there is no specific statute of limitations for filing a BOI report in North Carolina, it is recommended to file a report as soon as possible after the incident.
Can I request confidentiality in a BOI report in North Carolina?
Yes, you can request confidentiality in a BOI report in North Carolina, especially if revealing your identity could put you at risk.
Are there legal protections in place for whistleblowers in North Carolina?
Yes, there are legal protections in place for whistleblowers in North Carolina to prevent retaliation and ensure their safety when reporting misconduct.
Can I file a BOI report online in North Carolina?
Yes, you can file a BOI report online through the North Carolina Board of Investigations website for added convenience.
What is the North Carolina Board of Investigations responsible for?
The North Carolina Board of Investigations is responsible for investigating complaints of misconduct or wrongdoing within specific fields such as law enforcement or healthcare.
Can I file a BOI report in North Carolina on behalf of a minor or vulnerable adult?
Yes, in North Carolina, you can file a BOI report on behalf of a minor or vulnerable adult if you suspect they have been subjected to abuse or negligence.
What are the consequences of failing to report suspected abuse in North Carolina?
Failing to report suspected abuse, especially involving minors or vulnerable adults, in North Carolina could result in legal consequences and further harm to the victim.
Are there resources available to assist individuals with filing a BOI report in North Carolina?
Yes, there are resources available to assist individuals in navigating the process of filing a BOI report in North Carolina, including advocacy organizations and legal assistance.
Can I provide feedback on the BOI reporting process in North Carolina?
Yes, you can provide feedback on the BOI reporting process in North Carolina to help improve the system and ensure a more efficient and transparent process.
What should I do if I suspect misconduct but am unsure about filing a BOI report in North Carolina?
If you suspect misconduct but are unsure about filing a BOI report in North Carolina, you can seek guidance from legal counsel or advocacy organizations to understand your options.

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

In North Carolina, 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.

Leave a Comment