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


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How to file a BOI Report in North Dakota: 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 Dakota, 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 Dakota, also known as The Peace Garden State, has a population of 811,044. 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 Dakota

What is Beneficial Ownership in North Dakota?

Beneficial ownership in North Dakota 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 Dakota, 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 Dakota 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 Dakota.

BOI Reporting Companies (Entities) in North Dakota

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

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

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

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Online BOI Report Filing in North Dakota

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

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

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

BOI Reporting Required Information in North Dakota

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

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 Dakota 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 Dakota or forming a corporation in North Dakota 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 Dakota.

State Specific Data: North Dakota

Capital and Incorporation

  • The capital of North Dakota is Bismarck.
  • The population of North Dakota: 811,044
  • The Annual GDP of North Dakota: 75,169
  • Incorporation in North Dakota can be done through various methods including online and offline. For more details, visit North Dakota Secretary of State.
  • Incorporation Method in North Dakota (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Incorporation Method in North Dakota (Offline): Send the form by mail to Secretary of State, State of North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500

Filing Fees

  • LLC Initial Filing Fee: $135
  • LLC Amendment Fees: $50
  • Annual Fee: $50
  • DBA Filing Fee: $25
  • Incorporation Fee: $100 for online and by mail filing
  • Registered Agent Change Fee: $10
  • Corporate Amendment Fee: $50.00

Important Offices

  • State Tax Office: North Dakota Office of State Tax Commissioner
  • State Insurance Office: North Dakota Insurance Department
  • Secretary of State Address: North Dakota, 600 E Boulevard Avenue Dept 108, Bismarck ND 58505-0500
  • Department of Treasury: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​

Key Contacts

  • Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​
  • Filing Method for DBA: two methods, by mail and in person.
  • Filing Fee for DBA: $25
  • 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 North Dakota Secretary of State, 600 E. Boulevard Ave., Dept. 108, Bismarck, ND 58505-0500 or drop it off in person at the same address.

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

FAQs

How do I file a BOI report in North Dakota?
To file a BOI report in North Dakota, you can visit the North Dakota Office of State Tax Commissioner website and follow their instructions.
Can I file a BOI report online in North Dakota?
Yes, you can file a BOI report online through the North Dakota Office of State Tax Commissioner’s website.
What information do I need to include in a BOI report in North Dakota?
In North Dakota, you will need to provide information about your business activities, sales, purchases, and other relevant financial data in a BOI report.
Are there specific deadlines for filing a BOI report in North Dakota?
Yes, in North Dakota, the deadline for filing a BOI report is typically March 15th of each year.
Is there a penalty for filing a BOI report late in North Dakota?
Yes, there is a penalty for filing a BOI report late in North Dakota, so it is important to submit your report by the deadline.
Can I request an extension to file my BOI report in North Dakota?
Yes, you can request an extension to file your BOI report in North Dakota by contacting the Office of State Tax Commissioner.
What are the consequences of failing to file a BOI report in North Dakota?
Failing to file a BOI report in North Dakota can result in penalties and interest fees being assessed on your business.
How often do I need to file a BOI report in North Dakota?
In North Dakota, you typically need to file a BOI report annually by the deadline provided by the Office of State Tax Commissioner.
Can I file a BOI report for multiple businesses in North Dakota?
Yes, you can file a BOI report for multiple businesses in North Dakota, but you will need to provide separate information for each business.
Can I file a BOI report for a business that is no longer operating in North Dakota?
If a business is no longer operating in North Dakota, you may still need to file a final BOI report to officially close out the business’s tax obligations.
What information is required to file a BOI report in North Dakota?
When filing a BOI report in North Dakota, you will need to provide details such as the nature of the incident, names of the parties involved, and any supporting documentation.
Is there a deadline for filing a BOI report in North Dakota?
Yes, in North Dakota, you must file a BOI report within a certain timeframe after the incident occurs. It is important to check with the North Dakota Insurance Department for specific deadlines.
Can I file a BOI report in North Dakota anonymously?
In North Dakota, you may not be able to file a BOI report anonymously. However, you can inquire with the North Dakota Insurance Department for options on how to keep your information confidential.
What happens after I file a BOI report in North Dakota?
After you file a BOI report in North Dakota, the North Dakota Insurance Department will review the information provided and investigate the matter further if necessary.
How long does it take for a BOI report to be resolved in North Dakota?
The time it takes for a BOI report to be resolved in North Dakota can vary depending on the complexity of the case. It is best to consult with the North Dakota Insurance Department for an estimated timeframe.
Can I seek legal representation when filing a BOI report in North Dakota?
Yes, in North Dakota, you have the right to seek legal representation when filing a BOI report. An attorney can help guide you through the process and ensure your rights are protected.
Are there any fees associated with filing a BOI report in North Dakota?
There may be fees associated with filing a BOI report in North Dakota, such as processing fees or administrative costs. It is advisable to check with the North Dakota Insurance Department for information on any applicable fees.
What if I need assistance with filing a BOI report in North Dakota?
If you require assistance with filing a BOI report in North Dakota, you can reach out to the North Dakota Insurance Department for guidance and support. They may be able to provide you with resources and help you understand the process better.
How can I stay updated on the status of my BOI report in North Dakota?
To stay updated on the status of your BOI report in North Dakota, you can contact the North Dakota Insurance Department and inquire about any updates or developments in your case. They may be able to provide you with information on the ongoing investigation.
How do I file a Boi report in North Dakota?
To file a Boi report in North Dakota, you can visit the North Dakota Department of Financial Institutions website and follow the instructions provided.
Is it mandatory to file a Boi report in North Dakota?
Yes, it is mandatory to file a Boi report in North Dakota if you meet the criteria set forth by the state.
What information do I need to include in my Boi report in North Dakota?
You will need to include information such as your personal details, financial information, and any relevant documentation requested by the North Dakota Department of Financial Institutions.
Are there any deadlines for filing a Boi report in North Dakota?
Yes, there may be specific deadlines for filing a Boi report in North Dakota, so it is important to check with the North Dakota Department of Financial Institutions for the most up-to-date information.
Can I file a Boi report online in North Dakota?
Yes, you may be able to file a Boi report online in North Dakota, depending on the system put in place by the state.
How long does it take for a Boi report to be processed in North Dakota?
The processing time for a Boi report in North Dakota may vary, so it is recommended to check with the North Dakota Department of Financial Institutions for an estimated timeline.
What are the consequences of not filing a Boi report in North Dakota?
Failure to file a Boi report in North Dakota may result in penalties or legal action being taken against you, so it is important to adhere to the state requirements.
Can I get assistance with filing a Boi report in North Dakota?
Yes, you may be able to seek assistance with filing a Boi report in North Dakota through resources provided by the North Dakota Department of Financial Institutions or professional consultants.
What are the steps to follow when filing a Boi report in North Dakota?
The steps to follow when filing a Boi report in North Dakota may vary, but generally, you will need to gather the necessary information, complete the required forms, and submit them to the appropriate authorities.
Is there a fee associated with filing a Boi report in North Dakota?
There may be a fee associated with filing a Boi report in North Dakota, so it is important to check with the North Dakota Department of Financial Institutions for the current fee schedule.
How can I check the status of my Boi report in North Dakota?
You can check the status of your Boi report in North Dakota by contacting the North Dakota Department of Financial Institutions directly or checking online if there is a portal available.
Are there any guidelines or resources available for filing a Boi report in North Dakota?
Yes, the North Dakota Department of Financial Institutions may provide guidelines or resources to help individuals navigate the Boi report filing process in the state.
Can I amend a Boi report after it has been filed in North Dakota?
If you need to make changes to a Boi report after it has been filed in North Dakota, you should contact the North Dakota Department of Financial Institutions for instructions on how to proceed.
Is my Boi report in North Dakota confidential?
Your Boi report in North Dakota may be confidential, but it is recommended to check with the North Dakota Department of Financial Institutions for specifics on privacy and data protection.
Can I download Boi report forms online for North Dakota?
Yes, you may be able to download Boi report forms online for North Dakota from the North Dakota Department of Financial Institutions website.
Are there any specific requirements for filing a Boi report in North Dakota?
Yes, there are specific requirements for filing a Boi report in North Dakota, such as providing accurate and complete information as requested by the state authorities.
How do I know if I am required to file a Boi report in North Dakota?
You may be required to file a Boi report in North Dakota if you engage in certain financial activities that fall within the state’s regulations, so it is important to check with the North Dakota Department of Financial Institutions for guidance.
Can I submit my Boi report in person in North Dakota?
You may be able to submit your Boi report in person in North Dakota if the state authorities accept filings in this manner.
What should I do if I encounter technical difficulties while filing a Boi report in North Dakota?
If you encounter technical difficulties while filing a Boi report in North Dakota, you should contact the North Dakota Department of Financial Institutions for assistance.
Can I request an extension for filing my Boi report in North Dakota?
You may be able to request an extension for filing your Boi report in North Dakota under certain circumstances, so it is advisable to reach out to the North Dakota Department of Financial Institutions for more information.
Is there a specific format for submitting supporting documents with my Boi report in North Dakota?
There may be a specific format for submitting supporting documents with your Boi report in North Dakota, so it is recommended to follow the guidelines provided by the North Dakota Department of Financial Institutions.
How can I contact the North Dakota Department of Financial Institutions for Boi report inquiries?
You can contact the North Dakota Department of Financial Institutions regarding Boi report inquiries by phone, email, or visiting their office during business hours.
Can I file a Boi report on behalf of someone else in North Dakota?
If you are authorized to do so, you may be able to file a Boi report on behalf of someone else in North Dakota, but it is important to confirm this with the state authorities first.
What are the potential consequences of filing a false Boi report in North Dakota?
Filing a false Boi report in North Dakota may lead to legal repercussions, fines, or sanctions, so it is crucial to provide accurate and truthful information as required by the state.
Are there specific instructions for submitting additional documentation with my Boi report in North Dakota?
Yes, there may be specific instructions for submitting additional documentation with your Boi report in North Dakota, so it is advisable to follow the guidelines provided by the state authorities.
Can I get a copy of my filed Boi report in North Dakota?
You may be able to request a copy of your filed Boi report in North Dakota from the North Dakota Department of Financial Institutions by following the proper procedure for obtaining the record.
How can I appeal a decision regarding my Boi report in North Dakota?
If you wish to appeal a decision regarding your Boi report in North Dakota, you should follow the appeals process outlined by the North Dakota Department of Financial Institutions.
Will my personal information be protected when filing a Boi report in North Dakota?
The North Dakota Department of Financial Institutions may have measures in place to protect your personal information when filing a Boi report, but it is recommended to review their privacy policy for assurances.

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

In North Dakota, 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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