How to File BOI Report in North Dakota

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:

Has direct or indirect ownership of 25% or more of the entity’s equity interests
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:

Corporations
Limited Liability Companies (LLCs)
Professional Limited Liability Companies (PLLCs)
Other similar entities are formed by filing a document with North Dakota Secretary of State or its equivalent.

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;

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.

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.

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:

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.

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

Can I file a boi report in North Dakota?

Yes, you can file a boi report in North Dakota.

How do I file a boi report in North Dakota?

You can file a boi report in North Dakota by contacting the appropriate authorities.

Where do I go to file a boi report in North Dakota?

You can go to your local law enforcement agency or the North Dakota Bureau of Criminal Investigation to file a boi report.

What information do I need to include in a boi report in North Dakota?

In your boi report in North Dakota, you will need to include details about the incident, any suspects involved, and any witnesses.

Is there a deadline to file a boi report in North Dakota?

While it is best to file a boi report in North Dakota as soon as possible after the incident, there may not be a strict deadline depending on the nature of the incident.

Can I file a boi report online in North Dakota?

Some law enforcement agencies in North Dakota may have the option to file a boi report online, but it’s best to check with your local authorities for specific information.

Will filing a boi report in North Dakota guarantee an arrest?

Filing a boi report in North Dakota does not guarantee that an arrest will be made, but it does help law enforcement investigate the incident.

What can I expect after filing a boi report in North Dakota?

After filing a boi report in North Dakota, you can expect law enforcement to contact you for any additional information and to update you on the progress of the investigation.

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 can vary depending on the complexity of the case and the workload of law enforcement.

Can I file a boi report anonymously in North Dakota?

Some law enforcement agencies in North Dakota may allow you to file a boi report anonymously, but it’s best to check with them for specific guidelines.

Are there any fees associated with filing a boi report in North Dakota?

Filing a boi report in North Dakota is usually free of charge, but there may be fees for obtaining copies of the report or other related services.

Can I get a copy of my boi report in North Dakota?

Yes, you can usually request a copy of your boi report in North Dakota from the law enforcement agency that you filed it with.

How long is a boi report kept on file in North Dakota?

Boi reports in North Dakota are typically kept on file for a certain period of time, depending on the policies of the law enforcement agency.

Can I amend or update my boi report in North Dakota?

You may be able to amend or update your boi report in North Dakota by contacting the law enforcement agency that you filed it with and providing additional information.

Will filing a boi report in North Dakota affect my privacy?

Filing a boi report in North Dakota is confidential, but be aware that the information you provide may be shared with law enforcement and other relevant parties for investigation purposes.

Can I file a boi report in North Dakota for non-criminal incidents?

In North Dakota, boi reports are typically filed for criminal incidents, but you should check with your local law enforcement agency for guidance on reporting non-criminal incidents.

Can I file a boi report in North Dakota on behalf of someone else?

You may be able to file a boi report in North Dakota on behalf of someone else, but in some cases, the person directly involved in the incident may need to file the report themselves.

What should I do if I need to file a boi report in North Dakota but speak a language other than English?

If you require language assistance to file a boi report in North Dakota, you should notify the law enforcement agency so that they can provide an interpreter or other necessary accommodations.

How can I check the status of a boi report in North Dakota?

To check the status of a boi report in North Dakota, you can contact the law enforcement agency that you filed it with and inquire about the progress of the investigation.

Can I file a boi report in North Dakota if the incident occurred in another state?

If the incident occurred in another state, you should generally file the boi report with the law enforcement agency in that state. However, if the incident is related to North Dakota in any way, you should notify local authorities.

Is it important to file a boi report in North Dakota for minor incidents?

Even for minor incidents, it is recommended to file a boi report in North Dakota as it helps law enforcement track crime trends and allocate resources effectively.

What should I do if I am not sure whether to file a boi report in North Dakota?

If you are unsure about whether to file a boi report in North Dakota, you can always contact a law enforcement officer or legal professional for guidance on the matter.

Can I file a boi report in North Dakota for incidents that occurred in the past?

It’s best to file a boi report in North Dakota as soon as possible after the incident, but you may still be able to report past incidents depending on the circumstances.

Is there a specific form to use when filing a boi report in North Dakota?

Some law enforcement agencies in North Dakota may offer specific forms for filing a boi report, but you can typically provide the required information in a written or verbal statement.

What if I need assistance with filing a boi report in North Dakota?

If you need assistance with filing a boi report in North Dakota, you can reach out to your local law enforcement agency, victim support services, or legal aid for guidance and assistance.

Can I file a boi report in North Dakota for online or cybercrimes?

Yes, you can file a boi report in North Dakota for online or cybercrimes by notifying the proper authorities and providing as much detail as possible about the incident.

Will filing a boi report in North Dakota lead to a trial or court case?

Filing a boi report in North Dakota may lead to a criminal investigation and potentially a trial or court case if there is enough evidence to proceed with legal action.

Are there any resources available to help me navigate the process of filing a boi report in North Dakota?

Yes, there are resources such as victim advocates, legal aid services, and law enforcement agencies in North Dakota that can provide assistance and guidance with filing a boi report.

How do I file a BOI report in North Dakota?

You can file a BOI report in North Dakota by contacting the appropriate state agency or online through their official website.

What information do I need to include in a BOI report in North Dakota?

In North Dakota, you will need to include detailed information about the incident or accident, the individuals involved, and any witnesses.

Is there a deadline for filing a BOI report in North Dakota?

Yes, in North Dakota, there is usually a deadline for filing a BOI report. It is important to contact the state agency as soon as possible after the incident.

Can I file a BOI report anonymously in North Dakota?

No, in North Dakota, you cannot file a BOI report anonymously. You will need to provide your name and contact information when filing a report.

What happens after I file a BOI report in North Dakota?

After you file a BOI report in North Dakota, the appropriate state agency will investigate the incident and determine if any action should be taken.

Can I follow up on a BOI report in North Dakota?

Yes, you can follow up on a BOI report in North Dakota by contacting the state agency handling the investigation.

Is there a fee for filing a BOI report in North Dakota?

In North Dakota, there is usually no fee for filing a BOI report. It is a free service provided by the state.

Can I file a BOI report on behalf of someone else in North Dakota?

Yes, you can file a BOI report on behalf of someone else in North Dakota if you have their permission or if you are a legal representative.

What should I do if I witness an incident that should be reported in North Dakota?

If you witness an incident that should be reported in North Dakota, you should contact the appropriate state agency or file a report online.

Will my information be kept confidential when I file a BOI report in North Dakota?

In North Dakota, your information will be kept confidential to the extent allowed by law when you file a BOI report.

Can I file a BOI report in North Dakota for a workplace accident?

Yes, you can file a BOI report in North Dakota for a workplace accident. The state agency will investigate the incident to determine if any violations occurred.

How long does it take for the state agency to investigate a BOI report in North Dakota?

The time it takes for the state agency to investigate a BOI report in North Dakota can vary depending on the complexity of the case. It is best to follow up with the agency for updates.

What if I need assistance filing a BOI report in North Dakota?

If you need assistance filing a BOI report in North Dakota, you can contact the state agency for guidance and support.

Are there specific forms I need to use to file a BOI report in North Dakota?

Yes, in North Dakota, there may be specific forms you need to use to file a BOI report. These forms can usually be found on the state agency’s website.

Can I file a BOI report in North Dakota for any type of incident?

You can file a BOI report in North Dakota for most types of incidents, including accidents, violations, and misconduct.

What should I do if I am unsure whether to file a BOI report in North Dakota?

If you are unsure whether to file a BOI report in North Dakota, you can contact the state agency for guidance and advice.

Can I request a copy of the BOI report I filed in North Dakota?

Yes, you can typically request a copy of the BOI report you filed in North Dakota. Contact the state agency for more information on how to do so.

Are there any penalties for filing a false BOI report in North Dakota?

Yes, filing a false BOI report in North Dakota can result in serious consequences, including legal action. It is important to provide accurate information when filing a report.

What is the purpose of filing a BOI report in North Dakota?

The purpose of filing a BOI report in North Dakota is to document incidents, accidents, or violations for further investigation and potential regulatory action.

Can I file a BOI report in North Dakota anonymously?

No, in North Dakota, you cannot file a BOI report anonymously. You will need to provide your contact information when filing a report.

How can I check the status of a BOI report in North Dakota?

You can check the status of a BOI report in North Dakota by contacting the state agency handling the investigation and following up with them.

What types of incidents should be reported in North Dakota?

In North Dakota, incidents such as accidents, violations, and misconduct should be reported through a BOI report. Contact the state agency for more information on what should be reported.

Can I file a BOI report in North Dakota online?

Yes, you can typically file a BOI report in North Dakota online through the state agency’s official website.

How long do I have to file a BOI report in North Dakota after an incident occurs?

It is important to file a BOI report in North Dakota as soon as possible after an incident occurs. Contact the state agency for specific deadlines.

Can I file a BOI report in North Dakota for a non-emergency situation?

Yes, you can file a BOI report in North Dakota for non-emergency situations, such as workplace violations or misconduct.

What should I do if I experience retaliation after filing a BOI report in North Dakota?

If you experience retaliation after filing a BOI report in North Dakota, you should contact the state agency handling the investigation immediately for assistance.

Is there a statute of limitations for filing a BOI report in North Dakota?

There may be a statute of limitations for filing a BOI report in North Dakota. It is best to contact the state agency for specific information on time limits.

Can I file a BOI report in North Dakota on behalf of a minor?

Yes, you can file a BOI report on behalf of a minor in North Dakota if you are their legal guardian or have permission from their legal guardian.

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.

What is Beneficial Ownership in North Dakota?

Beneficial Ownership Information Reporting