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


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

Pennsylvania, also known as The Keystone State, has a population of 13,092,796. 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 Pennsylvania

What is Beneficial Ownership in Pennsylvania?

Beneficial ownership in Pennsylvania 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 Pennsylvania, 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 Pennsylvania 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 Pennsylvania.

BOI Reporting Companies (Entities) in Pennsylvania

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

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

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

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Online BOI Report Filing in Pennsylvania

  • Step 1: For online filing, reporting companies in Pennsylvania 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 Pennsylvania

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

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

BOI Reporting Required Information in Pennsylvania

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

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 Pennsylvania 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 Pennsylvania or forming a corporation in Pennsylvania 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 Pennsylvania.

State Specific Data: Pennsylvania

Capital and Incorporation

  • The capital of Pennsylvania is Harrisburg.
  • The population of Pennsylvania: 13,092,796
  • The Annual GDP of Pennsylvania: 931,717
  • Incorporation in Pennsylvania can be done through various methods including online and offline. For more details, visit Pennsylvania Secretary of State.
  • Incorporation Method in Pennsylvania (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Incorporation Method in Pennsylvania (Offline): Send the form by mail to Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, P.O. Box 8722, Harrisburg, PA 17105

Filing Fees

  • LLC Initial Filing Fee: $125 (by mail and online)
  • LLC Amendment Fees: $70
  • Annual Fee: $70
  • DBA Filing Fee: $70
  • Incorporation Fee: $125 for online and by mail filing
  • Registered Agent Change Fee: $5
  • Corporate Amendment Fee: $70

Important Offices

  • State Tax Office: Pennsylvania Department of Revenue
  • State Insurance Office: Pennsylvania Insurance Department
  • Secretary of State Address: Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, P.O. Box 8722, Harrisburg, PA 17105
  • 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: $70
  • Online Filing for DBA: There is no online filing available
  • Offline Filing for DBA: For filing offline in Pennsylvania, you must send the accomplished DBA filing form to the Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations, P.O. Box 8722, Harrisburg, PA 17105-8722 or drop it off in person at 401 North Street, Room 206, Harrisburg, PA 17120.

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

FAQs

How do I file a BOI report in Pennsylvania?
To file a BOI report in Pennsylvania, you can visit the Pennsylvania Department of Banking and Securities website.
What is the deadline for filing a BOI report in Pennsylvania?
The deadline for filing a BOI report in Pennsylvania is typically 90 days after the end of your fiscal year.
Do I need to file a BOI report in Pennsylvania if my business is not located in the state?
If your business conducts business in Pennsylvania, you may be required to file a BOI report in the state.
What information do I need to include in my BOI report in Pennsylvania?
You will need to provide information about your business’s financial activities, assets, liabilities, and revenue in your BOI report in Pennsylvania.
Can I file my BOI report in Pennsylvania online?
Yes, you can generally file your BOI report in Pennsylvania online through the Pennsylvania Department of Banking and Securities website.
What are the consequences of not filing a BOI report in Pennsylvania?
Failure to file a BOI report in Pennsylvania may result in penalties, fines, and the suspension of your business license.
Is there a fee for filing a BOI report in Pennsylvania?
There may be a filing fee associated with submitting a BOI report in Pennsylvania, so be sure to check the current fee schedule.
Can I amend my BOI report in Pennsylvania after I have filed it?
Yes, you can typically file an amended BOI report in Pennsylvania if you need to make corrections or updates.
How do I access my BOI report after filing it in Pennsylvania?
You can typically access and download your filed BOI report in Pennsylvania through the state’s online filing system.
What if I need help with filing my BOI report in Pennsylvania?
If you need assistance with filing your BOI report in Pennsylvania, you can contact the Pennsylvania Department of Banking and Securities for help.
Do I need to include supporting documents with my BOI report in Pennsylvania?
Depending on the specific requirements, you may be required to attach supporting documents to your BOI report in Pennsylvania.
Can I request an extension to file my BOI report in Pennsylvania?
You may be able to request an extension to file your BOI report in Pennsylvania, but you should contact the Pennsylvania Department of Banking and Securities for more information.
How long does it typically take to process a filed BOI report in Pennsylvania?
The processing time for a filed BOI report in Pennsylvania can vary, but you should receive confirmation of receipt once it has been submitted.
What are the penalties for late filing of a BOI report in Pennsylvania?
If you file your BOI report in Pennsylvania after the deadline, you may incur late fees, interest charges, and other penalties.
Can I file a BOI report in Pennsylvania if my business is no longer active?
If your business has ceased operations in Pennsylvania, you may still be required to file a final BOI report to officially close out your financial activities in the state.
Can I request a copy of my filed BOI report from Pennsylvania?
Yes, you should be able to request a copy of your filed BOI report from Pennsylvania for your records or for other official purposes.
Are there any exemptions for filing a BOI report in Pennsylvania?
Some small businesses or certain types of entities may be exempt from filing a BOI report in Pennsylvania, but you should check with the state for specific details.
What happens if I miss the deadline to file my BOI report in Pennsylvania?
If you miss the deadline to file your BOI report in Pennsylvania, you should file it as soon as possible to avoid additional penalties or consequences.
Can I file a consolidated BOI report for multiple businesses in Pennsylvania?
If you have multiple businesses that are part of the same entity, you may be able to file a consolidated BOI report in Pennsylvania, but you should clarify this with state authorities.
How do I know if I need to file a BOI report in Pennsylvania?
If your business is involved in financial activities or transactions in Pennsylvania, you may be required to file a BOI report with the state.
What information should I review before filing a BOI report in Pennsylvania?
Before filing a BOI report in Pennsylvania, you should review your financial records, tax documents, and other relevant information to ensure accuracy and completeness.
Can I file a BOI report for a nonprofit organization in Pennsylvania?
Nonprofit organizations in Pennsylvania may be required to file a different type of financial report, so you should check with state regulations for specific requirements.
How often do I need to file a BOI report in Pennsylvania?
The frequency of filing a BOI report in Pennsylvania may vary depending on the type of business entity and its financial activities, so you should check with state guidelines.
Do I need a professional accountant to help me file a BOI report in Pennsylvania?
While you may choose to hire a professional accountant to assist with your BOI report in Pennsylvania, it is not always required, especially for small businesses.
Can I make electronic payments while filing my BOI report in Pennsylvania?
Depending on the filing system and requirements, you may be able to make electronic payments for any associated fees or penalties while filing your BOI report in Pennsylvania.
What is the length of time the Pennsylvania Department of Banking and Securities will send the confirmation of receipt?
The Pennsylvania Department of Banking and Securities typically sends a confirmation of receipt for a filed BOI report within a few weeks, but processing times may vary.
Can I change the filing method after starting to file my BOI report in Pennsylvania?
Once you have initiated the filing process for your BOI report in Pennsylvania, you should follow through with the same method and contact state officials for any necessary changes.
Can I find templates or examples of BOI reports filed in Pennsylvania?
You may be able to find templates or examples of BOI reports filed in Pennsylvania through the state’s online resources or by contacting the Pennsylvania Department of Banking and Securities.
How can I confirm the submission of my BOI report in Pennsylvania?
You can typically receive confirmation of submission for your BOI report in Pennsylvania through the filing system or by contacting the state department directly.
Is filing a BOI report in Pennsylvania mandatory for all businesses?
Filing a BOI report in Pennsylvania is typically required for businesses that conduct financial activities or transactions within the state, so you should check with state regulations for specific mandates.

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

In Pennsylvania, 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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