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


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How to file a BOI Report in South 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 South 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.

South Carolina, also known as The Palmetto State, has a population of 5,266,343. 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 South Carolina

What is Beneficial Ownership in South Carolina?

Beneficial ownership in South 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 South 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 South 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 South Carolina.

BOI Reporting Companies (Entities) in South Carolina

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

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

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

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Online BOI Report Filing in South Carolina

  • Step 1: For online filing, reporting companies in South 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 South 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 South Carolina and the rest of the United States. All the LLCs in South Carolina, Corporations, and other types of businesses registered under South Carolina Secretary of State will have to file the report within the given time.

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

BOI Reporting Required Information in South Carolina

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in South 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 South 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 South 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 South 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 South 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 South Carolina or forming a corporation in South 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 South Carolina.

State Specific Data: South Carolina

Capital and Incorporation

  • The capital of South Carolina is Columbia.
  • The population of South Carolina: 5,266,343
  • The Annual GDP of South Carolina: 298,961
  • Incorporation in South Carolina can be done through various methods including online and offline. For more details, visit South Carolina Secretary of State.
  • Incorporation Method in South Carolina (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Incorporation Method in South Carolina (Offline): Send the form by mail to South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201

Filing Fees

  • LLC Initial Filing Fee: $110
  • LLC Amendment Fees: $25
  • Annual Fee: $0 because it is not mandatory
  • DBA Filing Fee: $10
  • Incorporation Fee: $110 for online and by mail filing
  • Registered Agent Change Fee: $10
  • Corporate Amendment Fee: $110

Important Offices

  • State Tax Office: South Carolina Department of Revenue
  • State Insurance Office: South Carolina Department of Insurance
  • Secretary of State Address: South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201
  • 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: $10
  • Online Filing for DBA: There is no online filing available
  • Offline Filing for DBA: For filing offline in South Carolina, you must send the accomplished DBA filing form to the South Carolina Secretary of State’s Office, Attn: Trademarks, P.O. Box 11350, Columbia, SC 29211 or drop it off in person at 1205 Pendleton Street, Suite 525, Columbia, SC 29201.

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

FAQs

How do I file a boi report in South Carolina?
To file a boi report in South Carolina, you can visit the South Carolina Department of Insurance website.
What information do I need to include in a boi report in South Carolina?
When filing a boi report in South Carolina, you will need to provide details about the insurance company in question and the nature of your complaint.
Can I file a boi report anonymously in South Carolina?
Yes, you can file a boi report anonymously in South Carolina if you wish to remain confidential.
Is there a deadline for filing a boi report in South Carolina?
It is recommended to file a boi report in South Carolina as soon as you become aware of any issues with an insurance company.
What happens after I file a boi report in South Carolina?
After you file a boi report in South Carolina, the Department of Insurance will review the information provided and take appropriate action.
Can I file a boi report online in South Carolina?
Yes, you can file a boi report online through the South Carolina Department of Insurance website.
Are there any fees associated with filing a boi report in South Carolina?
No, there are no fees to file a boi report in South Carolina.
How long does it take to resolve a boi report in South Carolina?
The time it takes to resolve a boi report in South Carolina can vary depending on the complexity of the issue.
Can I appeal the outcome of a boi report in South Carolina?
If you are not satisfied with the outcome of a boi report in South Carolina, you may have the option to appeal the decision.
What should I do if I suspect insurance fraud in South Carolina?
If you suspect insurance fraud in South Carolina, you should report it to the Department of Insurance immediately.
How can I check the status of my boi report in South Carolina?
You can check the status of your boi report in South Carolina by contacting the Department of Insurance directly.
Is my information kept confidential when I file a boi report in South Carolina?
Yes, your information is kept confidential when you file a boi report in South Carolina.
Can I file a boi report on behalf of someone else in South Carolina?
Yes, you can file a boi report on behalf of someone else in South Carolina if you have their permission to do so.
What should I do if I receive a rejection letter for my boi report in South Carolina?
If you receive a rejection letter for your boi report in South Carolina, you may want to review the reasons for the rejection and provide any additional information requested.
How can I obtain a copy of my boi report in South Carolina?
You can request a copy of your boi report in South Carolina by contacting the Department of Insurance.
Can I file a boi report in South Carolina if I am not a resident of the state?
Yes, you can file a boi report in South Carolina regardless of whether or not you are a resident of the state.
What is the role of the Department of Insurance in South Carolina?
The Department of Insurance in South Carolina is responsible for regulating insurance companies and protecting consumers.
How can I report insurance scams in South Carolina?
You can report insurance scams in South Carolina to the Department of Insurance or to the National Association of Insurance Commissioners.
Can I file a boi report in South Carolina for any type of insurance?
Yes, you can file a boi report in South Carolina for any type of insurance, including auto, health, and life insurance.
What type of documentation do I need to submit with my boi report in South Carolina?
You may need to submit copies of any relevant correspondence, contracts, or policies with your boi report in South Carolina.
Is there a statute of limitations for filing a boi report in South Carolina?
It is best to file a boi report in South Carolina as soon as possible, as there may be time limits for certain types of complaints.
Can I file a boi report in South Carolina for an insurance company located in another state?
No, if the insurance company is located in another state, you should file a boi report with the insurance regulator in that state.
How can I contact the Department of Insurance in South Carolina?
You can contact the Department of Insurance in South Carolina by phone, email, or mail.
What is the difference between a boi report and a consumer complaint in South Carolina?
A boi report is specifically related to complaints against insurance companies, while a consumer complaint can be made about any type of product or service.
Can I file a boi report in South Carolina for an agent or broker?
Yes, if you have a complaint against an agent or broker in South Carolina, you can file a boi report with the Department of Insurance.
How can I file a boi report against an uninsured driver in South Carolina?
If you are involved in an accident with an uninsured driver in South Carolina, you should report the incident to the Department of Insurance.
Can I file a boi report in South Carolina if my claim was denied?
Yes, if your insurance claim was denied unjustly in South Carolina, you can file a boi report with the Department of Insurance.
What should I do if I receive a settlement offer that is lower than expected in South Carolina?
If you receive a settlement offer that is lower than expected in South Carolina, you can file a boi report and request a review of the offer.
Are there any resources available to help me file a boi report in South Carolina?
Yes, you can find guidance on how to file a boi report in South Carolina on the Department of Insurance website or by contacting their consumer services division.
What information do I need to include in my boi report in South Carolina?
When filing a boi report in South Carolina, you will need to provide details of the incident, any individuals involved, and any relevant insurance policies.
Is it mandatory to file a boi report in South Carolina?
Yes, in South Carolina, it is required by law to file a boi report with the Department of Insurance in certain situations.
What is the deadline for filing a boi report in South Carolina?
The deadline for filing a boi report in South Carolina may vary depending on the circumstances of the incident, so it is essential to file as soon as possible.
Is there a fee for filing a boi report in South Carolina?
There is typically no fee for filing a boi report in South Carolina, but it is best to confirm with the Department of Insurance.
How long does it take to process a boi report in South Carolina?
The processing time for a boi report in South Carolina can vary, but you can contact the Department of Insurance for an estimate.
Can I appeal the findings of a boi report in South Carolina?
If you disagree with the findings of a boi report in South Carolina, you may have the right to appeal the decision through the appropriate channels.
Are there any laws that protect whistleblowers who file a boi report in South Carolina?
Yes, South Carolina has laws in place to protect whistleblowers who file boi reports, ensuring their identities are kept confidential.
What penalties could I face for failing to file a boi report in South Carolina?
Failing to file a boi report in South Carolina when required by law could result in fines or other legal repercussions, so it is important to comply with reporting requirements.
What is the role of the South Carolina Department of Insurance in boi reporting?
The South Carolina Department of Insurance oversees boi reporting and investigations to ensure compliance with state regulations and protect consumers.
Can I file a boi report for multiple incidents in South Carolina?
You may need to file separate boi reports for each incident in South Carolina, depending on the circumstances of each case.
Is there a specific form I need to use to file a boi report in South Carolina?
The South Carolina Department of Insurance may have a specific form or template to use when filing a boi report in the state.
How do I know if my situation requires me to file a boi report in South Carolina?
If you are unsure whether you need to file a boi report in South Carolina, contact the Department of Insurance for guidance based on your circumstances.
Can I file a boi report for an incident that occurred outside of South Carolina?
If the incident has an impact on insurance matters within South Carolina, you may need to file a boi report with the state’s Department of Insurance.
What is the purpose of filing a boi report in South Carolina?
Filing a boi report in South Carolina is essential for investigating insurance-related fraud, disputes, or misconduct and ensuring compliance with state laws.
Can I file a boi report for a past incident in South Carolina?
Missing the deadline to file a boi report for a past incident in South Carolina may limit your options for recourse, so it is best to file as soon as possible.
Can the information I provide in my boi report be used in court in South Carolina?
The information provided in a boi report in South Carolina may be used as evidence in court if necessary for legal proceedings related to the incident.
Are there any limitations on who can file a boi report in South Carolina?
Anyone with relevant information about an insurance-related incident in South Carolina may be able to file a boi report with the Department of Insurance.
Can I file a boi report for an incident involving multiple insurance companies in South Carolina?
If the incident involves multiple insurance companies, you may need to file separate boi reports with the Department of Insurance for each company involved.
How will filing a boi report in South Carolina affect my insurance coverage?
Filing a boi report in South Carolina should not impact your insurance coverage directly, but it may result in changes or adjustments based on the outcome of the investigation.
Can I file a boi report for a dispute with my insurance company in South Carolina?
If you have a dispute with your insurance company in South Carolina that you cannot resolve directly, you may be able to file a boi report with the Department of Insurance for assistance.
Is there a time limit for filing a boi report in South Carolina after an incident occurs?
The time limit for filing a boi report in South Carolina after an incident may vary depending on the type of incident and the specific circumstances; it is recommended to file as soon as possible.
Can filing a boi report in South Carolina help me recover losses from an insurance scam?
Filing a boi report in South Carolina can be crucial for investigating insurance scams and potentially recovering losses incurred as a result of fraudulent activity.

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

In South 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.

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