Author Business: New U.S. Filing Requirement (BOI Reporting)


person holding the business section of a newspaper
Photo by Adeolu Eletu on Unsplash

In December, my husband’s company received notice of a new federal report they needed to file with the government. It didn’t even occur to me to look into this for my own LLC. (An embarrassing oversight for a former accountant!) Thanks to Jane Friedman’s Electric Speed newsletter, I got a nice heads up.

Tip: If you haven’t subscribed to Jane’s Electric Speed newsletter, I urge you to do so. It’s chocked full of information and resources on all aspects of your author business.

The new report is called the Beneficial Ownership Information (BOI) report and originated under the Corporate Transparency Act (CTA) as part of the Anti-Money Laundering Act of 2020, which requires businesses to report who their owners are to the Financial Crimes Enforcement Network (FinCEN) within the U.S. Department of Treasury.

The CTA went into effect on January 1, 2024 and existing companies have one year to file the report.

According to the FinCEN’s Small Entity Compliance Guide, you must file if your company is a corporation, a limited liability company (LLC), or was created by filing a document with a secretary of state (or similar office) under the law of a State or Indian tribe. (That last part also applies to foreign-based businesses who have registered to do business in the U.S.)

The information required is very basic. For the company, requirements include the company’s legal name, current U.S. address, tax identification number, etc. For each beneficial owner, the report requires full legal name, date of birth, current address, a unique identifying number from a government-issued document (passport, driver’s license, etc.), and an image of that document.

Where you can find more information about the BOI report:

Wrap Up

Definitely add this to your To Do list for your business. You want to make sure you’re compliant and don’t incur any fines or penalties.

Happy Business Ownership!

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