One report is required for each business entity that has formed with the Secretary of State. The report provides identifying information about the individuals who own or control a business with the federal government, satisfying legal requirements.

Acclivity will notify you when it’s time to file your report based on your business and formation date. We’ll request the necessary information to file, and we’ll create an accurate report that includes the identifying information about the individuals who own or control your business (beneficial owners), satisfying the federal reporting requirement.

Then, we’ll file the report for you before your deadline with the Financial Crimes Enforcement Network (FinCEN).

You’ll receive confirmation that your report was submitted, so you can rest easy knowing you’ve met the compliance requirement.

Your deadline varies depending on your date of formation, which we can help you determine. We’ll also keep you on track with notifications leading up to your filing deadline.

Generally, existing companies, or business entities formed before January 1, 2024, have until January 1, 2025, to file. Newly created business entities formed on or after January 1, 2024, have 90 calendar days after receiving actual or public notice that their formation is official. If any information on the report changes, the entity has 30 days to submit a new report.

Meeting this requirement helps you avoid severe criminal and civil penalties for non-compliance, including imprisonment for up to two years, fines of up to $10,000, and/or fines of up to $500 per day.

A beneficial owner is an individual who directly or indirectly: (1) owns or controls at least 25% of your company’s ownership interests, or (2) exercises substantial control over your business. If you’re uncertain, you can consult with an attorney from our legal network.

Examples of beneficial owners with substantial control include:

• An important decision-maker for the reporting company

Additionally, if you officially formed your business on or after January 1, 2024, you must submit information about the individuals who formed the business (known as “company applicants”), even if they don’t qualify as beneficial owners.

Corporations and limited liability companies (LLCs) that qualify as reporting companies are required to file a BOIR. This involves reporting identifying information about the individuals who own or control the business to the U.S. government. Non-compliance can result in serious civil and criminal penalties.

This new requirement applies to most business entities, known as reporting companies, unless an exception applies.

Under the Corporate Transparency Act, this rule mandates the identification of individuals who benefit from a legal entity.

The goal of this legislation is to provide transparency around business ownership structures. It helps the federal government combat financial crimes and fraud, such as money laundering, corruption, human trafficking, drug trafficking, tax fraud, and fraud against employees, customers, and other businesses.

The Corporate Transparency Act changes the reporting requirements for beneficial ownership information of business owners operating in the United States. It requires businesses to identify and document any person who holds a 25% or greater ownership interest or exercises substantial control over the company.

Under the new rule, most reporting companies must file information on each beneficial owner with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN has developed a database to hold information about each beneficial owner documented by a reporting company.

A beneficial owner is required to provide their legal name, date of birth, address, and an image of an acceptable identification document, such as a passport or driver’s license, along with the issuing jurisdiction and the document’s ID number.

FinCEN lists 23 types of exempt business entities that do not qualify as reporting companies under the reporting requirement.

A reporting company must be an active business, and inactive entities are not required to report. FinCEN defines an inactive entity as meeting all of the following criteria:


The Act exempts certain people from the beneficial owner definition, including:


Members, or owners, of a limited liability company (LLC) are likely designated beneficial owners under the beneficial owner definition of the rule. This qualifies these LLCs as reporting companies that need to file the new report with the federal agency and provide basic contact information about the company and its owners.

This requirement applies to single-member and multi-member LLCs, all of which are considered reporting companies, and therefore also would need to identify beneficial ownership information in the BOIR.