Lisa and the Law

All New Businesses Must File a BOIR – No Exceptions

All new businesses that are reporting companies will have to file an initial Beneficial Ownership Information Report (BOIR) within 30 CALENDAR days of their formation. No business will meet the requirements of any of the 23 exemptions provided by the CTA at the time the business is created. Once the reporting company obtains its exemption status, it can update its BOIR and indicate that it is newly exempt.

For example, a non-profit organization is not exempt under 501(c) until such time as the IRS issues a letter granting tax-exempt status. Until the time the wannabe nonprofit gets its official letter, the corporation is not a “tax-exempt entity” pursuant to the CTA and must comply with its reporting requirements until it officially becomes tax-exempt.

Related Services: CTA Compliance