FinCEN & BOI: Does My Inactive Company Have to File a BOI Report?

— Written By
en Español / em Português
Español

El inglés es el idioma de control de esta página. En la medida en que haya algún conflicto entre la traducción al inglés y la traducción, el inglés prevalece.

Al hacer clic en el enlace de traducción se activa un servicio de traducción gratuito para convertir la página al español. Al igual que con cualquier traducción por Internet, la conversión no es sensible al contexto y puede que no traduzca el texto en su significado original. NC State Extension no garantiza la exactitud del texto traducido. Por favor, tenga en cuenta que algunas aplicaciones y/o servicios pueden no funcionar como se espera cuando se traducen.


Português

Inglês é o idioma de controle desta página. Na medida que haja algum conflito entre o texto original em Inglês e a tradução, o Inglês prevalece.

Ao clicar no link de tradução, um serviço gratuito de tradução será ativado para converter a página para o Português. Como em qualquer tradução pela internet, a conversão não é sensivel ao contexto e pode não ocorrer a tradução para o significado orginal. O serviço de Extensão da Carolina do Norte (NC State Extension) não garante a exatidão do texto traduzido. Por favor, observe que algumas funções ou serviços podem não funcionar como esperado após a tradução.


English

English is the controlling language of this page. To the extent there is any conflict between the English text and the translation, English controls.

Clicking on the translation link activates a free translation service to convert the page to Spanish. As with any Internet translation, the conversion is not context-sensitive and may not translate the text to its original meaning. NC State Extension does not guarantee the accuracy of the translated text. Please note that some applications and/or services may not function as expected when translated.

Collapse ▲

NEWS UPDATE: On December 23rd, the Fifth Circuit Court of Appeals granted the Financial Crimes Enforcement Network’s (FinCEN) appeal to lift the nationwide injunction against beneficial ownership information (BOI) reporting requirement. The requirement, which was made mandatory for multiple types of business entities (including LLCs) under the Corporate Transparency Act (CTA), has a deadline for most submissions of January 13, 2025.

On several other prior occasions, authors of this extension portal have written about FinCEN’s latest requirements for BOI reports. Readers of this article are highly encouraged to check out broader explanation of these topics in those articles at this link and this link. Readers who are curious about the definition of a beneficial owner are encouraged to read an article specifically about that topic at this link.

On several occasions, the question has arisen that an individual has to meet reporting requirements on an inactive business entity that, if active, would be required to file beneficial ownership information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA).

The answer depends on several criteria set forth on page 14 of the Small Entity Compliance Guide, created by FinCEN to aid in questions like this. According to FinCEN, if the inactive entity meets all of the following criteria, the entity is exempt from BOI reporting requirements:

  • The entity was in existence on or before January 1, 2020 (e.g., paying registration fees to the state secretary of state).
    • In other words, if the entity was in existence after January 1, 2020, the entity will need to file a BOI report to remain in compliance.
  • The entity is not engaged in active business.
  • The entity is not owned by a ‘foreign person,’ whether directly or indirectly, in whole or in part. Foreign person is defined as someone who is not a ‘United States person,’ which is defined in Section 7701(a)(30) of IRS Code as a U.S. citizen, U.S. resident, U.S. corporation, U.S. partnership, U.S. trust, or U.S. estate.
  • The entity has not experienced any change in ownership over the preceding 12-month period.
  • The entity has not sent or received funds in an amount greater than $1,000, either directly or through any financial account in which the entity or any affiliate of the entity had an interest, in the preceding 12-month period.
  • The entity does not otherwise hold any kind or type of assets, whether in the U.S. or abroad, including any ownership interest in any corporation, limited liability company, or other similar entity.

If the inactive entity can answer each of these criteria in the affirmative, then the entity is exempt from FinCEN’s BOI reporting requirements.