Since January 1, 2024, any entity registered to conduct business in the United States (LLC, Corp, or any type of entity) is required to complete and submit the Beneficial Ownership Information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), the U.S. Department of the Treasury authority responsible for combating fraud and money laundering. 

The primary objective of this report is to identify the true beneficiaries of U.S. companies, whether directly (owning more than 25% of shares) or indirectly (not shareholders but involved in the management and decision-making of the company). It is also important to note that this obligation affects all true beneficiaries of entities, whether they are U.S. or foreign residents. 

Filing Deadlines 

The BOI report is submitted on a single occasion, unless there is a change in the shareholder structure. In such cases, the report must be resubmitted with updated information on the new beneficiaries. The following deadlines must be observed: 

  • Until December 31, 2024: All companies created before January 1, 2024. 
  • 90-day period: For all companies registered after January 1, 2024, starting from the notification of their registration. 
  • 30-day period: For all companies created and registered from January 1, 2025, onward. 

Implications and Penalties 

As previously stated, the BOI report is a mandatory requirement for all entities conducting commercial activities in the United States. Failure to submit this report within the stipulated timeframe will result in financial penalties amounting to $500 for each day of non-compliance. 

If you have a business in the United States or plan to expand there, contact us to ensure all your tax obligations in the USA are met and avoid potential future sanctions and/or fines that could impact your business. 

Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

Local Knowledge – International Coverage

Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.

All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.