The benefits of outsourcing Beneficial Ownership Information filing

Reduce risk and safeguard PII 

A third-party service provider can enhance your ability to accurately prepare, submit, and track a BOI filing on your behalf, so you stay in compliance with the CTA. 

Outsourcing BOI filing also helps safeguard sensitive personal identifiable information (PII). BOI reporting requires you to collect and submit PII about your company’s beneficial owner(s). It may also require you to file information about the individual(s) with who first formed your entities or registered them to do business in the U.S., known as the company applicant. 

PII submitted to FinCEN includes name, residential address, date of birth, and a photocopy of an approved identification document (passport or driver's license). 

Given that sensitive PII warrants enhanced protection and may result in additional reporting or compliance obligations for the entity gathering and storing it, engaging a third-party service provider can aid in risk mitigation.

Ensure that the service provider allows you to submit beneficial owner and PII information confidentially, without others accessing it. For instance, instead of sending BOI data through email within your company or to the service provider, which poses security risks and expose the data to multiple individuals before reaching FinCEN, choose a provider that allows you to securely upload BOI and company applicant information directly to a third-party platform. 

By doing so, you can restrict access to BOI data to those with appropriate permissions.

Save time handling multiple entities

FinCEN requires reports to be filed per entity in order for them to transparently track ownership. This means businesses that need to report on a portfolio of entities or trusted advisors, such as law or accounting firms, filing for their clients, face the challenge of filing large volume of reports accurately to FinCEN. This can be a time consuming and error prone task that can be augmented through automation.

The right service provider can make managing multiple entities easier by offering secure and automated multi-report workflows. They should also allow multi-report creation, edit, and filing, eliminating the need to file individual BOI reports with FinCEN for each entity.

Manage ongoing compliance obligations

After you’ve filed your initial BOI report, it’s important to keep track of all the information you've reported and update it whenever it changes. 

While there are no annual reporting requirements after your initial BOI filing, as a reporting company you must report any changes to previously reported company or beneficial ownership information by filing an updated report no later than 30 days after the change. For example, a change in your principal place of business or a new residential address for a beneficial owner will trigger the need to file an updated report. 

Through a service provider, you can file an amended report using the information originally uploaded. The provider should also be able to track potential triggers, such as an expiring driver’s license – so you don’t have to.

According to FinCEN, 6.6 million businesses will update their reports in 2024, and 14.5 million updates each year thereafter, emphasizing the importance of ongoing compliance.

Use CT Corporation's Beneficial Ownership Platform for fast and accurate BOI filings

CT Corporation’s streamlined, secure, and automated workflow will reduce BOI filing times and errors and ensure you don’t face the threat of harsh civil and criminal penalties for non-compliance. Explore the benefits of our purpose-built Beneficial Ownership Platform, including:

• Ease of use: Reduce BOI filing confusion and ensure compliance with our five-step filing process.
• Efficient: Our fast and automated filing process can save hours on each filing.
• Secure: Safeguard your sensitive PII using our robust security protocols.

Learn how CT Corporation’s Beneficial Ownership platform will help you confidently file your beneficial ownership reports.