How to File BOI Report in Illinois – Ultimate Guide (2024) (original) (raw)

How to file a BOI Report in Illinois: Since the Corporate Transparency Act, the Beneficial Ownership Information (BOI) principle has become an important aspect of the regulatory framework for Limited Liability Companies, Corporations, and all types of business structures. This act aims to increase transparency and fight against illegal financial activities by requiring businesses to disclose information about beneficial owners. In Illinois, companies must comply with these BOI reporting obligations, and this guide will give a comprehensive overview of the processes involved, entities affected, and compliance actions that must be put in place.

Illinois, also known as The Prairie State, has a population of 12,807,072. That makes the state small business friendly. According to the act, small and medium-sized businesses have to file BOI reports. In this article, LLCBuddy editors shared the latest update and mandate on filing BOI reports in Illinois.

What is Beneficial Ownership in Illinois?

Beneficial ownership in Illinois entails individuals who own or control an entity ultimately even though legal ownership rests with some other person. These persons may have significant influence over it or hold substantial interest therein as owners. Identifying who qualifies as a beneficial owner is a critical first step in complying with BOI reporting requirements. To be a beneficial owner, one must meet at least one of the following:

Has direct or indirect ownership of 25% or more of the entity’s equity interests
Directly or indirectly exercises significant control over the entity

It should be noted that beneficial ownership can involve complicated ownership structures; therefore entities should conduct thorough assessments of their organizational structure and holdings.

Beneficial Ownership Information Reporting

The BOI (Beneficial Ownership Information) Report is a memo or document that every small and medium-sized business (exemption applicable) has to file with the Financial Crimes Enforcement Network (FinCEN). In Illinois, any LLC that is eligible to enlist under the reporting company must file the BOI Report within the given period.

It is not only mandatory for all businesses in Illinois but also can lead to heavy monetary penalties along with imprisonment. There are many reasons why the Corporate Transparency Act was started and BOI Report filing becomes mandatory for all businesses in Illinois.

BOI Reporting Companies (Entities) in Illinois

Not every company, located in Illinois, is required to file BOI reports with FinCEN. Only the eligible companies (Reporting Companies) are liable to file the BOI report. Following are the requirements for BOI reporting,

Entities Required to Report

There are certain entities that are considered “Reporting Companies” as per the Corporate Transparency Act and must report beneficial ownership information. Normally, these include:

Corporations
Limited Liability Companies (LLCs)
Professional Limited Liability Companies (PLLCs)
Other similar entities are formed by filing a document with Illinois Secretary of State or its equivalent.

Exempted Entities

However, it is important to note that there are certain entities in Illinois that do not have BOI reporting requirements such as;

Sole proprietorships or any business structure that does not require registration under Illinois SOS.
Large entities (more than 20 employees with $5M revenue)
Tax-exempt organizations
Inactive entities meeting specific criteria
Subsidiaries of exempt entities
Complex ownership that is not publicly known

For PLLCs, selected types of companies get to file BOI reports. Small PLLCs that do not meet the eligibility of reporting companies are exempted from filing BOIR. Besides, PLLCs that are already under stringent regulatory authority like the medical or law field, might get an exemption too.

List of Entities Exempted from BOI Reporting According to FinCEN

Securities reporting issuer
Governmental authority
Bank
Credit union
Depository institution holding company
Money services business
Broker or dealer in securities
Securities exchange or clearing agency
Other Exchange Act registered entity
Investment companies or investment advisers
Venture capital fund adviser
Insurance company
State-licensed insurance producer
Commodity Exchange Act registered entity
Accounting firm
Public utility
Financial market utility
Pooled investment vehicle
Tax-exempt entity
Entity assisting a tax-exempt entity
Large operating company
Subsidiary of certain exempt entities
Inactive entity

Entities should review their classification carefully in order to ascertain if they fall under the requirement for reporting or qualify for an exemption. It is recommended to consult an expert before you start filing your BOI Report. Also, not only the above-mentioned sectors but also the size and structure of the business matters when it comes to filing the report. Hence, it is important to consult an expert beforehand.

How to File a BOI Report in Illinois?

In Illinois, you can file your BOI report in two ways. The report can be filed online or offline. The process is pretty simple. There is an online and offline (PDF) form available. The reporting company in Illinois has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Illinois

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Online BOI Report Filing in Illinois

Step 1: For online filing, reporting companies in Illinois are required to visit the FinCEN BOIR e-filing page.
Step 2: The first page shows 4 options, Initial Report, Correct Prior Report, Update Prior Report, and Newly Exempt Entity.
Step 3: For the fresh filing, select Initial Report and click NEXT.
Step 4: On the next page, fill out the form for Reporting Company and ask for FinCEN ID.
Step 5: The ‘Company Applicant’ page comes up next. Add the details wherever is required.
Step 6: The next page shows the details of the Beneficial Owner(s). Also, mention if there is an exemption.
Step 7: Submit the online form after sharing your name and email on the final page.

BOI reporting e-filing

Offline BOI Report Filing in Illinois

Step 1: For offline filing, visit the FinCEN BOI Report filing page
Step 2: Download the PDF form from the ‘Prepare BOIR’ option
Step 3: The PDF form requires Adobe Reader 8 or higher, make sure you have this version installed on your device.
Step 4: Save the form on your device.
Step 5: Fill it up with the correct information. Make sure to select the ‘Initial Report’ if you’re filing it afresh. For correction or updating the previous form, select the other options.
Step 6: Once filled up, upload the form on the site by clicking on ‘Submit BOIR’.
Step 7: On the Submit page, you will have to provide your name and email. Click on the ‘upload document’ section to upload the PDF form and submit it.

BOI offline filing

Reporting Process and Timeline

BOI Reporting effectively becomes mandatory from January 1, 2024, in Illinois and the rest of the United States. All the LLCs in Illinois, Corporations, and other types of businesses registered under Illinois Secretary of State will have to file the report within the given time.

Entities in Illinois incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
Entities in Illinois incorporated or registered on or after January 1, 2024, will have to file their BOI report within 90 working days from the date of completion of company registration with Illinois SOS or similar authority.
Entities in Illinois incorporated or registered on or after January 1, 2025, will have to file their BOI report within 30 working days from the date of completion of company registration with Illinois SOS or similar authority.

Penalties for Non-Compliance with CTA (BOI Report Filing)

The authority decides to make it more difficult for the companies that fail to comply with the Corporate Transparency Act or BOI report filing. Following are the monetary and other penalties for non-compliance,

The Civil Penalty for missing the deadline in Illinois is $500 a day for the company
The Criminal Penalty for not filing the BOI Report in Illinois is $10,000
Continuing violating rules and non-compliance in Illinois can lead to 2 years imprisonment

The FinCEN makes sure that every reporting company must file the BOI report as soon as they meet the eligibility criteria. The penalty is heavy, especially for small businesses in Illinois.

BOI Reporting Required Information in Illinois

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Illinois. The compulsory information to be given in respect of each beneficial owner includes:

business requirement

Reporting Company legal name
Alternative or DBA Name (if any)
Tax Identification type
Country/Jurisdiction of Formation
Address (number, street, and apt. or suite no.)
Individual’s Full Legal Name
Date of birth
Current Address
Identifying document (Type, Number, Issuing Jurisdiction, Image)
Beneficial Owner Details (Legal Name, FinCEN ID, Address, DOB)

Entitles should confirm that the information given is correct and up-to-date as any inconsistencies or inaccuracies may attract penalties.

Ensuring their BOI reports are accurate and updated is a responsibility that these bodies have. Disputes or concealed information, therefore, need to be attended to quickly and openly as this is essential in compliance maintenance. Should organizations fail to do this, they may invite increased scrutiny with possible penalties imposed against them.

Privacy and Data Security

While the requirements for BOI reporting in Illinois aim at increasing transparency levels, there are practical challenges faced by entities regarding the identification and disclosure of beneficial ownership information. These may include:

Complexity in identifying beneficial ownership for entities with intricate ownership structures or multi-layered holding companies.
Difficulties in obtaining accurate and up-to-date information from beneficial owners, particularly where ownership interests are held indirectly or via intermediaries.
This places an additional burden on small businesses which will find it hard to deploy enough resources and personnel to deal with compliance matters.

Entities can overcome these hurdles through engagement of professionals’ advice; and having internal mechanisms that strengthen their capacity to communicate with their beneficiaries.

Regulatory and Legal Considerations

In addition to the issues above, entities in Illinois must also navigate numerous regulatory and legal considerations when reporting BOI. These include:

Balancing transparency with legitimate privacy concerns, especially for individuals who may be exposed to personal safety risks or other sensitive situations.
Addressing international implications and cross-border ownership structures since BOI reporting requirements can vary across jurisdictions.
Compliance with other relevant legislations such as anti-money laundering (AML) laws and know-your-customer (KYC) regulations is necessary as well.

What helps entities address these concerns is consulting the legal fraternity on changes occurring within the regulatory space.

Anticipated Changes and Updates

With time, FinCEN together with other relevant agencies will provide further guidance on complying with these reporting requirements as financial crime evolves. For instance, new changes could affect how they comply with these requirements. Additionally, in the future, there is a possibility of expanding or modifying the reporting requirements to deal with emerging issues or any possible loopholes.

Impact on Businesses and Financial Sector in Illinois

The introduction of BOI reporting requirements will have profound effects on both corporate entities and the financial sector as a whole. Likely consequences could include:

Increased administrative burdens and compliance costs for firms, especially at the early stages of implementation.
Enhanced due diligence procedures by financial institutions to verify the accuracy of BOI reports and identify potential red flags.
Business practices may change leading to ownership structures that are more flexible to fit into new transparency needs.
Entities that have complex ownership arrangements or those operating internationally may face some difficulties.

Nonetheless, in the long run, it can be expected that this law would go towards creating an environment where business is transparent and accountable thus enhancing trust and integrity within the financial system.

Significance of Reporting Beneficial Ownership Information

Reporting BOI is essential for several reasons. We have come up with three main reasons that CTA pointed out for having BOI reporting.

Preventing Illegal Activities: Identifying true owners helps to combat money laundering, terrorist financing, and other financial crimes in Illinois since bad actors cannot hide behind complex corporate structures.
Enhancing Transparency: It ensures corporate transparency and accountability so that entities cannot operate under cover but are required to reveal who their beneficial owner(s) are.
Facilitating Law Enforcement: Accurate data on BOI allows law enforcement authorities to investigate and prosecute fraudulent activities better thus protecting a fair business environment.

Starting an LLC in Illinois or forming a corporation in Illinois can be an eyewash of hiding other shady activities or illegal businesses. Companies often create shell companies to money launder. This reporting was started to prevent such activities in Illinois.

State Specific Data: Illinois

Capital and Incorporation

The capital of Illinois is Springfield.
The population of Illinois: 12,807,072
The Annual GDP of Illinois: 1,041,663
Incorporation in Illinois can be done through various methods including online and offline. For more details, visit Illinois Secretary of State.
Incorporation Method in Illinois (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
Incorporation Method in Illinois (Offline): Send the form by mail to Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746

Filing Fees

LLC Initial Filing Fee: $15
LLC Amendment Fees: $50
Annual Fee: $75
DBA Filing Fee: $50
Incorporation Fee: $150 for filing in-person and by mail
Registered Agent Change Fee: $25
Corporate Amendment Fee: $50

Important Offices

State Tax Office: Illinois Department of Revenue
State Insurance Office: Illinois Department of Insurance
Secretary of State Address: Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746
Department of Treasury: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734

Key Contacts

Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734
Filing Method for DBA: three methods, online, by mail, and in person filing.
Filing Fee for DBA: $50
Online Filing for DBA: For online filing, check the Illinois Cook County Clerk. There, look for the “Assumed Names” section. You will get the registration form.
Offline Filing for DBA: For filing offline, you must send the downloaded PDF form or drop it off in person at the Cook County Clerk, Vital Statistics P.O. Box 641070, Chicago IL, 60664-1070, ATTN: Assumed Name Unit

By staying compliant with the BOI reporting requirements and leveraging the resources available in Illinois, businesses can ensure they meet all regulatory obligations efficiently.

FAQs

What is a BOI report in Illinois?

A BOI report in Illinois is a Bureau of Identification report, which includes records of criminal history and arrests.

How do I file a BOI report in Illinois?

You can file a BOI report in Illinois by visiting the Illinois State Police website and following the instructions for requesting a copy of your criminal history.

How much does it cost to file a BOI report in Illinois?

The cost to file a BOI report in Illinois is 20foraname−basedsearchand20 for a name-based search and 20foraname−basedsearchand50 for a fingerprint-based search.

How long does it take to receive a BOI report in Illinois?

It may take up to 10 business days to receive a BOI report in Illinois, depending on the method of request.

Can I request a BOI report for someone else in Illinois?

Yes, you may request a BOI report for someone else in Illinois with their written consent and proper identification.

Is there a limit to how many BOI reports I can request in Illinois?

There is no limit to how many BOI reports you can request in Illinois as long as you have proper identification and authorization.

Can I request an expedited BOI report in Illinois?

Yes, you can request an expedited BOI report in Illinois for an additional fee.

Can I request a BOI report for employment purposes in Illinois?

Yes, you can request a BOI report for employment purposes in Illinois with the employer’s authorization.

What information is included in a BOI report in Illinois?

A BOI report in Illinois includes information such as criminal history, arrests, charges, convictions, and dispositions.

How far back does a BOI report in Illinois go?

A BOI report in Illinois goes back to the individual’s 17th birthday or the date of arrest, whichever is later.

Can I request a sealed BOI report in Illinois?

No, you cannot request a sealed BOI report in Illinois as sealed records are not available to the public.

Can I challenge the information on a BOI report in Illinois?

Yes, you can challenge the accuracy of the information on a BOI report in Illinois by contacting the Illinois State Police.

Can I request a BOI report for personal reasons in Illinois?

Yes, you can request a BOI report for personal reasons in Illinois, such as for immigration or licensing purposes.

How long is a BOI report valid in Illinois?

A BOI report in Illinois is valid for 90 days from the date of issuance.

Are there any restrictions on who can request a BOI report in Illinois?

Yes, there are restrictions on who can request a BOI report in Illinois, including certain employers and licensing agencies.

Can I use a BOI report from another state in Illinois?

No, you cannot use a BOI report from another state in Illinois as each state has its own criminal history records.

Is my BOI report in Illinois public record?

No, your BOI report in Illinois is not public record and is only available to individuals with proper authorization.

Can I get a copy of my BOI report in person in Illinois?

Yes, you can get a copy of your BOI report in person at the Illinois State Police headquarters with proper identification.

Can I request a BOI report online in Illinois?

Yes, you can request a BOI report online through the Illinois State Police website with a valid credit card.

Can I request a BOI report by mail in Illinois?

Yes, you can request a BOI report by mail in Illinois by sending a request form and payment to the Illinois State Police.

Can I request a BOI report over the phone in Illinois?

No, you cannot request a BOI report over the phone in Illinois for security and confidentiality reasons.

Can I request a BOI report for a minor in Illinois?

Yes, you can request a BOI report for a minor in Illinois with the minor’s parent or legal guardian’s authorization.

Can I request a BOI report for a non-profit organization in Illinois?

Yes, you can request a BOI report for a non-profit organization in Illinois with proper documentation and authorization.

Can I request a certified copy of my BOI report in Illinois?

Yes, you can request a certified copy of your BOI report in Illinois for an additional fee.

Can I use my BOI report for volunteer work in Illinois?

Yes, you can use your BOI report for volunteer work in Illinois with the organization’s authorization.

Can I request a BOI report for housing purposes in Illinois?

Yes, you can request a BOI report for housing purposes in Illinois with the landlord’s authorization.

Can I request a duplicate BOI report in Illinois?

Yes, you can request a duplicate BOI report in Illinois if the original is lost or damaged for a nominal fee.

Can I appeal the denial of my BOI report request in Illinois?

Yes, you can appeal the denial of your BOI report request in Illinois by following the appeal process outlined by the Illinois State Police.

Can I request a BOI report for insurance purposes in Illinois?

Yes, you can request a BOI report for insurance purposes in Illinois with the insurer’s authorization.

Is there a deadline for filing a BOI report in Illinois?

Yes, there is a deadline for filing a BOI report in Illinois. It is important to check the specific deadline on the Illinois Board of Investigations website.

What information do I need to include in my BOI report in Illinois?

When filing a BOI report in Illinois, you will need to include detailed information about the incident or situation you are reporting, as well as any relevant evidence or documentation.

Can I file a BOI report anonymously in Illinois?

Yes, you can file a BOI report anonymously in Illinois. However, providing your contact information may help in the investigation process.

What happens after I file a BOI report in Illinois?

After you file a BOI report in Illinois, the Board of Investigations will review the report and may conduct an investigation to gather more information.

How long does it take for the Illinois Board of Investigations to respond to a BOI report?

The response time from the Illinois Board of Investigations can vary depending on the nature of the report. It is best to check with the board for more specific details.

Are there any fees associated with filing a BOI report in Illinois?

There are typically no fees associated with filing a BOI report in Illinois. However, it is always a good idea to check with the Illinois Board of Investigations for the most up-to-date information.

Can I file a BOI report online in Illinois?

Yes, you can typically file a BOI report online through the Illinois Board of Investigations website. Check the website for specific instructions.

What should I do if I suspect someone has filed a false BOI report in Illinois?

If you suspect that someone has filed a false BOI report in Illinois, you should contact the Board of Investigations and provide any supporting evidence you may have.

Can I file a BOI report on behalf of someone else in Illinois?

In some cases, you may be able to file a BOI report on behalf of someone else in Illinois. It is best to check with the Illinois Board of Investigations for more information.

How can I follow up on a BOI report I filed in Illinois?

To follow up on a BOI report you filed in Illinois, you can contact the Board of Investigations and inquire about the status of the report.

Is filing a BOI report in Illinois confidential?

The confidentiality of BOI reports in Illinois may vary depending on the nature of the report and the investigation process. It is best to check with the Board of Investigations for more specific information.

What should I do if I have additional information to add to my BOI report in Illinois?

If you have additional information to add to your BOI report in Illinois, you can contact the Board of Investigations and provide them with the new information.

Can I file a BOI report over the phone in Illinois?

Typically, BOI reports in Illinois are filed online or through written submissions. It is best to check with the Illinois Board of Investigations for specific instructions on how to file a report.

Can I file a BOI report in person in Illinois?

In most cases, BOI reports are filed online or through written submissions in Illinois. However, you may be able to file a report in person at the Board of Investigations office. Check their website for more information.

Are there any resources available to help me file a BOI report in Illinois?

Yes, there are resources available to help you file a BOI report in Illinois. You can visit the Illinois Board of Investigations website for more information and guidance.

What types of incidents can I file a BOI report for in Illinois?

You can typically file a BOI report in Illinois for a wide range of incidents, including misconduct, fraud, and violations of laws or regulations. However, it is best to check with the Board of Investigations for specific guidelines.

Can I file a BOI report against a government agency in Illinois?

Yes, you can typically file a BOI report against a government agency in Illinois if you have evidence of misconduct or wrongdoing. Check with the Board of Investigations for more information on how to proceed.

How can I protect myself from retaliation after filing a BOI report in Illinois?

If you are concerned about retaliation after filing a BOI report in Illinois, you can contact the Board of Investigations and inform them of your concerns. They may be able to provide you with guidance on how to protect yourself.

Can I request a copy of my BOI report in Illinois?

Yes, you should be able to request a copy of your BOI report in Illinois. Contact the Board of Investigations for information on how to request a copy.

Are there any legal protections for whistleblowers who file BOI reports in Illinois?

Yes, there are typically legal protections in place for whistleblowers who file BOI reports in Illinois. It is best to check with the Board of Investigations or a legal professional for more information.

Can I amend my BOI report after filing it in Illinois?

In some cases, you may be able to amend your BOI report after filing it in Illinois. Contact the Board of Investigations for more information on how to do so.

What should I do if I receive an update on my BOI report from the Illinois Board of Investigations?

If you receive an update on your BOI report from the Board of Investigations in Illinois, carefully review the information provided and follow any instructions they give you.

Can I withdraw my BOI report in Illinois?

In some cases, you may be able to withdraw your BOI report in Illinois. Contact the Board of Investigations for more information on how to do this.

How long does the Illinois Board of Investigations take to resolve a BOI report?

The time it takes for the Board of Investigations in Illinois to resolve a BOI report can vary depending on the complexity of the case. It is best to check with the board for more specific details.

Can I request a meeting with the Illinois Board of Investigations to discuss my BOI report?

In some cases, you may be able to request a meeting with the Illinois Board of Investigations to discuss your BOI report. Contact the board for more information on how to request a meeting.

What are the potential outcomes of filing a BOI report in Illinois?

The potential outcomes of filing a BOI report in Illinois can vary depending on the nature of the report and the results of the investigation. It is best to check with the Board of Investigations for more specific information.

Can I appeal a decision made by the Illinois Board of Investigations regarding my BOI report?

In some cases, you may be able to appeal a decision made by the Illinois Board of Investigations regarding your BOI report. Contact the board for more information on the appeals process.

How can I contact the Illinois Board of Investigations for more information about filing a BOI report?

To contact the Illinois Board of Investigations for more information about filing a BOI report, you can visit their website or call their office during business hours.

In Conclusion

In the world of business, conducting illicit monetary transactions is not a new thing. To prevent that the Corporate Transparency Act came into the picture. Businesses in Illinois, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Illinois, the companies must understand the obligations to comply with the rules.

In Illinois, before you start filing the BOI Report, there are a few important points to note. Important points worth noting are:

Identifying beneficial owners from their control or ownership interests over the entity.
Reporting accurate information at all times including names, dates of birth, addresses, and identification details about beneficiaries.
Timely filing of the initial reports and updating the reports in case of changes.
When required, involve reputable third-party service providers to assist in the filing process.
Ensure compliance with relevant penalties for non –compliance.
Deal with practical challenges and legal issues related to BOI reporting.
Keep abreast of future developments and advice from relevant bodies.

Filing the BOI Report does not require complicated steps, however, it definitely requires an expert to proceed. We recommend TailorBrands, one of the best LLC formation services that not only offers free LLC formation but also offers BOI Reporting at a very reasonable cost.