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

How to file a BOI Report in Michigan: 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 Michigan, 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.

Michigan, also known as The Great Lakes State, has a population of 10,135,438. 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 Michigan.

What is Beneficial Ownership in Michigan?

Beneficial ownership in Michigan 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 Michigan, 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 Michigan 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 Michigan.

BOI Reporting Companies (Entities) in Michigan

Not every company, located in Michigan, 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 Michigan Secretary of State or its equivalent.

Exempted Entities

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

Sole proprietorships or any business structure that does not require registration under Michigan 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 Michigan?

In Michigan, 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 Michigan has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Michigan

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Online BOI Report Filing in Michigan

Step 1: For online filing, reporting companies in Michigan 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 Michigan

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 Michigan and the rest of the United States. All the LLCs in Michigan, Corporations, and other types of businesses registered under Michigan Secretary of State will have to file the report within the given time.

Entities in Michigan incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
Entities in Michigan 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 Michigan SOS or similar authority.
Entities in Michigan 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 Michigan 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 Michigan is $500 a day for the company
The Criminal Penalty for not filing the BOI Report in Michigan is $10,000
Continuing violating rules and non-compliance in Michigan 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 Michigan.

BOI Reporting Required Information in Michigan

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Michigan. 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 Michigan 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 Michigan 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 Michigan

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 Michigan 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 Michigan or forming a corporation in Michigan 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 Michigan.

State Specific Data: Michigan

Capital and Incorporation

The capital of Michigan is Lansing.
The population of Michigan: 10,135,438
The Annual GDP of Michigan: 626,680
Incorporation in Michigan can be done through various methods including online and offline. For more details, visit Michigan Secretary of State.
Incorporation Method in Michigan (Online): Get the online form from Secretary of State, fill it up, and submit. Don’t refresh the page during the process. It will erase everything.
Incorporation Method in Michigan (Offline): Send the form by mail to Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau — Corporations Division, P.O. Box 30054, Lansing, MI 48909. Drop it off in person at 2501 Woodlake Circle, Okemos, MI

Filing Fees

LLC Initial Filing Fee: $50
LLC Amendment Fees: $25
Annual Fee: $25
DBA Filing Fee: 25forLLCsand25 for LLCs and 25forLLCsand10 for LPs
Incorporation Fee: $60 for filing online, in person, and by mail
Registered Agent Change Fee: $5
Corporate Amendment Fee: $25

Important Offices

State Tax Office: Michigan Department of Treasury
State Insurance Office: Michigan Department of Insurance and Financial Services
Secretary of State Address: Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau — Corporations Division, P.O. Box 30054, Lansing, MI 48909
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: 25forLLCsand25 for LLCs and 25forLLCsand10 for LPs
Online Filing for DBA: For online filing, check the Michigan Corporations Online Filing. 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 to the Michigan Department of Licensing and Regulatory Affairs, Corporations, Securities & Commercial Licensing Bureau, Corporations Division, P.O. Box 30054, Lansing, MI 48909 or drop it off in person at the 2501 Woodlake Circle, Okemos, MI

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

FAQs

How do I file a BOI report in Michigan?

To file a BOI report in Michigan, you can visit the Department of Insurance and Financial Services website.

What information do I need to provide when filing a BOI report in Michigan?

When filing a BOI report in Michigan, you will need to provide details such as the nature of the complaint, contact information, and any relevant documents.

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

In Michigan, there is no specific deadline for filing a BOI report, but it is recommended to do so as soon as possible after the incident.

Can I file a BOI report anonymously in Michigan?

In Michigan, you may be able to file a BOI report anonymously, but keep in mind that providing your information can help with the investigation.

How long does it take to process a BOI report in Michigan?

The processing time for a BOI report in Michigan can vary depending on the complexity of the case and the backlog of reports.

Can I file a BOI report online in Michigan?

Yes, you can file a BOI report online through the Department of Insurance and Financial Services website in Michigan.

Do I need to pay a fee to file a BOI report in Michigan?

No, there is no fee required to file a BOI report in Michigan.

What happens after I file a BOI report in Michigan?

After filing a BOI report in Michigan, the Department of Insurance and Financial Services will review the information and may conduct an investigation.

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

Yes, you may be able to file a BOI report on behalf of someone else in Michigan with their consent.

Is there a statute of limitations for filing a BOI report in Michigan?

In Michigan, there may be a statute of limitations for filing a BOI report, so it is best to file as soon as possible after the incident.

Can I file a BOI report for any type of insurance in Michigan?

Yes, you can file a BOI report for any type of insurance in Michigan, such as auto, health, or homeowners insurance.

How can I follow up on a BOI report in Michigan?

To follow up on a BOI report in Michigan, you can contact the Department of Insurance and Financial Services for updates on the investigation.

Do I need a lawyer to file a BOI report in Michigan?

While you do not need a lawyer to file a BOI report in Michigan, you may choose to consult with one for guidance on the process.

How can I make sure my BOI report is taken seriously in Michigan?

To ensure your BOI report is taken seriously in Michigan, provide detailed and accurate information, and include any relevant evidence.

Can I file a BOI report against more than one insurance company in Michigan?

Yes, you can file a BOI report against more than one insurance company in Michigan if you have experiences with multiple providers.

Are there specific forms to fill out when filing a BOI report in Michigan?

The Department of Insurance and Financial Services in Michigan may provide specific forms for filing a BOI report, which you can find on their website.

What should I do if I disagree with the outcome of a BOI report in Michigan?

If you disagree with the outcome of a BOI report in Michigan, you may have the option to appeal the decision or seek legal advice.

Can I file a BOI report for a claim denial in Michigan?

Yes, you can file a BOI report for a claim denial in Michigan if you believe it was handled improperly.

Is there a specific department in charge of handling BOI reports in Michigan?

The Department of Insurance and Financial Services oversees the handling of BOI reports in Michigan.

What should I do if I receive a notice about a BOI report filed against me in Michigan?

If you receive a notice about a BOI report filed against you in Michigan, cooperate with the investigation and provide any necessary information.

Can I file a BOI report for a delayed claim payment in Michigan?

Yes, you can file a BOI report for a delayed claim payment in Michigan if you believe the delay was unjustified.

How can I check the status of a BOI report in Michigan?

To check the status of a BOI report in Michigan, you can contact the Department of Insurance and Financial Services.

Can I file a BOI report for insurance fraud in Michigan?

Yes, you can file a BOI report for insurance fraud in Michigan if you suspect that fraudulent activity has taken place.

What should I do if I suspect a company is violating insurance laws in Michigan?

If you suspect a company is violating insurance laws in Michigan, you can file a BOI report with the Department of Insurance and Financial Services.

Can I file a BOI report for bad faith insurance practices in Michigan?

Yes, you can file a BOI report for bad faith insurance practices in Michigan if you believe an insurance company has acted in bad faith.

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

Yes, the Department of Insurance and Financial Services in Michigan provides resources and guidance for filing a BOI report, such as online forms and contact information.

Can I file a BOI report for a denied claim appeal in Michigan?

Yes, you can file a BOI report for a denied claim appeal in Michigan if you believe the denial was unfair or unjust.

What is the purpose of filing a BOI report in Michigan?

The purpose of filing a BOI report in Michigan is to address complaints and disputes related to insurance companies and policies, ensuring fair practices and consumer protection.

Can an attorney help me with filing a BOI report in Michigan?

Yes, an attorney can assist you with filing a BOI report in Michigan, providing legal advice and representation throughout the process.

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

In Michigan, you will need to include details such as the location, time, and description of the incident in your BOI report.

Is filing a BOI report in Michigan mandatory?

Yes, in Michigan, certain incidents such as accidents involving injury or damage must be reported to the BOI.

How long do I have to file a BOI report in Michigan after an incident?

Generally, a BOI report in Michigan should be filed within 24 hours of the incident.

Can I amend a BOI report after it has been submitted in Michigan?

No, once a BOI report is submitted in Michigan, it cannot be amended.

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

No, there are no fees for filing a BOI report in Michigan.

How soon can I expect a response after filing a BOI report in Michigan?

The timeframe for receiving a response after filing a BOI report in Michigan may vary depending on the nature of the incident reported.

What can I do if I disagree with the findings of a BOI report in Michigan?

You can appeal the findings of a BOI report in Michigan by following the procedures outlined by the Bureau of Intelligence and Operations.

What can I expect the outcome to be after filing a BOI report in Michigan?

The outcome of a BOI report in Michigan may vary depending on the nature of the incident and the results of the investigation conducted by the Bureau of Intelligence and Operations.

Can I file a BOI report in Michigan for a non-criminal incident?

Yes, you can file a BOI report in Michigan for non-criminal incidents such as accidents or emergencies.

Is there a specific form I need to use to file a BOI report in Michigan?

Yes, there is a specific form available on the Michigan BOI website that should be used to file a report.

How can I check the status of a BOI report that I filed in Michigan?

You can inquire about the status of a BOI report filed in Michigan by contacting the Bureau of Intelligence and Operations.

Can I file a BOI report in Michigan without providing my personal information?

No, in Michigan, you will need to provide your personal information when filing a BOI report.

What are the consequences of not filing a BOI report when required in Michigan?

Failure to file a BOI report in Michigan when required may result in legal penalties or fines.

Can I file a BOI report in Michigan for incidents that occurred outside of the state?

No, a BOI report in Michigan should only be filed for incidents that occurred within the state’s jurisdiction.

Are there any exceptions to the requirement of filing a BOI report in Michigan?

There may be exceptions to the requirement of filing a BOI report in Michigan for certain types of incidents or situations.

Can I file a BOI report in Michigan for historical incidents?

It is best to file a BOI report in Michigan for incidents that have recently occurred rather than historical incidents.

Can I request a copy of a BOI report filed in Michigan by someone else?

You may be able to request a copy of a BOI report filed in Michigan by someone else through a public records request.

What are the steps to take if I need to make changes to a BOI report filed in Michigan?

If you need to make changes to a BOI report filed in Michigan, you should contact the Bureau of Intelligence and Operations for assistance.

Can I file a BOI report in Michigan for incidents that occurred on private property?

Yes, you can file a BOI report in Michigan for incidents that occurred on private property as long as it falls within the state’s jurisdiction.

Can I obtain a copy of a BOI report filed in Michigan for insurance or legal purposes?

Yes, you can request a copy of a BOI report filed in Michigan for insurance or legal purposes by following the appropriate procedures.

Can I file a BOI report in Michigan on behalf of a minor child or dependent?

Yes, as a legal guardian or representative, you can file a BOI report in Michigan on behalf of a minor child or dependent.

What are the potential outcomes of filing a BOI report in Michigan for a traffic incident?

Filing a BOI report in Michigan for a traffic incident may result in an investigation by law enforcement and potential legal repercussions.

Are there specific guidelines for filing a BOI report in Michigan for workplace incidents?

Yes, when filing a BOI report in Michigan for workplace incidents, employers and employees should follow specific guidelines outlined by state regulations.

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 Michigan, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Michigan, the companies must understand the obligations to comply with the rules.

In Michigan, 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.