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

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

Montana, also known as The Treasure State, has a population of 1,112,668. 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 Montana.

What is Beneficial Ownership in Montana?

Beneficial ownership in Montana 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 Montana, 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 Montana 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 Montana.

BOI Reporting Companies (Entities) in Montana

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

Exempted Entities

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

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

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

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Online BOI Report Filing in Montana

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

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

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

BOI Reporting Required Information in Montana

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

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 Montana 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 Montana or forming a corporation in Montana 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 Montana.

State Specific Data: Montana

Capital and Incorporation

The capital of Montana is Helena.
The population of Montana: 1,112,668
The Annual GDP of Montana: 65,736
Incorporation in Montana can be done through various methods including online and offline. For more details, visit Montana Secretary of State.
Incorporation Method in Montana (Online): Create an account/Log in to the SOS site, get the online form, fill it, and submit online
Incorporation Method in Montana (Offline): there’s no offline method of filing the documents

Filing Fees

LLC Initial Filing Fee: $70
LLC Amendment Fees: $15
Annual Fee: $20
DBA Filing Fee: $20
Incorporation Fee: $70 for filing online
Registered Agent Change Fee: $0
Corporate Amendment Fee: $15

Important Offices

State Tax Office: Montana Department of Revenue
State Insurance Office: Montana State Auditor’s Office, Insurance and Securities Division
Secretary of State Address: State Capitol, Room 260 ~ PO Box 202801 Helena, Montana 59620-2801
Department of Treasury: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520

Key Contacts

Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520
Filing Method for DBA: one method, online
Filing Fee for DBA: $20
Online Filing for DBA: For online filing, check the Montana ePass website. There, look for the “Assumed Names” section. You will get the registration form.
Offline Filing for DBA: There’s no offline form submission in the state

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

FAQs

How do I file a boi report in Montana?

To file a boi report in Montana, you can contact the Montana Board of Investments directly.

Can I file a boi report online in Montana?

Yes, you can file a boi report online through the Montana Board of Investments website.

What information is required to file a boi report in Montana?

You will need to provide detailed information about your investment activity in Montana when filing a boi report.

Are there any deadlines for filing a boi report in Montana?

Yes, there are deadlines for filing a boi report in Montana, so it’s important to submit your report on time.

Is there a fee for filing a boi report in Montana?

There may be a fee associated with filing a boi report in Montana, so be sure to check with the Montana Board of Investments.

Can I file a boi report on behalf of someone else in Montana?

No, individuals filing a boi report in Montana must do so on their own behalf.

What happens after I file a boi report in Montana?

After filing a boi report in Montana, the Montana Board of Investments will review your report and take any necessary actions.

Can I amend a boi report after filing it in Montana?

Yes, you can generally amend a boi report in Montana if needed, but there may be specific requirements for doing so.

What should I do if I have questions about filing a boi report in Montana?

If you have questions about filing a boi report in Montana, you should contact the Montana Board of Investments for assistance.

How can I access boi report forms in Montana?

You can access boi report forms for filing in Montana on the Montana Board of Investments website.

Can I file a boi report by mail in Montana?

Yes, you can typically file a boi report by mail with the Montana Board of Investments in Montana.

Are there any penalties for late filing of a boi report in Montana?

Yes, there may be penalties for late filing of a boi report in Montana, so it’s important to submit your report on time.

What types of investments should be reported in a boi report in Montana?

Any investments made in the state of Montana should be reported in a boi report filed with the Montana Board of Investments.

How secure is the online filing system for boi reports in Montana?

The online filing system for boi reports in Montana is generally secure, but it’s important to follow best practices for online security.

Can I request an extension to file a boi report in Montana?

In certain circumstances, you may be able to request an extension to file a boi report in Montana, but this will depend on the specifics of your situation.

Will I receive confirmation of my boi report filing in Montana?

Yes, you should receive confirmation of your boi report filing in Montana once it has been successfully submitted to the Montana Board of Investments.

Are there any training resources available for filing boi reports in Montana?

Yes, the Montana Board of Investments may offer training resources or guidance on how to properly file a boi report in Montana.

Can I file a boi report electronically in Montana?

Yes, you can file a boi report electronically through the online system provided by the Montana Board of Investments in Montana.

What should I do if I discover errors in my boi report after filing it in Montana?

If you discover errors in your boi report after filing it in Montana, you should contact the Montana Board of Investments to discuss options for correcting the errors.

Is there a phone number I can call for assistance with filing a boi report in Montana?

Yes, you can contact the Montana Board of Investments directly by phone if you need assistance with filing a boi report in Montana.

Can I access my boi report history online in Montana?

Yes, you should be able to access your boi report history online through the Montana Board of Investments website in Montana.

How often do I need to file a boi report in Montana?

The frequency of boi report filings in Montana may vary depending on your individual circumstances, so it’s important to check with the Montana Board of Investments for specific requirements.

What should I do if I have multiple investments to report in my boi report in Montana?

If you have multiple investments to report in your boi report in Montana, be sure to list each one separately and provide all required information for each investment.

Can I file a boi report for investments made outside of Montana?

A boi report filed with the Montana Board of Investments should only include investments made within the state of Montana.

Are there any exemptions for filing a boi report in Montana?

There may be exemptions for filing a boi report in certain circumstances in Montana, but you should check with the Montana Board of Investments to confirm.

How long does it typically take to file a boi report in Montana?

The time it takes to file a boi report in Montana will vary depending on the complexity of your investments and the accuracy of the information you provide.

Can I file a boi report on behalf of a corporation in Montana?

If you are authorized to act on behalf of a corporation and have the necessary information, you may be able to file a boi report on behalf of the corporation in Montana.

Where can I find detailed instructions for filing a boi report in Montana?

Detailed instructions for filing a boi report in Montana should be available on the Montana Board of Investments website or through direct contact with the Board.

Is there a limit to the number of investments I can include in a boi report in Montana?

There may be a limit to the number of investments you can include in a single boi report in Montana, so it’s important to check with the Montana Board of Investments for specific guidance.

What information do I need to include in a boi report in Montana?

In Montana, you will need to include details of the accident or incident, such as the date, time, and location.

Can I file a boi report anonymously in Montana?

No, in Montana, boi reports must include the contact information of the person submitting the report.

Is there a deadline for filing a boi report in Montana?

It is recommended to file a boi report in Montana as soon as possible after an accident or incident occurs.

Where can I find the boi report form for Montana?

The boi report form for Montana can typically be found on the website of the agency responsible for boi investigations in the state.

Do I need to notify anyone else after filing a boi report in Montana?

You may need to notify your insurance company or employer after filing a boi report in Montana.

How long does it take to receive a response to a boi report in Montana?

The length of time it takes to receive a response to a boi report in Montana can vary depending on the complexity of the case.

Can I request a copy of the boi report in Montana?

Yes, you can request a copy of the boi report in Montana through the appropriate state agency.

Are there any fees associated with filing a boi report in Montana?

There are typically no fees associated with filing a boi report in Montana.

What should I do if I need to amend my boi report in Montana?

If you need to amend your boi report in Montana, you should contact the agency handling the investigation to provide the updated information.

Can I submit additional evidence after filing a boi report in Montana?

Yes, you can submit additional evidence to support your boi report in Montana.

Will my identity be protected if I file a boi report in Montana?

In Montana, the identity of the person filing a boi report is typically confidential.

What are the possible outcomes of a boi report in Montana?

The possible outcomes of a boi report in Montana can include recommendations for safety improvements, disciplinary actions, or legal consequences.

Can I appeal the findings of a boi report in Montana?

In Montana, you may have the right to appeal the findings of a boi report through the appropriate legal channels.

Can I sue someone based on the findings of a boi report in Montana?

The findings of a boi report in Montana may be used as evidence in a civil lawsuit, but filing a lawsuit is a separate legal process.

How can I get help if I have questions about filing a boi report in Montana?

If you have questions about filing a boi report in Montana, you can contact the relevant state agency or a legal professional for assistance.

Are there any specific reporting requirements for boi reports in Montana?

The reporting requirements for boi reports in Montana may vary depending on the type of accident or incident being reported.

Can I file a boi report for a workplace accident in Montana?

Yes, you can file a boi report for a workplace accident in Montana to ensure that the incident is properly investigated.

Are boi reports public record in Montana?

Boi reports may be subject to public record laws in Montana, but certain details may be redacted to protect privacy or sensitive information.

How can I find updates on the status of a boi report in Montana?

You can typically contact the agency handling the boi investigation in Montana for updates on the status of your report.

What happens if I don’t file a boi report in Montana?

If you fail to file a boi report in Montana, you may risk losing important evidence or missing out on potential legal recourse.

Can I request a copy of the final report for a boi investigation in Montana?

Yes, you can usually request a copy of the final report for a boi investigation in Montana once it has been completed.

Can I file a boi report for a traffic accident in Montana?

Yes, you can file a boi report for a traffic accident in Montana, especially if there are serious injuries or fatalities involved.

Can I file a boi report for a boating accident in Montana?

Yes, you can file a boi report for a boating accident in Montana, as boating accidents are also subject to investigation.

Can I file a boi report for a medical error in Montana?

Yes, you can file a boi report for a medical error in Montana to address concerns about patient safety and quality of care.

Can I file a boi report for a product defect in Montana?

Yes, you can file a boi report for a product defect in Montana, which could trigger a recall or other corrective actions.

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

In Montana, 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.