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

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

Texas, also known as The Lone Star State, has a population of 30,345,487. 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 Texas.

What is Beneficial Ownership in Texas?

Beneficial ownership in Texas 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 Texas, 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 Texas 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 Texas.

BOI Reporting Companies (Entities) in Texas

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

Exempted Entities

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

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

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

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Online BOI Report Filing in Texas

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

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

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

BOI Reporting Required Information in Texas

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

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 Texas 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 Texas or forming a corporation in Texas 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 Texas.

State Specific Data: Texas

Capital and Incorporation

The capital of Texas is Austin.
The population of Texas: 30,345,487
The Annual GDP of Texas: 2,402,237
Incorporation in Texas can be done through various methods including online and offline. For more details, visit Texas Secretary of State.
Incorporation Method in Texas (Online): Create an account/Log in to the SOS site, get the e-form, fill it, and submit online. Or get the online PDF, fill it up and upload it back on the site.
Incorporation Method in Texas (Offline): Send the form by mail to or drop it off in person at Secretary of State, P.O. Box 13697, Austin, TX 78711-3697. Or Fax it to (512) 463 – 5709

Filing Fees

LLC Initial Filing Fee: $300
LLC Amendment Fees: $150
Annual Fee: $0 because it is not mandatory
DBA Filing Fee: varies by county
Incorporation Fee: $300 for filing online, by mail, in person filing, or by Fax
Registered Agent Change Fee: $15
Corporate Amendment Fee: $25

Important Offices

State Tax Office: Texas Comptroller of Public Accounts
State Insurance Office: Texas Department of Insurance
Secretary of State Address: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697
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: two methods, by mail and in person.
Filing Fee for DBA: varies by county
Online Filing for DBA: There is no online filing available
Offline Filing for DBA: For filing offline in Texas, you must send the accomplished DBA filing form to the County Clerk’s Office where your business is located. The mailing address and drop-off location will vary depending on the specific county.

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

FAQs

How do I file a boi report in Texas?

To file a boi report in Texas, you can submit the report online through the Texas Department of Family and Protective Services website.

Where can I find the form to file a boi report in Texas?

The form to file a boi report in Texas can be found on the Texas Department of Family and Protective Services website.

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

In a boi report in Texas, you will need to include detailed information about the alleged child abuse or neglect, as well as any other relevant information.

Can I file a boi report anonymously in Texas?

Yes, you can file a boi report anonymously in Texas, although providing your contact information can help investigators follow up if needed.

What happens after I file a boi report in Texas?

After you file a boi report in Texas, the report will be reviewed by investigators who will determine if further action is needed to protect the child.

How long does it take to process a boi report in Texas?

The processing time for a boi report in Texas can vary depending on the severity of the allegations and the caseload of the investigators.

What is the phone number to report child abuse in Texas?

The phone number to report child abuse in Texas is 1-800-252-5400.

Can I file a boi report in Texas by mail?

Yes, you can file a boi report in Texas by mail by sending the completed form to the appropriate address listed on the Department of Family and Protective Services website.

Are there any penalties for filing a false boi report in Texas?

Yes, filing a false boi report in Texas is considered a criminal offense and can result in legal consequences.

Can I file a boi report in Texas if I suspect a child is being neglected?

Yes, you can file a boi report in Texas if you suspect a child is being neglected, as neglect is a form of abuse that must be reported.

What is the process for investigating a boi report in Texas?

The process for investigating a boi report in Texas includes interviewing the child and family members, reviewing any evidence, and determining the best course of action to ensure the child’s safety.

How does the Texas Department of Family and Protective Services handle boi reports?

The Texas Department of Family and Protective Services handles boi reports by assigning investigators to review the report, assess the situation, and take appropriate action to protect the child.

Can I file a boi report in Texas if I suspect emotional abuse?

Yes, you can file a boi report in Texas if you suspect emotional abuse, as all forms of abuse should be reported to protect the well-being of the child.

What is the role of law enforcement in investigating boi reports in Texas?

Law enforcement may be involved in investigating boi reports in Texas, especially in cases where criminal activity is suspected or immediate action is required to protect the child.

Is it mandatory to report child abuse in Texas?

Yes, it is mandatory to report child abuse in Texas if you have reason to believe that a child is being abused or neglected, as it is required by law.

Can I file a boi report in Texas if I suspect sexual abuse?

Yes, you can file a boi report in Texas if you suspect sexual abuse, as this is a serious form of abuse that must be addressed immediately to ensure the safety of the child.

How can I check the status of a boi report in Texas that I filed?

You can check the status of a boi report in Texas that you filed by contacting the Texas Department of Family and Protective Services and providing your report number.

Are there any resources available for individuals who file boi reports in Texas?

Yes, there are resources available for individuals who file boi reports in Texas, including support services and information on how to recognize and report child abuse.

Can I file a boi report in Texas if I am not a resident of the state?

Yes, you can file a boi report in Texas even if you are not a resident of the state, as long as the alleged abuse or neglect occurred within Texas.

How can I download the boi report form in Texas online?

You can download the boi report form in Texas online by visiting the Texas Department of Family and Protective Services website and locating the form in the reporting section.

Is there a deadline for filing a boi report in Texas after witnessing abuse?

There is no specific deadline for filing a boi report in Texas after witnessing abuse, but it is recommended to report any suspected abuse or neglect as soon as possible to ensure the child’s safety.

Can I file a boi report in Texas if I suspect a child is being physically abused?

Yes, you can file a boi report in Texas if you suspect a child is being physically abused, as physical abuse is a serious form of harm that must be addressed promptly.

How can I obtain a copy of the boi report I filed in Texas?

You can obtain a copy of the boi report you filed in Texas by contacting the Texas Department of Family and Protective Services and requesting a copy of the report.

Are there any exceptions to reporting child abuse in Texas?

There are limited exceptions to reporting child abuse in Texas, such as cases involving privileged communication or situations where reporting the abuse may put the child at further risk.

Can I file a boi report in Texas if I suspect abuse in a daycare or school setting?

Yes, you can file a boi report in Texas if you suspect abuse in a daycare or school setting, as all allegations of abuse must be taken seriously and reported to protect the child.

How can I get more information about boi reporting in Texas?

You can get more information about boi reporting in Texas by visiting the Texas Department of Family and Protective Services website or contacting their hotline for assistance and guidelines.

Can I file a boi report in Texas if I suspect abuse by a caregiver or family member?

Yes, you can file a boi report in Texas if you suspect abuse by a caregiver or family member, as all forms of abuse should be reported to ensure the child’s safety and well-being.

What protections are in place for individuals who file boi reports in Texas?

There are protections in place for individuals who file boi reports in Texas, including confidentiality of the reporter’s identity and immunity from liability for reporting suspected child abuse in good faith.

How do I file a BOI report in Texas?

You can file a BOI report in Texas by visiting the Texas Department of Insurance website and following the instructions.

Is filing a BOI report in Texas mandatory?

Yes, in Texas, it is mandatory to file a BOI report if you have been involved in a reportable accident.

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

When filing a BOI report in Texas, you will need to provide details about the accident, including date, time, location, and parties involved.

Can I file a BOI report online in Texas?

Yes, you can file a BOI report online in Texas through the Texas Department of Insurance website.

How long do I have to file a BOI report in Texas?

In Texas, you are required to file a BOI report within 10 days of a reportable accident.

Can I download a printable BOI report form for Texas?

Yes, you can download a printable BOI report form for Texas from the Texas Department of Insurance website.

What happens if I fail to file a BOI report in Texas?

Failing to file a BOI report in Texas can result in penalties and fines.

Are there specific requirements for filing a BOI report in Texas?

Yes, Texas has specific requirements for filing a BOI report, including providing accurate and detailed information about the accident.

Can I file a BOI report in Texas if I was not at fault in the accident?

Yes, regardless of fault, you are required to file a BOI report in Texas if you were involved in a reportable accident.

Who can file a BOI report in Texas?

Any individual involved in a reportable accident in Texas can file a BOI report.

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

The purpose of filing a BOI report in Texas is to document the details of reportable accidents and ensure compliance with state regulations.

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

You can follow up on a BOI report filed in Texas by contacting the Texas Department of Insurance and providing your report number.

Can I amend a BOI report filed in Texas?

Yes, you can usually amend a BOI report filed in Texas by contacting the Texas Department of Insurance and providing updated information.

How long does it take for a BOI report to be processed in Texas?

The processing time for a BOI report in Texas can vary, but you can check the status by contacting the Texas Department of Insurance.

Do I need to notify my insurance company after filing a BOI report in Texas?

Yes, it is recommended to notify your insurance company after filing a BOI report in Texas to expedite the claims process.

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

Yes, you can request a copy of your BOI report in Texas by contacting the Texas Department of Insurance and following their procedures.

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

While it is not required to have a lawyer to file a BOI report in Texas, legal representation can be helpful for complex cases.

How can I obtain a copy of the Texas BOI report form?

You can obtain a copy of the Texas BOI report form from the Texas Department of Insurance website or request one by mail.

Can I file a BOI report in Texas for a hit-and-run accident?

Yes, you can and should file a BOI report in Texas for a hit-and-run accident to document the incident.

Where can I find more information about filing a BOI report in Texas?

You can find more information about filing a BOI report in Texas on the Texas Department of Insurance website or by contacting their office.

Do I have to pay a fee to file a BOI report in Texas?

There is typically no fee to file a BOI report in Texas, but you may incur charges if you request additional services or reports.

Can I file a BOI report for a minor in Texas?

If a minor is involved in a reportable accident in Texas, a parent or legal guardian must file the BOI report on their behalf.

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

Yes, in Texas, you are required to file a BOI report within a specified timeframe after a reportable accident occurs.

How can I check the status of my BOI report in Texas?

You can check the status of your BOI report in Texas by contacting the Texas Department of Insurance and providing your report number.

What is the role of law enforcement in a BOI report in Texas?

Law enforcement may be involved in documenting reportable accidents in Texas, but you are still required to file a separate BOI report with the Texas Department of Insurance.

Can I dispute the findings of a BOI report in Texas?

If you disagree with the findings of a BOI report in Texas, you can usually request a review or revision by providing additional information.

Are there consequences for not filing a BOI report in Texas?

Yes, failing to file a BOI report in Texas can result in penalties, fines, and potential legal consequences.

Can I file a BOI report in Texas if I am not a resident of the state?

Yes, if you are involved in a reportable accident in Texas, you are required to file a BOI report regardless of your residency status.

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

If you are authorized to do so, you can file a BOI report in Texas on behalf of someone else involved in a reportable accident.

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

In Texas, 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.