Beneficial Ownership Information​

If you intend to engage MBE CPAs to assist with fulfilling your Beneficial Ownership Information (BOI) Filing Requirement for your US entity, please fill out our engagement letters here.

Understanding the Corporate Transparency Act (CTA): What You Need to Know​

Is Your Business Aware of a New Regulation Called The Corporate Transparency Act CTA?

The Corporate Transparency Act (CTA) is a new law aimed at preventing money laundering and other illegal activities. It requires certain businesses to report information about their “beneficial owners” to the government. This one-page guide will explain the basics of the CTA and help you determine if your business is affected.

Beneficial Ownership Information​
Business Owner Smiling

This page will guide you through the key points of the CTA and Beneficial Ownership Information (BOI) reporting, including:

Don’t wait until it’s too late!

Non-compliance with the CTA can result in hefty penalties.

Are some Companies Exempt?

A total of 23 types of entities are exempt from the reporting requirements for beneficial ownership information. These encompass publicly traded companies that meet specific criteria, non-profits, and select large operating companies.

Who Needs to File a BOI Report?

Most businesses formed after January 1, 2024, will need to report beneficial ownership information within 90 days of formation. Existing businesses have until January 1, 2025, to report. There are exceptions, though, such as publicly traded companies and certain regulated institutions. Unless exempt, most businesses created by filing documents with a Secretary of State (corporations, LLCs, etc.) need to file a BOI report.

To determine if your company falls under the category of a ‘Reporting Company’ as defined by the CTA, take a moment to review the informative flowchart below. If your company meets the criteria outlined in the “reporting company” definition and does not qualify for an exemption, it would be considered a reporting company. Our goal is to provide you with the necessary resources and guidance to navigate these regulations successfully. Feel free to reach out to us if you require any assistance or clarification on this matter.

Who Needs to File a BOI Report?

What Information Needs to be Reported?

You’ll need to report the legal name, address, date of birth, and government ID for each beneficial owner. The information you report depends on when your business was created:

  • Businesses created before January 1, 2024: Report information about the company and its beneficial owners.
  • Businesses created on or after January 1, 2024: Report information about the company, its beneficial owners, and company applicants.
What is a Beneficial Owner?
A beneficial owner is the individual who ultimately owns or controls a company, despite not necessarily appearing as an owner on paper. In other words, this includes people holding at least a 25% ownership stake or those possessing the authority to make crucial company decisions.
What is a Company Applicant?

The company applicant is the individual who initiated the business formation process by filing the necessary paperwork. To easily identify this person, refer to our helpful graphic.

When are BOI Reports Due?

The deadline for compliance varies depending on your business’s formation date. For specific details, please consult this page. Generally speaking, the deadline falls within a 30-90-day window following your business’s inception or any subsequent changes.

How to File a BOI Report

MBE CPAs can alleviate the burden of filing your Beneficial Ownership Information (BOI) report by providing specialized assistance. To utilize this service, a fee of $400 per reporting entity applies.

What is a FinCEN ID, and do I need one?

A FinCEN ID is a unique identifier assigned by the Financial Crimes Enforcement Network (FinCEN) to individuals or entities. Consequently, this ID can be used as a substitute for personal information when filing BOI reports. While not mandatory, obtaining a FinCEN ID can simplify the reporting process and protect sensitive information.

Can I file with MBE CPAs’ BOI Reporting if I own multiple companies?

Absolutely! Our system is specifically designed to efficiently manage BOI reporting for business owners with multiple entities. In fact, we provide specialized tools and services to simplify the filing process across your entire business portfolio.

MBE Reporting Form

The BOI Reporting Form authorizes MBE CPAs to file the Beneficial Ownership Information (BOI) report on behalf of the reporting company.
 
This means that MBE CPAs has been granted the legal authority to collect, verify, and submit the required information about the company’s beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
Essentially, the form designates MBE CPAs as the official representative of the company to fulfil the BOI reporting requirements.

MBE BOI Representation

Essentially, the company (you, the submitter) is affirming that they have reviewed the data, understand the implications of filing, and are taking full ownership of the report’s content. MBE CPAs is protected from liability for any errors or omissions in the report.

Please Fill Out Both Forms

MBE Beneficial Ownership Information​ Engagement Letter

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Dear Client: This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. Please read this letter carefully, as it is important to both MBE CPAs (“Firm”) and (“Client”) that you understand and accept the terms under which we have agreed to perform our services, as well as Management’s responsibilities under this agreement. Services You have asked for our firm’s assistance to help you submit Client’s initial Beneficial Ownership Information (“BOI”) report to the Financial Crimes Enforcement Network (“FinCEN”), as required under the Corporate Transparency Act (“CTA”). The BOI report is required to be submitted using FinCEN’s electronic filing system. For reporting companies in existence prior to January 1, 2024, the BOI report is due no later than January 1, 2025, and for reporting companies created on or after January 1, 2024, the BOI report is required to be filed within 90 days after their formation or registration. It is important that your company’s specific facts and circumstances be considered to assess the applicability of the CTA-related provisions given the current guidance as promulgated. You have asked for our assistance to help you with your determination whether an exemption may apply to your entity or whether any relationships constitute “beneficial ownership.” Our limited advisory services for purposes of filing your initial BOI report under the terms of this agreement will be performed based on our professional judgment as accountants given the facts provided to us and the CTA provisions as currently promulgated. As we are not attorneys, we will not be rendering any legal advice or providing legal interpretation as part of this engagement. Subsequent developments changing the facts provided to us, or updated guidance from FinCEN or other regulatory agencies, may affect the advice previously provided. These effects may be material. Client agrees to provide us with all the required information and documentation deemed necessary to comply with applicable CTA regulations for your entity, all beneficial owners, and if applicable, the company applicant(s), for purposes of your BOI report filing. In connection with the performance of our limited services, we will rely on the accuracy and completeness of the information and documentation provided by Client and your representatives. As Firm will not audit, review, or otherwise verify the information and documentation you provide, we cannot provide assurance on the accuracy and completeness of the information provided. Further, as we are not attorneys, we will not be responsible for making any legal determinations that may be required or for certifying or opining on your company’s compliance with the CTA. Management Responsibilities and Representations It is our understanding that Management has designated qualified individuals with suitable skills, knowledge and/or experience, preferably within senior management, to be responsible and accountable for overseeing the specified limited advisory services and the filing of Client’s initial BOI report performed as part of this engagement. By your signature below, you acknowledge that Management agrees to evaluate the adequacy of, and accept responsibility for, the results of all the services performed as part of this agreement. By your signature below, you represent, certify, and warrant to Firm that all information provided to us for purposes of this engagement will be true, correct, and complete, and agree that Firm may rely solely, without independent verification, on the accuracy and completeness of the information provided. As our services are limited in nature, our engagement cannot be relied on to disclose errors, fraud, or noncompliance with laws and regulations that may exist. Client also understands and acknowledges that the Firm’s advisory services are limited in nature per the terms of this agreement and will be performed as accountants and not attorneys, and as such, the Firm will not be rendering any legal advice. Therefore, Management accepts responsibility to engage separate legal counsel to assist in addressing any legal issues that may arise, which would include, but not be limited to, legal advice or interpretation with respect to determining if an exemption applies to the nature of your entity or whether certain legal relationships constitute “beneficial ownership.” Client acknowledges and understands that under the terms of this agreement, Firm will not be responsible for providing any further services related to Client’s ongoing requirement to update and/or correct reports with FinCEN. Management accepts full responsibility for monitoring all reportable changes for its company and its beneficial owners (e.g., a change in beneficial owners; any change to a beneficial owner’s name, address, or unique identifying number; or any other information previously provided to FinCEN) and for ensuring that such changes are timely reported to FinCEN. Note that Reporting Companies must file updated or corrected reports within thirty (30) days of reportable changes or discovery of inaccurate information in previously filed reports. Penalties for noncompliance can be significant. If you need our assistance to prepare updated or corrected reports, Management agrees to advise us in writing at least fifteen (15) business days prior to the due date for submission and, if we agree to perform such services, we will confirm that in writing to you under a separate engagement letter. Before we can submit your initial BOI report to FinCEN, we will require a letter from Management that confirms Management’s responsibilities and representations made for purposes of this engagement, as well as Management’s authorization for Firm to file Client’s BOI report on your behalf. Fees Our fees will be $400 per reporting entity. Multiple entity discounts may be negotiated but are not guaranteed. This fee is based on the significant time investment required in researching and maintaining the required expertise on the new reporting requirements and an estimate of the time required to perform the work. You must also pay other expenses (e.g. postage, shipping, travel, software etc.) relating to the services on top of our flat fee. Each invoice is payable upon receipt of the invoice. We will assess a 1.5% monthly late fee on all invoices unpaid after thirty (30) days of the invoice date. In accordance with our firm policies, work may be suspended if your account becomes sixty (60) days or more overdue and will not be resumed until your account is paid in full. We will not perform any work on your current year services until all your prior invoices are paid in full or a sufficient payment plan is in place. Other Matters Because of the importance of oral and written management representations to the effective performance of our services, Client releases and indemnifies Firm and its personnel from any and all claims, liabilities, costs and expenses attributable to any misrepresentation by Management and its representatives. We may from time to time, and depending on the circumstances and nature of the services we are providing, share Client’s confidential information with third-party service providers, some of whom may be cloud-based, but we remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality terms with all service providers to maintain the confidentiality of your information and will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure appropriate confidentiality terms with a third-party service provider, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Although we will use our best efforts to make the sharing of your information with such third parties secure from unauthorized access, no completely secure system for electronic data transfer exists. As such, by your signature below, you understand that Firm makes no warranty, expressed or implied, on the security of electronic data transfers. In connection with this engagement, we may communicate with you or others via email transmission. We take reasonable measures to secure your confidential information in our email transmissions. However, as emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure or communication of email transmissions, or for the unauthorized use or failed delivery of emails transmitted by us in connection with the performance of this engagement. In that regard, Client agrees that Firm shall have no liability for any loss or damage to any person or entity resulting from the use of email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of sales or anticipated profits, or disclosure or communication of confidential or proprietary information. It is our policy to keep records related to this engagement for three years. However, Firm does not keep any original client records, so we will return those to you at the completion of the services rendered under this engagement. It is your responsibility to retain and protect your records (which includes any work product we provide to you as well as any records that we return) for possible future use, including potential examination by any government or regulatory agencies. Firm does not accept responsibility for hosting client information; therefore, you have the sole responsibility for ensuring you retain and maintain in your possession all your financial and non-financial information, data and records. By your signature below, you acknowledge and agree that upon the expiration of the three-year period, Firm shall be free to destroy our records related to this engagement. If any dispute arises among the parties hereto, the parties agree to first try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its applicable rules for resolving professional accounting and related services disputes before resorting to litigation. The costs of any mediation proceeding shall be shared equally by all parties. Client and Firm both agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the applicable rules for resolving professional accounting and related services disputes of the American Arbitration Association, except that under all circumstances the arbitrator must follow the laws of the state in which Firm services are rendered. Such arbitration shall be binding and final. IN AGREEING TO ARBITRATION, WE BOTH ACKNOWLEDGE THAT IN THE EVENT OF A DISPUTE OVER FEES CHARGED BY THE ACCOUNTANT, EACH OF US IS GIVING UP THE RIGHT TO HAVE THE DISPUTE DECIDED IN A COURT OF LAW BEFORE A JUDGE OR JURY AND INSTEAD WE ARE ACCEPTING THE USE OF ARBITRATION FOR RESOLUTION. The prevailing party shall be entitled to an award of reasonable attorneys’ fees and costs incurred in connection with the arbitration of the dispute in an amount to be determined by the arbitrator. We appreciate the opportunity to be of service to your company and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. Very truly yours, MBE CPAs, LLP
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MBE Beneficial Ownership Information​ Representations Letter

"*" indicates required fields

Are you signing for a Business?*
Name*
Does this agreement cover multiple parties?*

Please read the full agreement, scroll to complete.

Dear MBE CPAs: This representation letter is provided to MBE CPAs (“Firm”) in connection with the preparation and filing of the initial Beneficial Ownership Information (“BOI”) report for (herein referred to as “Management,” “we,” “our,” or “us”) to the Financial Crimes Enforcement Network (“FinCEN”) as required by the Corporate Transparency Act (“CTA”). To the best of our knowledge and belief, Management confirms the following representations: 1. Management understands and acknowledges that Firm’s engagement is limited solely to providing limited advisory services to our company for the preparation and submission of our initial BOI report to FinCEN as required under the CTA. 2. Management understands that Firm’s limited services do not include providing legal advice with respect to determining if an exemption applies to our company or whether any relationships constitute “beneficial ownership.” As such, Management understands that the Firm will not be responsible for certifying or opining on our company’s compliance with the CTA. Management accepts full responsibility to engage separate legal counsel to assist in addressing any legal issues that may arise. 3. Management has made available to Firm all the required information and documentation necessary under applicable CTA regulations for the company, our beneficial owners, and if applicable, any company applicant(s). 4. Management acknowledges and understands that Firm will not be responsible for providing any further services related to our company’s ongoing requirement to update and/or correct BOI reports with FinCEN. Management accepts full responsibility for monitoring all reportable changes for our company and our beneficial owners (e.g., a change in beneficial owners; any change to a beneficial owner’s name, address, or unique identifying number; or any other information previously provided to FinCEN) and for ensuring that such changes are timely reported to FinCEN. 5. Management agrees to notify Firm in writing at least fifteen (15) business days prior to the due date for submission if we require assistance from Firm in filing an updated and/or corrected report on our behalf. Management acknowledges that Firm is under no obligation to provide such additional services unless mutually agreed to under a separate written agreement. 6. Management authorizes Firm to file our initial BOI report on our behalf. 7. Management represents, certifies, and warrants to Firm that all information provided to the Firm for purposes of the preparation and submission of the initial BOI report as required under the CTA is true, correct, and complete, and we agree that Firm may rely solely, without independent verification, on the accuracy and completeness of the information provided. 8. Management acknowledges the importance of oral and written management representations in the performance of Firm’s limited services and agrees to release and indemnify Firm and its personnel from any and all claims, liabilities, costs, and expenses attributable to any misrepresentation by Management and our representatives.
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