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Compliance Transparency Act and Beneficial Owner Information Filings

As many of you are aware in 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. As of January 1, 2024, many small businesses will be required to file Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN).  We want you to know that we’re ready to help!


  • Companies formed before January 1, 2024 have one year to submit the initial filing.
  • Companies formed after January 1, 2024 have 30 days to file.  If a BOI filing is required, Velawcity is able to file the initial BOI as part of the formation process.
  • If a company’s info changes, an updated BOI should be filed.
  • Reporting companies are defined as:
    • A domestic reporting company is (i) a corporation, (ii) a limited liability company (LLC), or (iii) created by a filing with a secretary of state or any similar office.
    • A foreign reporting company is: (i) a corporation, LLC, or other entity, (ii) formed under the laws of a foreign country, and (iii) registered to do business in any state or tribal jurisdiction by a filing with a secretary of state or any similar office.
  • Exempt companies include but are not limited to:
    • Public companies that are required to report to the SEC.
    • “Large operating companies” are companies having over $5 million in U.S. revenue, more than 20 full-time U.S. employees, and an operating presence at a physical location in the United States.
    • Tax-exempt entities and governmental authorities.
    • Accounting firms, insurance companies, banks, credit unions, registered investment companies, certain investment advisors, and certain other entities that are subject to regulatory oversight.
    • Subsidiaries that are wholly owned, directly or indirectly, by exempt entities.
  • Beneficial Owners are defined as individuals who own 25% or more of the reporting company; has substantial control over the company such as senior officers, directors or managers who may appoint senior officers; or anyone who is an “important decision maker”.
  • Company Applicant is an individual who directly files or is primarily responsible for the filing of the organizational document, such as Velawcity paralegals.

Required Info

Company Info required to be reported:

  • legal name,
  • any DBAs,
  • address,
  • jurisdiction of formation, and
  • taxpayer identification number.

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Beneficial owner info that is required to be reported:

  • full legal name,
  • date of birth,
  • current address, and
  • passport or driver’s license number, with an image of that document.

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In light of these requirements, if we’re forming an entity that is required to file a BOI, Velawcity will request a copy of passports or driver’s licenses for all beneficial owners as part of the formation process.

It is important to note that the FinCEN will store all information in a nonpublic database, therefore there is no risk to personal information.


Willful failure to file or update a BOI may result in penalties of $500 per day, up to $10,000 and two years imprisonment.

Key Links

According to the NASS Summary “Each state must notify each corporation or LLC of the requirement to file beneficial ownership information with FinCen.

FinCEN Small Entity Compliance Guide

FinCEN Key Questions


Velawcity is working with its partner to offer access to an efficient and cost-effective platform to ensure that all your BOI filings are made in the most efficient and cost-effective manner.  Detailed information will be provided at a later date.

If you have any questions regarding how Velawcity can help to handle your client’s BOI filings, or rescue your bottom line in any other way, please contact

More About Velawcity Legal Support Services

Velawcity Legal Support Services is an Alternative Legal Services Provider (ALSP) that provides competitive edge solutions to empower lawyers nationwide with high-quality, efficient and cost-effective paralegal services. Velawcity paralegals are virtual, on-demand senior paralegals, each with a minimum of fifteen years’ experience working in law firms and corporate legal departments.  Whether you need assistance with year-end dissolutions, a daily addition to your legal team, periodic paralegal support, quick research or assistance on a specific project, Velawcity Legal Support Services is your cost-effective, responsive team member.

DISCLAIMER: Velawcity Legal Support Services provides services exclusively to lawyers and their clients.  Velawcity does not provide legal advice.  To determine which entity is best suited for your business, please consult a licensed business attorney or contact us to be put in touch with one of our attorney clients. 

Written by Denise Annunciata,
President of Velawcity Legal Support Services© 2023 Velawcity Holdings, Inc.


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