Let’s continue with our BOI REPORT series, addressing frequent questions to ensure full and accurate compliance. This time, we focus on the topic of addresses, clarifying common doubts about which address to report for beneficial owners and what to do if a reporting company lacks a principal place of business in the United States.
The complexities surrounding Beneficial Ownership Information (BOI) reporting extend beyond the identification of beneficial owners to include specific obligations regarding address reporting. This article addresses two frequent questions: Which address must be reported for beneficial owners, and what happens when a reporting company lacks a principal place of business in the United States?
Reporting the Beneficial Owner’s Address
When reporting a beneficial owner’s address, the reporting company must submit the individual’s current residential address at the time of filing. If the individual does not have a permanent residential address, the most recent residential address available at the time of filing must be provided.
In the event of a change, such as relocation, the reporting company is obligated to update the BOI report within 30 calendar days of the change.
Address Requirements for Reporting Companies Without a U.S. Principal Place of Business
For entities with no principal place of business in the United States, FinCEN mandates alternative solutions to ensure accurate reporting:
Primary U.S. Business Location:
- If the company conducts business activities at a single location within the United States, this location should be reported as the company’s address.
- If the company operates from multiple U.S. locations, it may choose one of those locations where important correspondence is regularly received to designate as the primary address.
No Physical U.S. Business Operations:
- If the company has no U.S.-based business activities, the designated address must be that of the individual or entity legally responsible for accepting service of process under applicable state or jurisdictional law (commonly referred to as the “registered agent” or “registered office”).
By using the registered agent’s address, the reporting company implies:
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- The agent has consented to the use of their address.
- The company does not conduct any other business operations within the United States.
Practical Implications for Compliance
Understanding and correctly reporting the required address information is a key element of BOI compliance. This ensures that companies avoid potential missteps, such as providing outdated or irrelevant address details, which may lead to penalties. Tax professionals play a critical role in guiding businesses, particularly those with international operations, through these nuanced requirements.
Relevance for Taxpayers and Tax Professionals
For BOI compliance, the address requirement reflects FinCEN’s efforts to ensure transparency while accommodating various business structures and operations. Reporting companies, whether U.S.-based or foreign, must carefully evaluate their operational locations and legal designations to meet these standards effectively. Proper reporting is not only a matter of legal obligation but also a step toward enhanced regulatory accountability.