A Beneficial Ownership Information (BOI) Report is a federal filing required under the Corporate Transparency Act. Alabama LLCs formed in 2024 or later must file with FinCEN (Financial Crimes Enforcement Network) within 90 days of formation. Filing is free at fincen.gov and takes about 15 minutes. Missing the deadline carries a $500/day civil penalty for willful non-compliance. This is a federal requirement — separate from all Alabama state filings.
What is a BOI Report?
The Corporate Transparency Act (CTA), enacted in 2021 and effective January 1, 2024, created a new federal reporting obligation for most small businesses in the United States. The law requires LLCs, corporations, and similar entities to disclose their beneficial owners — the real people who own or control the business — to the US Treasury's Financial Crimes Enforcement Network (FinCEN).
The purpose is anti-money laundering and financial transparency. The government wants to know who ultimately controls businesses registered in the US. This information goes into a secure federal database — it is not publicly available, but can be accessed by law enforcement and certain financial institutions.
For most Alabama small business owners, filing the BOI Report is straightforward: you report yourself and any co-owners. The form is free, online, and takes about 15 minutes.
| Required by | Corporate Transparency Act (31 U.S.C. § 5336) |
| Filed with | FinCEN (fincen.gov) — not Alabama SOS or IRS |
| Cost | Free — no filing fee |
| Deadline (new LLCs) | 90 days from formation approval |
| Deadline (LLCs formed before Jan 1, 2024) | Check fincen.gov for current deadline |
| Penalty for non-compliance | $500/day civil penalty (willful violations) |
| Criminal penalty | Up to $10,000 fine and 2 years imprisonment |
| Update required? | Yes — within 30 days of any change to reported info |
| Public record? | No — secure federal database, law enforcement only |
Who must file a BOI Report?
The BOI Report requirement applies to most Alabama LLCs and corporations — referred to as "reporting companies." You are a reporting company if your business was created by filing a document with the Alabama Secretary of State (which covers virtually all Alabama LLCs and corporations).
There are 23 categories of exempt entities. Most Alabama small businesses do not qualify for an exemption. The exemptions are designed for large, already-heavily-regulated entities:
The "large operating company" exemption requires all three: 20+ full-time US employees, more than $5 million in gross receipts in the prior year, and a physical US office. Most Alabama small businesses don't qualify. When in doubt, file — the cost is $0 and the penalty is $500/day.
What information you need to report
The BOI Report collects two types of information:
About your company
- Legal name of the LLC
- Any trade names or DBAs
- Current US street address (principal place of business)
- State of formation (Alabama)
- Federal Employer Identification Number (EIN)
About each beneficial owner
A beneficial owner is any individual who either (1) owns or controls 25% or more of the LLC's ownership interests, or (2) exercises substantial control over the LLC (such as a CEO, CFO, or anyone who makes important decisions for the business).
For each beneficial owner, you must report:
- Full legal name
- Date of birth
- Current residential street address
- A unique identifying number from an acceptable document (US passport, state driver's license, or state ID card)
- An image of that identifying document
For new LLCs formed after January 1, 2024, the report also requires information about the company applicant — the person who actually filed the Certificate of Formation with the Alabama Secretary of State. If you filed it yourself, that's you. If a formation service or attorney filed it, report them as the company applicant.
How to file the BOI Report — step by step
Gather your documents
You'll need your EIN letter from the IRS, your Alabama Certificate of Formation (for the formation date and company information), and a driver's license or passport for each beneficial owner. Have a digital image (photo or scan) of the ID ready to upload.
Go to fincen.gov/boi
Navigate to the FinCEN BOI E-Filing System at fincen.gov. Select "File BOIR" (Beneficial Ownership Information Report). No account creation is required — the system is designed for one-time use, though you can create a FinCEN ID for faster future updates.
Complete the company information section
Enter your LLC's legal name, any DBAs, EIN, principal address (physical Alabama street address — not a P.O. box), and state of formation (Alabama). Select the report type as "Initial report."
Add company applicant information (new LLCs only)
If your LLC was formed after January 1, 2024, enter the company applicant — the person who filed the Certificate of Formation. For most Alabama LLC owners who filed themselves: that's you. Provide name, date of birth, address, and ID image.
Add each beneficial owner
Enter the full legal name, date of birth, residential address, and ID information for each person who owns 25%+ of the LLC or exercises substantial control. For a single-member LLC: just you. For a 50/50 two-member LLC: both members. Upload an image of the driver's license or passport for each.
Review and submit
Review all entries carefully. The system walks you through a confirmation screen. Submit — no fee is collected. FinCEN will send a confirmation with a submission tracking number. Save this confirmation — it's your proof of filing.
When must you update the BOI Report?
Filing once is not enough if anything changes. You must file an updated BOI Report within 30 days of any change to the reported information, including:
- A new member joins the LLC or a member exits
- Ownership percentages change
- A beneficial owner moves and has a new residential address
- A beneficial owner's name changes (marriage, divorce, legal name change)
- A beneficial owner gets a new passport or driver's license (the ID number changes)
- The LLC's principal address changes
- The LLC changes its legal name or adds a new DBA
Updates use the same FinCEN E-Filing system and are also free.