The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, enforces regulations to combat financial crimes in the United States. With new BOIR compliance, LLCs and corporations must file reports detailing beneficial ownership to FInCEN. FinCEN issues two types of IDs: one for reporting companies and another for individuals. It is important to understand important distinctions between the two.

The Corporate Transparency Act (CTA) mandates that LLCs and Corporations in the U.S. report detailed information about their beneficial owners and company applicants to FinCEN. This includes the full legal name, date of birth, residential or business address, and an identifying number from an acceptable ID document (such as a driver's license or passport), along with an image of the document.

The Corporate Transparency Act (CTA) mandates that entities disclose their beneficial owners—those who control or own at least 25% of a company or exercise substantial control. This legislation aims to combat money laundering and other illegal activities by closing loopholes that allowed anonymity in business ownership. Companies must report beneficial ownership details to FinCEN, including names, addresses, and identification numbers, with severe penalties for non-compliance.