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Requesting beneficial ownership information from a corporate client

Check the reporting obligation first, then ask for exactly what FinCEN's own report requires.

Asking a company client for beneficial ownership details is only worth doing once you know the Corporate Transparency Act reporting obligation actually applies to that client. This guide sets out the practical steps once it does. It is general information, not legal or compliance advice.

Action plan

1 Confirm the client entity currently has a reporting obligation before asking Under the current rule, most domestic companies are exempt, so don't ask by default.

FinCEN's March 2025 interim final rule narrowed the definition of reporting company to entities formed under a foreign country's law that have registered to do business in a US state or tribal jurisdiction. A US-formed (domestic) company is currently exempt from beneficial ownership information reporting. Confirm the client entity's place of formation and registration status before asking for beneficial ownership details, rather than requesting them as a routine intake step.

  • Confirm where the client entity was actually formed, not just where it operates
  • Treat a US-formed (domestic) entity as currently exempt from BOI reporting
  • Only proceed to request beneficial ownership details for a foreign-formed entity registered to do business in the US

Done when: The client entity's current BOI reporting obligation has been confirmed before any beneficial ownership request is made

See the current status of Corporate Transparency Act beneficial ownership reporting
2 Identify who actually counts as a beneficial owner It's a specific test, not just whoever the client names as an owner.

FinCEN's beneficial ownership framework identifies a beneficial owner as an individual who directly or indirectly owns or controls at least 25% of the entity's ownership interests, or who exercises substantial control over the entity, such as a senior officer or someone with equivalent authority. Only individuals (natural persons) count; a trust, company, or other entity is not itself a beneficial owner.

  • Check both the 25% ownership-interest test and the substantial-control test independently
  • Include only individuals, never a trust, company, or other entity as the named beneficial owner
  • Ask the client directly who exercises senior-officer-level control, not only who holds shares

Done when: Every individual meeting the 25% ownership test or the substantial-control test has been identified for the client entity

FinCEN: Beneficial Ownership Information
3 Request the specific fields FinCEN's report requires A name alone isn't enough, since the report needs a defined set of identifying details.

For each identified beneficial owner, FinCEN's own BOI report filing instructions call for the individual's full legal name, date of birth, current residential address, a unique identifying number from an acceptable identifying document, and a complete, clear, readable image of that document. An individual who already holds a FinCEN identifier may provide that instead of the full detail set.

  • Request full legal name, date of birth, and current residential address for each beneficial owner
  • Request a unique identifying number and a clear image of an acceptable identifying document
  • Ask whether the individual already has a FinCEN identifier they can provide instead

Done when: Full legal name, date of birth, address, and identifying document detail (or a FinCEN identifier) have been requested for each beneficial owner

FinCEN: BOI report filing instructions
4 Ask again when the details change A reporting company is expected to keep this information current, not file it once and forget it.

Where a client entity remains a reporting company under the current rule, FinCEN expects the beneficial ownership information on file to stay accurate. Confirm the specific update timeframe against FinCEN's own current guidance before relying on a fixed number, and rebuild the request into your process whenever a beneficial owner's details, or the list of who qualifies as one, changes.

  • Re-request beneficial ownership details when a beneficial owner's name, address, or identifying document changes
  • Re-check who qualifies as a beneficial owner after any change in ownership or senior officers
  • Confirm the current update-filing timeframe directly against FinCEN's own guidance rather than assuming a fixed figure

Done when: A process exists for re-requesting beneficial ownership details whenever the underlying facts change

See verifying identity documents came from a reliable source