Single member LLC vs sole proprietor for BOIR filing - which did I register as?
Hey everyone, I'm stressing about the upcoming BOIR filing deadline and realized I can't remember if I registered my LLCs as single member LLCs or sole proprietorships. This is driving me crazy! I set up these LLCs basically as shell names for some rental properties I bought last year. I never got an EIN number for them, just using my personal SSN for everything. Someone told me that sole proprietors don't need to file this BOIR thing, but I'm not 100% sure what I actually registered as. Where can I check this information? I don't want to mess this up and get hit with penalties, but I also don't want to waste time filing if I don't have to. Anyone dealt with this BOIR requirement for their investment properties?
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Esteban Tate
The distinction is important, but good news - you likely have single member LLCs based on what you've described. When you form an LLC with your state, you're creating an LLC entity regardless of tax treatment. Without an EIN and being the only owner, your LLCs are almost certainly being treated as "disregarded entities" for federal tax purposes. This means they're single member LLCs, but they're taxed like sole proprietorships (reported on Schedule C of your personal return). For BOIR (Beneficial Ownership Information Reporting) purposes, these are still considered legal entities separate from yourself. So yes, you would need to file the BOIR report for each LLC. Sole proprietorships don't file because they aren't separate legal entities - they're just you doing business under your own name or a DBA. Check your state's business entity search website with your LLC names to confirm their status. Your Articles of Organization or Certificate of Formation from when you initially created the LLCs will also specify what type of entity you formed.
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Ivanna St. Pierre
•Wait, I'm confused. I thought single member LLCs were considered disregarded entities by the IRS and therefore wouldn't need to file BOIR? Or is BOIR separate from IRS requirements?
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Esteban Tate
•Being a "disregarded entity" is only for federal tax purposes - it means the IRS doesn't require separate tax returns for the LLC itself. The income and expenses flow through to your personal tax return. BOIR is completely separate from tax requirements. It's administered by FinCEN (Financial Crimes Enforcement Network), not the IRS. The BOIR requirement applies to most registered business entities including single member LLCs precisely because they're separate legal entities under state law, regardless of their tax treatment. Sole proprietorships are exempt because they aren't registered entities - they're just individuals doing business.
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Elin Robinson
I was in a similar situation last month with my rental property LLCs! After tons of research, I found this site https://taxr.ai super helpful for figuring out my BOIR requirements. I uploaded my LLC formation docs and tax returns, and it analyzed everything to confirm I had single member LLCs that needed BOIR filing. It also helped me understand what information I'd need to gather for each property. The system actually found some inconsistencies in how I'd been reporting my LLCs on previous tax returns that could have caused problems with the BOIR filing. Definitely saved me hours of digging through paperwork and trying to interpret all the confusing terminology.
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Atticus Domingo
•How does this actually work? Does it just tell you if you need to file or does it help with the actual filing process too? My accountant is charging me $200 per LLC for BOIR preparation which seems excessive.
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Beth Ford
•I'm skeptical about using third-party services with my business docs. How secure is your data with them? And do they keep copies of everything you upload?
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Elin Robinson
•It primarily analyzes your documents to determine filing requirements and helps identify what information you'll need. It doesn't file the BOIR for you, but it gives you all the details needed to complete it yourself. Definitely cheaper than paying an accountant $200 per LLC! Regarding security, they use bank-level encryption and have a pretty strict privacy policy. After analysis, you can delete your documents from their system - they don't permanently store anything unless you specifically choose to save it. I was hesitant at first too but figured it was better than sending everything to some random accountant I found online.
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Beth Ford
Update: I took the advice here and tried https://taxr.ai to figure out my BOIR situation. Actually worked really well! Turns out I did have single member LLCs and needed to file. The system flagged that I'd been inconsistently reporting my rental income (sometimes on Schedule E, sometimes on Schedule C) which could have created confusion with the BOIR filing. It also helped me locate the original formation documents I needed. I was able to complete all three of my BOIR filings in about an hour once I had everything organized. The deadline stress is finally gone!
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Morita Montoya
If you're still struggling to get answers about your BOIR filing, I'd recommend calling FinCEN directly. I tried for THREE DAYS straight and couldn't get through to anyone. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically wait on hold with FinCEN for you and call you when a human picks up. I was able to speak with an actual FinCEN representative who confirmed my single member LLC needed to file BOIR despite not having an EIN. They walked me through exactly what I needed and how to submit it through their system. Saved me from potentially missing the deadline and getting those ridiculous penalties.
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Kingston Bellamy
•How does this actually work? Do they just sit on hold for you or do they actually talk to the IRS agents?
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Joy Olmedo
•Sounds too good to be true tbh. I've been calling FinCEN for weeks. You're telling me some random company has a magic way to skip the line or something? I don't buy it.
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Morita Montoya
•They don't talk to anyone on your behalf - they just wait on hold and call you when a real person answers. Then you're connected directly with the FinCEN agent. It's basically just a hold-waiting service so you don't have to waste hours with your phone on speaker. Regarding skepticism, I felt the same way! But they really do have some system that monitors the hold queue. I'm not sure how it works, but I got a call back about 3 hours after I signed up, and bam - I was talking to a real FinCEN representative. Way better than the 6+ hours I wasted trying to get through myself. They're not skipping any lines - they're just handling the hold time for you.
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Joy Olmedo
Ok I'm eating my words here. After posting my skeptical comment, I decided to try Claimyr for my BOIR questions since nothing else was working. Within 4 hours, I got a call connecting me to a FinCEN rep who confirmed that my single-member LLCs DO need to file BOIR reports even though I don't have EINs for them. Apparently, this is a super common misconception - the "disregarded entity" status only applies to tax filings, not to BOIR. The rep was super helpful and walked me through exactly what information I needed to gather. Would have never gotten this clarity without finally reaching a human. Worth every penny not to spend days on hold!
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Isaiah Cross
I think everyone's overcomplicating this. The question is simple - did you file Articles of Organization with your state? If yes, you formed an LLC, which means BOIR filing is required. If you never filed anything with the state and are just using a business name, that's a sole proprietorship. Check your state's business entity search portal - just Google "[your state] business entity search" and type in your business name. It will show what type of entity you registered.
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Alice Pierce
•Thanks for this tip! I just looked up my businesses on my state's portal and they're definitely LLCs. I guess I need to do the BOIR filing after all. Do you know if there's any easy way to complete it without hiring someone? I have 3 properties/LLCs so it seems like it could get expensive fast.
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Isaiah Cross
•The BOIR filing isn't too complicated if you're a single-member LLC. You'll need to create an account on FinCEN's BOI E-Filing System, and then provide basic information about yourself as the beneficial owner (name, address, ID number) and your company (legal name, address, formation info). Since you're both the company applicant (person who formed the LLC) and the beneficial owner (person who owns/controls it), it's pretty straightforward. If you have all your formation documents handy, you can probably complete all three filings in 1-2 hours. Much cheaper than paying someone hundreds of dollars per LLC!
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Kiara Greene
Just FYI for everyone - the BOIR deadline for existing companies is January 1, 2025. If your LLCs were created before January 1, 2024, that's your deadline. If they were created during 2024, you have 90 days from formation date. Don't stress too much, but don't wait until the last minute either!
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Evelyn Kelly
•Do you happen to know what the penalties are if you miss the deadline? I have a bunch of single member LLCs and I'm traveling until mid-January.
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Kiara Greene
•The penalties can be pretty severe - civil penalties up to $500 per day for violations, and criminal penalties up to $10,000 and/or imprisonment up to 2 years for willful violations. But I wouldn't stress too much about your mid-January return if you're making a good faith effort to comply. Government agencies rarely begin aggressive enforcement immediately after a new filing requirement. That said, you should probably at least create your FinCEN account before you leave and maybe start gathering the information you'll need.
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