You’re an owner or officer.
You have responsibilities.
You need protection.
You need governance practices.
Governance. Policies. Practices. Your protection.
This guide shows you how.
Owner protection. Officer protection. Governance practices. Your compliance.
Read this. Implement practices. Reduce exposure.
Key Takeaways
- Assign clear BOI responsibilities—designate specific individuals responsible for filing, updates, and compliance monitoring
- Establish governance policies—create written policies that define BOI compliance procedures, deadlines, and accountability
- Document decision-making—maintain records of BOI-related decisions, including who made them and why
- Regular compliance reviews—schedule quarterly or annual reviews to assess BOI compliance status and identify any gaps
- Professional oversight—engage legal or compliance professionals to review BOI filings and governance practices
Table of Contents
Why Governance Matters
Governance reduces exposure.
What happens without governance:
- Responsibilities are unclear
- Compliance fails
- Exposure increases
- Protection is weak
What happens with governance:
- Responsibilities are clear
- Compliance is maintained
- Exposure is reduced
- Protection is strong
The reality: Governance enables protection.
Assigning Responsibilities
Clarify who does what:
Designate Compliance Officer
What to do:
- Assign specific individual
- Define responsibilities clearly
- Provide authority needed
- Establish reporting structure
Why it matters: Clear designation prevents gaps.
Define Roles
What to define:
- Who files initial BOI
- Who handles updates
- Who monitors compliance
- Who responds to inquiries
Why it matters: Defined roles ensure coverage.
Establish Accountability
What to establish:
- Reporting requirements
- Review processes
- Performance metrics
- Consequences for failures
Why it matters: Accountability ensures compliance.
Pro tip: Assign responsibilities. Compliance officer, defined roles, accountability. See our BOI guide for filing requirements.
Governance Policies
Create written policies:
BOI Compliance Policy
What to include:
- Filing requirements
- Update procedures
- Deadline management
- Compliance monitoring
Why it matters: Policy provides framework.
Ownership Documentation Policy
What to include:
- How ownership is documented
- When updates are required
- Where records are stored
- Who has access
Why it matters: Policy ensures consistency.
Change Management Policy
What to include:
- How ownership changes are handled
- When BOI updates are required
- Who is notified
- How changes are documented
Why it matters: Policy prevents missed updates.
Pro tip: Create policies. BOI compliance, ownership documentation, change management. See our BOI documentation guide for record-keeping.
Documentation Practices
Maintain proper documentation:
Decision Records
What to document:
- BOI-related decisions
- Who made decisions
- When decisions were made
- Rationale for decisions
Why it matters: Records support good faith.
Compliance Records
What to document:
- Filing dates and confirmations
- Update dates and confirmations
- Compliance review dates
- Issues identified and resolved
Why it matters: Records demonstrate compliance.
Communication Records
What to document:
- Internal communications about BOI
- External communications with FinCEN
- Professional guidance received
- Questions asked and answers received
Why it matters: Records show diligence.
Pro tip: Maintain documentation. Decision records, compliance records, communication records. See our BOI documentation guide for documentation practices.
Compliance Reviews
Schedule regular reviews:
Quarterly Reviews
What to review:
- Filing status
- Update requirements
- Ownership changes
- Compliance gaps
Why it matters: Quarterly reviews catch issues early.
Annual Assessments
What to assess:
- Overall compliance status
- Policy effectiveness
- Process improvements
- Training needs
Why it matters: Annual assessments ensure ongoing compliance.
Trigger-Based Reviews
What triggers reviews:
- Ownership changes
- New entity formation
- Regulatory updates
- Compliance issues
Why it matters: Trigger-based reviews address specific events.
Pro tip: Schedule reviews. Quarterly reviews, annual assessments, trigger-based reviews. See our BOI routine guide for compliance habits.
Professional Oversight
Engage professional oversight:
Legal Review
What to review:
- BOI filings before submission
- Governance policies
- Compliance procedures
- Risk exposure
Why it matters: Legal review reduces risk.
Compliance Consultation
What to consult on:
- Filing requirements
- Update obligations
- Best practices
- Risk mitigation
Why it matters: Compliance consultation ensures accuracy.
Ongoing Support
What support to provide:
- Filing assistance
- Update management
- Compliance monitoring
- Issue resolution
Why it matters: Ongoing support maintains compliance.
Pro tip: Engage professionals. Legal review, compliance consultation, ongoing support. See our legal checklist guide for attorney questions.
Your Next Steps
Implement governance. Protect owners and officers. Reduce exposure.
This Week:
- Review this guide
- Assign BOI responsibilities
- Create governance policies
- Establish documentation practices
This Month:
- Schedule compliance reviews
- Engage professional oversight
- Document decisions and compliance
- Train relevant personnel
Going Forward:
- Maintain governance practices
- Conduct regular reviews
- Update policies as needed
- Protect owners and officers
Need help? Check out our BOI filing guide for filing requirements, our BOI documentation guide for record-keeping, our BOI routine guide for compliance habits, and our registered agent guide for business address setup.
Stay informed about business strategies and tools by following us on X (Twitter) and signing up for The Initiative Newsletter.
Sources & Additional Information
This guide provides general information about BOI governance practices and owner/officer protection. Your specific situation may require different considerations.
For BOI filing, see our BOI Filing Guide.
For BOI documentation, see our BOI Documentation Guide.
For BOI routine, see our BOI Routine Guide.
For registered agent services, see our Registered Agent Guide.
Consult with professionals for advice specific to your situation.
