The Corporate Transparency Act mandates U.S. companies to report their beneficial owners to FinCEN, aiming to curb financial crimes by increasing transparency.
As of today, 12/04/2024, Dublin, CA business owners have 27 calendar days (or 21 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN—don’t wait, or you could face fines of $500 per day!
1. Determine if Your Business Must File.
Most LLCs, corporations, and small businesses qualify as “reporting companies.” Exemptions apply to publicly traded companies and certain regulated entities.
2. Identify Your Beneficial Owners.
A “beneficial owner” is considered anyone who either has decision-making power over a company or owns at least 25% of it.
For example, in a Dublin-based salon, a partner who owns 40% of the business and makes strategic decisions about services offered and pricing is considered a beneficial owner.
3. Gather the Required Information.
Prepare:
Business name, address, and EIN.
Beneficial owners’ names, addresses, DOBs, and ID details.
4. File Your BOI Report.
Deadlines:
Existing businesses: File by 01/01/2025.
New companies (2024): File within 90 days of formation.
New companies (2025+): File within 30 days of formation.
Those seeking a quick and easy compliance solution guidance can use the services of ZenBusiness for BOI reporting, streamlining the process to help businesses address FinCEN requirements efficiently.
Who Needs to File?
A “reporting company” is any small business, corporation, or LLC that is registered with the state, unless exempt. Exemptions apply to publicly traded companies, banks, and charities.
For example, a local coffee shop in Dublin, CA would likely need to file a BOI report.
What Is a Beneficial Owner?
A beneficial owner is someone who:
Holds substantial control over the company, OR
Owns 25% or more of it.
For example, a managing partner of a Dublin-based coffee shop who owns 35% of the business and is responsible for hiring staff and overseeing daily operations qualifies as a beneficial owner.
What Information Is Needed?
You’ll need:
Business name, address, EIN.
Owners’ names, addresses, DOBs, and identification documents.
How and When to File:
BOI reports must be submitted electronically with FinCEN. Deadlines:
Existing companies: File by 01/01/2025.
2024 startups: File within 90 days of formation.
2025+ startups: File within 30 days of formation.
Business owners can get comprehensive support through ZenBusiness BOI filing services, ensuring small businesses understand the requirements and avoid penalties with ease and confidence.
Penalties for Non-Compliance:
Failure to file can result in fines of $500 per day, up to $10,000, and potential criminal penalties. FinCEN offers a 90-day safe harbor for corrections without penalties.
Additional Resources:
We want to hear from you!
Join us in making a positive impact! Complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. We appreciate your support!
*As of December 3, 2024, a Texas federal district court has issued a preliminary injunction for all states to block the CTA and its relevant regulations. However, filing your BOI will help you avoid fines if this injunction is overruled.
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