The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.
As of today, 12/05/2024, Fairhope, AL business owners have 26 calendar days (or 19 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN.
1. Determine if Your Business Must 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 boutique in Fairhope, AL would likely need to file a BOI report.
2. Identify Your Beneficial Owners.
A ‘beneficial owner’ is someone who has substantial control over a company or owns at least 25% of it. For instance, in Fairhope, a co-owner of a landscaping business who owns 40% of the shares and makes major strategic decisions qualifies as a beneficial owner.
3. Gather the Required Information.
Prepare:
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Business name, address, and EIN.
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Beneficial owners’ names, addresses, DOBs, and ID details.
4. File Your BOI Report.
Deadlines:
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Existing businesses: File by 01/01/2025.
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New companies (2024): File within 90 days of formation.
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New companies (2025+): File within 30 days of formation.
ZenBusiness offers the opportunity to simplify the BOI reporting process, ensuring businesses comply with FinCEN regulations efficiently.
Penalties for Non-Compliance:
While a Texas federal district court’s preliminary injunction puts this requirement on hold, many experts expect that to be overturned. In that event, failure to file may lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties. FinCEN provides a 90-day safe harbor period for corrections without penalties.
Waiting to see what happens next could put your business in a bind, leading to a last minute paperwork scramble and possible penalties. You can avoid the problems related to noncompliance with help from ZenBusiness, whose tools and services make filing your BOI report easy.
Additional Resources:
We want to hear from you!
We need your help! Participate in our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Join the survey here! Your feedback is invaluable!
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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