The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.

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 could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties.

However, filing your Beneficial Ownership Information (BOI) report will help you avoid fines if this injunction is overruled. Waiting could mean scrambling to meet compliance requirements or penalties. ZenBusiness helps businesses confront BOI concerns quickly thanks to simple guidelines and painless procedures. This is ideal for SBOs that want to avoid trouble and tackle the filing process in advance.

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 bakery in Naperville, IL would likely need to file a BOI report.

2. Identify Your Beneficial Owners.

A “beneficial owner” is someone who either has substantial control over a company or owns at least 25% of it. For example, in a Naperville pest control company, if one of the partners owns 40% of the business and is responsible for strategic decisions and business operations, they would be 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.

ZenBusiness provides SBOs with easy tips and tools tailored for BOI compliance, thus an opportunity to stay ahead of further measures and avoid penalties. This type of service also makes reporting your company’s information quick and manageable.

Additional Resources:

• Beneficial Owner Definition

• A Guide to BOI Compliance

• Completing the Beneficial Ownership Information Form

• FinCEN FAQ

• BOI Filing for Small Businesses

• Details on Preliminary Injunction

We want to hear from you!

We value your feedback! Please fill out our BOI survey by December 18, 2024, and remember, for every 25 responses, our Chamber will receive a $100 donation! Take the survey here! Thank you for 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.