FinCEN Says Businesses Must File BOI Reports by 01/01/2025 or May Face $500 Per Day Fines!
The Corporate Transparency Act (CTA) mandates that U.S. businesses report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) to prevent financial crimes like money laundering and tax evasion.
As of today, 11-27-2024, Ludington business owners have 35 calendar days (or 25 business days) left to file their BOI report with FinCEN—don't wait, or you could face fines of $500 per day!
Action Items:
Determine if your business needs to file a BOI report. [Deadline: ASAP]
Reporting companies include most corporations, LLCs, and similar entities, with exemptions for certain businesses like banks, publicly traded companies, and charities.
Identify your beneficial owners and consider using ZenBusiness to simplify the process. [Deadline: 12-10-2024]
A beneficial owner has substantial control or owns at least 25% of your business.
Gather the required information for your BOI report. [Deadline: 12-17-2024]
You'll need names, addresses, dates of birth, and identification information for both your company and its beneficial owners.
File your BOI report. [Deadline: Existing companies - 01/01/2025; New companies (formed in 2024) - 90 days after creation/registration; New companies (formed in 2025 or later) - 30 days after creation/registration]
Click here to learn how ZenBusiness can help you identify your beneficial owners and file your BOI report with ease.
Who Needs to File?
A "reporting company" is any U.S. business entity that must disclose its beneficial owners to FinCEN. This includes most corporations, LLCs, and similar organizations. However, some entities like large publicly traded companies, regulated financial institutions, and certain large entities are exempt. For example, a small LLC in Ludington that is privately held by a few individuals would need to file a BOI report.
What is a Beneficial Owner?
A beneficial owner is someone who either controls the company or holds at least 25% ownership. For instance, if an individual owns a quarter of an LLC in Ludington or has significant control over its operations, they would be considered a beneficial owner.
What Information is Needed?
To complete the BOI filing, your business must provide key details about itself and its beneficial owners, including names, addresses, dates of birth, and identification numbers. This helps FinCEN track ownership structures and prevent illicit activities.
How and When to File
Reports must be filed electronically through FinCEN’s online system. Companies formed before January 1, 2024, must file by January 1, 2025, while companies formed in 2024 must file within 90 days of their formation. New companies formed in 2025 or later must file within 30 days.
Penalties for Non-Compliance
Failing to file or submitting false information can result in fines of up to $500 per day, with potential imprisonment. However, there is a 90-day "safe harbor" period where companies can correct any mistakes without facing penalties.
Get Help with ZenBusiness
ZenBusiness can help simplify the process of identifying your beneficial owners and filing your BOI report. Their expertise ensures accuracy and saves you time, helping you avoid potential fines. Learn more about ZenBusiness BOI Filing services.
Additional Resources
Take our quick BOI survey by December 18, 2024 and support our Chamber! It only takes a few minutes, and for every 25 responses, our Chamber will receive a $100 donation. [Click here to take the survey now!] 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.