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 offers professional BOI compliance tools and simple directions for those interested in addressing these worries now, expediting timely completion with simplicity and accuracy. 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 Sheboygan, WI 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 Sheboygan, a locksmith who owns 40% of the locksmithing business and makes key operational decisions 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. Business owners can stay on top of compliance by filing now through ZenBusiness, whose straightforward guidance and tools make meeting the FinCEN regulations easy and quick. Additional Resources: We want to hear from you! We need your help! Please fill out our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation! Participate in the survey here! Your support makes a difference! 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.Uncomplicating the CTA, BOI and FinCEN for Small Businesses in Sheboygan, WI
