Key Steps for Compliance
1. Determine If Your Business Needs to File a BOI Report
Most LLCs, corporations, and similar entities need to file. Exemptions include banks, publicly traded companies, and charities.
2. Identify Your Beneficial Owners
A beneficial owner is anyone with substantial control over the company or who owns 25% or more of it.
3. Gather the Required Information
You’ll need:
Business name and address
Beneficial owners' names, dates of birth, addresses, and ID document information
4. File Your BOI Report
Deadlines:
Understanding BOI Filing
Who Needs to File?
A "reporting company" includes most small businesses like LLCs and corporations. For example, an Alexandria-based graphic design LLC with multiple owners must file. Businesses such as banks, charities, and public companies are exempt.
What is a Beneficial Owner?
Beneficial owners are individuals who either:
Hold substantial control over the business (e.g., making key decisions), or
Own 25% or more of its equity.
For instance, in a locally-owned café in Alexandria, if one partner manages operations while another owns 30% equity, both qualify as beneficial owners.
What Information is Needed?
Reports must include information about both the business and its beneficial owners:
Business name, address, and formation details
Owners' names, dates of birth, addresses, and a copy of a valid ID document
How and When to File
If the current injunction is overturned, reports must be submitted electronically through FinCEN’s online portal. Filing deadlines vary:
Companies formed before 01/01/2024 must file by 01/01/2025.
Companies formed in 2024 must file within 90 days of formation.
Starting in 2025, companies have 30 days to file after formation.
Potential 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 could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties.
How ZenBusiness Can Help
Why wait to meet compliance requirements or penalties should the injunction get overturned. Business owners can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness. ZenBusiness offers an efficient way to handle your BOI filing, ensuring accuracy and saving time.
Additional Resources
We Want to Hear from You!
Your input makes a difference! Take a few minutes to complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. [Take the survey here!] Thank you for supporting our Chamber and sharing your feedback!
*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.
