The CTA, BOI and FinCEN: Clearing the Confusion for Businesses in Harbor Springs, MI

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. Business owners can stay on track with the quick and accurate assistance of ZenBusiness.

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 Harbor Springs, MI 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. This can include decision-makers, managing partners, or co-owners with significant stakes. For example, the owner of a custom printing service in Harbor Springs who handles daily operations and owns 40% of the business qualifies as 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 offers a simple and understandable approach to BOI reporting, providing businesses with accurate guidance to ensure compliance with FinCEN requirements.

Additional Resources:

• FinCEN BOI FAQ

• Beneficial Owner Definition

• FinCEN BOI Filing Services

• FinCen Definition

• Details on Preliminary Injunction

• Completing the Beneficial Ownership Information Form

• Who’s Exempt from the Corporate Transparency Act?

• FinCEN FAQ

We want to hear from you!

Join us in making an impact! Complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey here! Your participation means a lot to us!

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.