The Corporate Transparency Act (CTA) mandates that businesses report Beneficial Ownership Information (BOI) to FinCEN to enhance transparency and reduce financial crimes.

As of today, November 27, 2024, Franklin, Alabama, business owners have 35 calendar days (or 25 business days) left to file their BOI report with FinCEN—don’t delay, or you could face penalties of $500 per day!

 

---

 

What You Need to Do:

1. Determine if Your Business Must File.

Most small LLCs, corporations, and similar entities qualify as "reporting companies" and must file. Exemptions include large, publicly traded companies and regulated entities. Learn more about state requirements for BOI filing.

2. Identify Your Beneficial Owners.

Beneficial owners are individuals with substantial control or 25% or more ownership of your company. For instance, a Franklin-based landscaping company owner managing operations and owning a 30% stake is a beneficial owner.
Understand the full definition of beneficial owners.

3. Gather the Necessary Information.

You’ll need:

• Business name, address, EIN.

• Beneficial owners’ names, addresses, DOBs, and ID documents.

For step-by-step guidance, check out the Beneficial Ownership Report Guide.

4. File Your BOI Report.

Deadlines:

• Existing companies: File by 01/01/2025.

• New companies (2024): Within 90 days of creation.

• New companies (2025+): Within 30 days of creation.

Learn how ZenBusiness can help you file your report efficiently.

 

---

 

More About the BOI Filing:

Who Needs to File?

A "reporting company" includes most LLCs, corporations, and other small businesses. Exemptions apply to publicly traded companies, regulated entities, and nonprofits. For example, a family-owned Franklin bakery would likely need to file, but a national chain restaurant would not.
Find out more about exempt businesses.

What Is a Beneficial Owner?

A beneficial owner is someone who:

1. Has substantial control over the business, OR

2. Owns 25% or more of it.

For example, the managing partner of a small Franklin consulting firm with 50% ownership is a beneficial owner. Learn more about beneficial ownership requirements.

What Information Is Needed?

Businesses must report:

• Legal name, address, EIN.

• For each beneficial owner: Name, address, DOB, ID type/number, and issuing jurisdiction.
  Both business and owner details are required. Explore detailed BOI compliance steps.

How and When to File:

BOI reports must be submitted electronically through FinCEN's portal. Deadlines are:

• Existing companies: File by 01/01/2025.

• 2024 startups: File within 90 days of formation.

• 2025+ startups: File within 30 days of formation.
  For guidance, review the Completing the Beneficial Ownership Information Form: Step-by-Step Guide.

Penalties for Non-Compliance:

Failure to file or providing false information can result in fines of up to $10,000 or $500 per day. A 90-day safe harbor is available to correct errors. Learn more about FinCEN penalties.

Get Help from ZenBusiness:

ZenBusiness can assist with BOI filings, offering expert support to ensure accuracy and compliance while saving you time. Let ZenBusiness handle your filing today.

 

---

 

Additional BOI Resources:

• FinCEN BOI FAQ

• Small Business Compliance Guide

• Who’s Exempt from the Corporate Transparency Act?

• BOI Filing for Small Businesses

• State Requirements for BOI Filing

• A Guide to BOI Compliance

Help us and our Chamber by completing a quick BOI survey by December 18, 2024! It only takes a few minutes, and for every 25 responses, our Chamber earns a $100 donation. [Click here to take the survey!] We appreciate your time and participation!

*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.