The Corporate Transparency Act (CTA) requires most businesses to disclose Beneficial Ownership Information (BOI) to FinCEN, a measure aimed at curbing financial crimes such as money laundering and tax evasion.
As of today, November 26, 2024, Fairmont, Minnesota business owners have 36 calendar days (or 26 business days) to submit their BOI reports to FinCEN. Act quickly to avoid fines of $500 per day!
Action Plan for Fairmont Business Owners:
1. Determine if your business must file.
Most LLCs, corporations, and similar entities need to file unless exempt (e.g., banks, charities, or publicly traded companies).
2. Identify your beneficial owners.
Beneficial owners are individuals who own at least 25% of the company or have significant control. Use ZenBusiness to simplify the process.
3. Gather required information.
Prepare details like names, dates of birth, addresses, and government-issued ID details for each beneficial owner.
4. File your BOI report electronically.
Existing companies (pre-2024): File by 01/01/2025.
New companies (formed in 2024): File within 90 days of formation.
New companies (2025+): File within 30 days of formation.
Get expert help from ZenBusiness to ensure compliance.
What You Need to Know About BOI Filing:
Who Needs to File?
"Reporting companies" include most small businesses, such as LLCs and corporations. Exemptions apply to banks, nonprofits, and publicly traded companies. For example, a family-owned restaurant in Fairmont organized as an LLC must file, but a local nonprofit providing community services would not.
Who is a Beneficial Owner?
A beneficial owner is someone who:
Owns 25% or more of the company, OR
Exercises substantial control over operations.
For instance, if three partners co-own a Fairmont-based bakery, each holding a 33% share, all three must be reported as beneficial owners.
What Information is Required?
Businesses need to provide:
Company information: Name, address, and EIN.
Beneficial owner details: Name, date of birth, residential address, and government-issued ID (e.g., driver’s license or passport).
This ensures compliance and promotes transparency in business operations.
How and When to File?
All BOI reports must be submitted electronically through FinCEN’s secure system. Deadlines are:
Existing businesses (pre-2024): File by 01/01/2025.
New businesses (formed in 2024): File within 90 days of registration.
New businesses (formed in 2025+): File within 30 days of registration.
Penalties for Non-Compliance:
Failure to file or providing false information may result in:
Daily fines of $500, capped at $10,000.
Potential imprisonment for willful violations.
A 90-day safe harbor allows businesses to correct errors without penalties.
ZenBusiness Can Help:
ZenBusiness offers:
Start your BOI filing with ZenBusiness right now!
Additional BOI Resources:
Avoid last-minute stress—file your BOI report by January 1, 2025, to stay compliant and dodge hefty fines!
