The Corporate Transparency Act (CTA) requires many U.S. businesses to submit Beneficial Ownership Information (BOI) to FinCEN, aiming to curb financial crimes like tax evasion and money laundering.
As of today, November 27, 2024, Chicago-Naperville-Joliet business owners have 35 calendar days (or 25 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN—don’t wait, or you could face fines of $500 per day!
Action Items for Businesses
1. Determine if Your Business Needs to File
Identify if your business qualifies as a “reporting company.” Most corporations, LLCs, and partnerships must file unless exempt (e.g., publicly traded companies, charities).
2. Identify Your Beneficial Owners
Define "beneficial owner" as anyone with substantial control or owning 25% or more of the company. Consider using ZenBusiness to streamline this step.
3. Gather Required Information
Collect information like names, addresses, birth dates, and identification for both the business and its beneficial owners.
4. File Your BOI Report
Deadlines:
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Existing companies (before 01/01/2024): File by 01/01/2025
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New companies (formed in 2024): File within 90 days of creation
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New companies (from 2025 onward): File within 30 days of creation
Click here to learn how ZenBusiness can simplify the BOI filing process.
More About the BOI Filing
Who Needs to File?
A “reporting company” includes most LLCs and corporations registered in the U.S. Certain businesses, such as banks or nonprofits, are exempt. For example, a small landscaping LLC in Naperville would likely need to file.
What is a Beneficial Owner?
A beneficial owner either (1) exercises substantial control or (2) owns 25% or more of the company. For example, in a small bakery in Chicago, the co-owners who each hold 30% ownership are beneficial owners, as is the manager who oversees daily operations.
What Information is Needed?
Businesses must provide their legal name, address, formation state, and EIN. Beneficial owners’ information includes their full names, birth dates, addresses, and ID numbers (e.g., driver’s license).
How and When to File
BOI reports are submitted electronically via FinCEN’s portal. Companies formed before January 1, 2024, must file by January 1, 2025. Companies formed this year must file within 90 days of their formation, and businesses formed in 2025 or later must file within 30 days of creation.
Penalties for Non-Compliance
Failure to file or providing false information can result in fines of up to $500 per day and even criminal penalties. Businesses have a 90-day window to correct errors without penalty.
Get Help with ZenBusiness
ZenBusiness offers expert guidance to simplify your BOI filing. Their services ensure compliance, save time, and provide peace of mind. Learn more here.
Resources for BOI Compliance
Don't delay—start your BOI filing today!
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.
ZenBusiness
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Sallie Clark Marketing Coordinator
- November 27, 2024
- (512) 765-4985
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