The CTA, BOI and FinCEN: Clearing the Confusion for Businesses in Hayden, ID - ZenBusiness

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 aligned with regulations by using 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 coffee shop in Hayden, ID 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. For example, in Hayden, the owner of a yoga studio who holds a 40% stake in the business and makes strategic decisions about class offerings and pricing is considered 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 clear guidance and tools for BOI reporting, simplifying the process and ensuring compliance with FinCEN requirements.

Additional Resources:

A Guide to BOI Compliance

FinCEN BOI Filing Services

FinCen Definition

Beneficial Owner Definition

Details on Preliminary Injunction

BOI Filing Services for LLCs

Completing the Beneficial Ownership Information Form

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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.