The CTA, BOI and FinCEN: What Does this Mean for Cleveland, TX Businesses
The Corporate Transparency Act (CTA) mandates that businesses across Cleveland, TX, report their Beneficial Ownership Information (BOI) to FinCEN to improve transparency and reduce financial crime.
As of today, 11-26-2024, Cleveland business owners have 36 calendar days (or 27 business days) remaining to submit their BOI report to FinCEN—don’t delay, or you risk fines of up to $500 per day!
Steps for Compliance
1. Check If Your Business Must File
Deadline: ASAP
Most LLCs, corporations, and similar entities must file unless they are exempt, such as charities or publicly traded companies.
2. Identify Your Beneficial Owners
Deadline: 12-10-2024
A beneficial owner is anyone who:
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Owns 25% or more of the company, or
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Exercises significant control over company operations.
3. Gather Necessary Information
Deadline: 12-17-2024
Collect the following details:
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Business: Name, EIN, and principal address.
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Beneficial Owners: Names, residential addresses, dates of birth, and ID details.
4. Submit Your BOI Report
Deadlines:
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Existing companies (formed 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 (2025 onward): File within 30 days of creation.
ZenBusiness can simplify your filing process—click here to learn more.
BOI Reporting: What Cleveland Businesses Need to Know
Who Needs to File?
“Reporting companies” include most local businesses, such as a Cleveland-based LLC operating a landscaping service. Exemptions include banks, publicly traded firms, and nonprofits.
What Is a Beneficial Owner?
Beneficial owners are individuals who own at least 25% of a company or significantly influence its operations. For instance, a local restaurant co-owned equally by two partners would consider both as beneficial owners.
What Information Is Required?
You’ll need to provide details about both the company and its beneficial owners, including:
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Full legal names.
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Residential addresses.
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Dates of birth.
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Identification document information.
How to File and Deadlines
BOI reports must be filed electronically with FinCEN. Filing deadlines vary:
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Existing companies: File by 01/01/2025.
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New companies (formed in 2024): File within 90 days of formation.
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Future companies (2025+): File within 30 days.
Penalties for Non-Compliance
Failing to file or providing false information can result in fines up to $500 per day and imprisonment. However, FinCEN offers a 90-day safe harbor to correct errors.
How ZenBusiness Can Help
ZenBusiness provides expert assistance to ensure your BOI filing is accurate and stress-free. Avoid penalties by letting them handle the process for you. Learn how they can help today.
Resources for BOI Filing
Cleveland business owners, don’t wait—file your BOI report now to ensure compliance and avoid penalties!
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.
