The Corporate Transparency Act (CTA) may require businesses to report Beneficial Ownership Information (BOI) to FinCEN to enhance transparency and deter financial crimes.
As of December 3, 2024, however, a Texas federal district court’s preliminary injunction put 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. What should businesses in Palm Beach Gardens do?
What You Need to Do:
1. Determine if Your Business Must File.
Most LLCs, corporations, and small businesses qualify as "reporting companies." Exceptions include publicly traded companies and certain regulated entities.
2. Identify Your Beneficial Owners.
Beneficial owners are individuals who have substantial control or 25% or more ownership of your business. For example, the managing partner of a Palm Beach Gardens-based event planning company with a 40% stake qualifies.
3. Gather the Required Information.
Collect:
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Business name, address, and EIN.
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Beneficial owners’ names, addresses, DOBs, and ID details.
4. File Your BOI Report.
Deadlines:
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Existing businesses: File by 01/01/2025.
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New companies (2024): File within 90 days of formation.
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New companies (2025+): File within 30 days of formation.
ZenBusiness can help you file your report quickly and easily.
Key BOI Filing Details:
Who Needs to File?
"Reporting companies" include most LLCs, corporations, and small businesses in Palm Beach Gardens. Exemptions apply to publicly traded and regulated entities. For example, a family-owned boutique in Palm Beach Gardens would likely need to file, while a national retail chain would not.
What Is a Beneficial Owner?
A beneficial owner is someone who:
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Holds substantial control over the business, OR
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Owns 25% or more of it.
For instance, a co-owner of a Palm Beach Gardens café with a 35% ownership stake and decision-making authority qualifies as a beneficial owner.
What Information Is Needed?
You’ll need:
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Business name, address, EIN.
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Owners’ names, addresses, DOBs, and identification documents.
How and When to File:
BOI reports must be filed electronically with FinCEN. Deadlines:
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Existing companies: File by 01/01/2025.
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2024 startups: File within 90 days of formation.
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2025+ startups: File within 30 days of formation.
Let ZenBusiness guide you through the filing process with ease.
Potential Penalties for Non-Compliance:
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 can result in fines of $500 per day, up to $10,000, and potential criminal penalties. A 90-day safe harbor allows corrections without penalties.
Additional Resources:
We want to hear from you! Take our quick survey by December 18, 2024 to share your knowledge about Beneficial Ownership Information (BOI) filing. It only takes a few minutes. Plus for every 25 responses, our Chamber will receive a $100 donation! [Click here to take the survey now!] Thank you for your time and valuable 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.
