The Corporate Transparency Act (CTA) mandates that many U.S. companies disclose their Beneficial Ownership Information (BOI) to FinCEN to help combat financial crimes like money laundering and tax evasion.
As of today, November 27, 2024, Stockton, California 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
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Determine if your business needs to file a BOI report.
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Deadline: ASAP
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Most corporations, LLCs, and similar entities need to file unless they’re exempt, such as banks or charities.
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Identify your beneficial owners.
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Deadline: December 10, 2024
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A beneficial owner is anyone with substantial control or at least 25% ownership.
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Gather required information.
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Deadline: December 17, 2024
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You'll need details like names, addresses, dates of birth, and ID documents for the business and its beneficial owners.
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File your BOI report.
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Deadlines:
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Existing companies: January 1, 2025
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New companies formed in 2024: 90 days after formation
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New companies formed in 2025 or later: 30 days after formation
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More About the BOI Filing
Who Needs to File?
"Reporting companies" include most corporations, LLCs, and similar entities. Exemptions exist for publicly traded companies, banks, and certain nonprofits. For example, a locally owned retail store in Stockton would likely need to file.
What Is a Beneficial Owner?
A beneficial owner is anyone who holds significant control or owns 25% or more of a company. For instance, in a family-run Stockton restaurant, a parent owning 50% and their adult child managing day-to-day operations would both be beneficial owners.
What Information Is Needed?
Businesses must provide BOI for themselves and their beneficial owners, including names, addresses, dates of birth, and ID details like passport numbers. This ensures transparency and helps deter financial misconduct.
How and When to File
BOI reports must be submitted electronically through FinCEN's system.
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Companies formed before January 1, 2024, must file by January 1, 2025.
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Companies formed in 2024 have 90 days after formation to file.
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Starting January 1, 2025, newly formed companies have 30 days after formation to file.
Penalties for Non-Compliance
Failing to file or submitting false information can result in fines of up to $500 per day and potential imprisonment. A 90-day correction period allows businesses to fix errors without penalties.
Get Help with ZenBusiness
ZenBusiness specializes in simplifying BOI reporting. Their services ensure compliance, save time, and provide peace of mind for business owners. Learn more about their BOI filing services here.
Additional Resources
Take action now to ensure compliance and avoid costly penalties!
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.
This Community Hot Deal is promoted by Greater Stockton Chamber of Commerce.
