Help for Richardson, TX Business Owners Confused about CTA, BOI and FinCEN

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. ZenBusiness provides help with user-friendly BOI compliance tools for covering their obligations now.

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 tech startup in Richardson, TX would likely need to file a BOI report.

2. Identify Your Beneficial Owners.

A ‘beneficial owner’ is someone who has substantial control over a company or owns at least 25% of it. For example, in Richardson, a co-owner of a bubble tea shop who is responsible for major business decisions and owns 40% of the shop would be 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.

The services of ZenBusiness allow SBOs to act now, meeting guidelines in advance by using expert guidance and simple tools.

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 could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties. FinCEN provides a 90-day safe harbor period for corrections without penalties.

Additional Resources:

• FinCEN FAQ

• Corporate Transparency Act

• Who’s Exempt from the Corporate Transparency Act?

• FinCEN’s Compliance Guidelines

• Beneficial Owner Definition

• Details on Preliminary Injunction

• FinCEN BOI Filing Services

• FinCen Definition

We want to hear from you!

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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.