The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.
As of today, 12/05/2024, Coastal Alabama business owners have 26 calendar days (or 19 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN.
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 restaurant in the Coastal Alabama region 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 a yoga studio in Coastal Alabama, a co-owner who owns 40% of the business and is responsible for major operational and financial decisions is considered a beneficial owner.
3. Gather the Required Information.
Prepare:
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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 offers support and guidance for businesses needing to submit BOI reports through their dedicated filing services, ensuring compliance with FinCEN regulations.
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.
Waiting could mean scrambling to meet compliance requirements or facing penalties. Business owners can avoid hassles and legal repercussions by filing their BOI now with the quick and accurate assistance of ZenBusiness.
Additional Resources:
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State Requirements for Beneficial Ownership Reporting - Alabama
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Corporate Transparency Act: What Alabama Business Owners Should Know
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Who in Alabama Is Exempt from the Corporate Transparency Act?
We want to hear from you!
We value your feedback! Please take a moment to fill out our BOI survey by December 18, 2024, and remember, for every 25 responses, our Chamber will receive a $100 donation! Take the survey here! Thank you for your support!
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.
