The CTA, BOI and FinCEN: What Does this Mean for Laguna Beach, CA Businesses?

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, Laguna Beach, CA 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 art gallery in Laguna Beach, CA 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 Laguna Beach, if a co-owner of a local jewelry store owns 40% of the business and makes pivotal decisions regarding inventory and marketing, they are 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.

Learn about how ZenBusiness offers guidance and tools for BOI reporting, making it easier for businesses to comply with FinCEN requirements.

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. As a business owner, you can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness.

Additional Resources:

• Check Out These BOI Filing Services for LLCs

• How-To Guide on Completing the Beneficial Ownership Information Form

• FinCEN FAQ

• Details on Preliminary Injunction

• Know Your State Requirements for Beneficial Ownership Reporting

We want to hear from you!

Your feedback matters! Complete our BOI survey by December 18, 2024. 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.