The CTA, BOI and FinCEN: What Does this Mean for Pinellas Park, FL Businesses?

The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN, aiming to curb 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.

Read more for details on how this may impact your business in the future.

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 Pinellas Park, FL 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 instance, in Pinellas Park, the owner of a locksmith business who holds a 40% stake and makes strategic decisions about business operations is 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.

ZenBusiness offers a streamlined approach to BOI reporting, providing businesses with clear guidance to ensure compliance with FinCEN requirements. Check out more info here.

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.

No action is needed immediately, but if you decide to move forward, you can avoid hassles by filing with ZenBusiness, which makes BOI reporting straightforward and quick.

Additional Resources:

• FinCEN’s Compliance Guidelines

• Beneficial Ownership Filing

• FinCen Definition

• Beneficial Owner Definition

• Accurately Completing the Beneficial Ownership Information Form

• Details on Preliminary Injunction

• FinCEN FAQ

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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.