The CTA, BOI and FinCEN: What Does this Mean for Fountain Hills, AZ Businesses?

By fhchamber | December 12, 2024

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. Business owners can avoid hassles and legal repercussions by filing now with the efficient and easy-to-follow assistance of ZenBusiness.

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 coffee shop in Fountain Hills, AZ 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 the HVAC services industry in Fountain Hills, an individual who owns 40% of an HVAC company and makes strategic decisions regarding contracts and operations 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.

If you’re looking for help with BOI reporting, ZenBusiness offers clear information and streamlined tools to help businesses comply with FinCEN regulations efficiently.

Additional Resources:

We want to hear from you!

Join us in making a positive impact! Complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey here! We value your contribution!

ZenBusiness