Changes Surrounding the CTA, BOI and FinCEN: Tips and Solutions for Christiansburg, VA Businesses

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 offers complete and user-friendly BOI compliance tools for meeting the regulations 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 restaurant in Christiansburg, VA 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 a Christiansburg bubble tea shop, an individual who owns 40% of the business and actively participates in major business decisions qualifies as 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 guidance and support for BOI reporting, making it easier for companies to comply 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.

Additional Resources:

• Corporate Transparency Act

• Beneficial Owner Definition

• A Guide to BOI Compliance

• Who’s Exempt from the Corporate Transparency Act?

• State Requirements for Beneficial Ownership Reporting

• Completing the Beneficial Ownership Information Form

• Details on Preliminary Injunction

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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.