FinCEN Alert: Craig, CO Businesses Must Submit BOI Reports by 01/01/2025
The Corporate Transparency Act mandates U.S. companies to disclose their key owners’ details to combat financial crimes.
As of this day, 12/04/2024, Craig, CO business owners have 27 calendar days (or 20 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN—don’t wait, or you could face fines of $500 per day!
1. Determine if Your Business Must File.
Most LLCs, corporations, and small businesses qualify as “reporting companies.” Exemptions apply to publicly traded companies and certain regulated entities.
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. As an example, in Craig, a co-owner of a local hardware store who owns 40% of the business and is actively involved in strategic decision-making 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 guidance and tools to simplify the process of filing BOI reports, ensuring businesses comply accurately with FinCEN’s requirements.
Who Needs to 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 instance, a local restaurant in Craig, CO would likely need to file a BOI report.
What Is a Beneficial Owner?
A beneficial owner is someone who:
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Holds substantial control over the company, OR
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Owns 25% or more of it.
In Craig, for instance, a managing partner of a local coffee shop who owns 35% of the business and oversees daily operations qualifies as a beneficial owner.
What Information Is Needed?
You’ll need:
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Business name, address, EIN.
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Owners’ names, addresses, DOBs, and identification documents.
How and When to File:
BOI reports must be submitted electronically with FinCEN. Deadlines:
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Existing companies: File by 01/01/2025.
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2024 startups: File within 90 days of formation.
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2025+ startups: File within 30 days of formation.
ZenBusiness offers comprehensive BOI filing services that simplify the compliance process, ensuring small business owners meet FinCEN requirements without the stress of navigating complex regulations.
Penalties for Non-Compliance:
Failure to file can result in fines of $500 per day, up to $10,000, and potential criminal penalties. FinCEN offers a 90-day safe harbor for corrections without penalties.
Additional Resources:
We want to hear from you!
Your feedback matters! Please complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey now! 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.
