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

The Corporate Transparency Act may require certain U.S. companies to disclose Beneficial Ownership Information to combat financial crimes.

As of today, 12/05/2024, Brawley, 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 restaurant in Brawley, 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 the context of a shoe repair shop in Brawley, a partner who owns 40% of the business and decides on major repair techniques and supplier contracts 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.

Check out ZenBusiness’s streamlined approach to BOI reporting, providing businesses with accurate guidance to ensure compliance 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.

Waiting could mean scrambling to meet compliance requirements or facing penalties. Business owners in the state of California can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness.

Additional Resources:

• Learn About BOI Filing Services for LLCs in California

• Details on Preliminary Injunction

• FinCEN’s Compliance Guidelines

• A Guide to California BOI Compliance

• FinCEN FAQ

• BOI Filing for Small Businesses in California

We want to hear from you!

Your feedback matters! Please fill out our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey now! We appreciate 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.