The CTA, BOI and FinCEN: What Does this Mean for Cleburne, TX
The Corporate Transparency Act (CTA) requires businesses in Cleburne, TX, to report their Beneficial Ownership Information (BOI) to FinCEN, ensuring greater transparency and reducing financial crimes.
As of today, 11-26-2024, businesses in Cleburne have 36 calendar days (or 27 business days) left to file their BOI reports with FinCEN—act now to sidestep fines of up to $500 per day!
Key Steps for Compliance
1. Check If Your Business Needs to File
Deadline: ASAP
Most corporations, LLCs, and similar entities must file, excluding banks, charities, and publicly traded companies.
2. Identify Your Beneficial Owners
Deadline: 12-10-2024
Beneficial owners include individuals who:
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Own 25% or more of the company, or
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Exercise substantial control over its operations.
3. Collect the Necessary Information
Deadline: 12-17-2024
Prepare these details:
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Company: Legal name, EIN, principal address.
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Beneficial owners: Full names, residential addresses, dates of birth, and ID document information.
4. File Your BOI Report
Deadlines:
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Existing companies: 01/01/2025
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New companies (formed in 2024): File within 90 days of creation.
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New companies (2025 onward): File within 30 days of creation.
ZenBusiness can streamline the process—click here to get started.
Understanding BOI Filing
Who Needs to File?
Most Cleburne businesses, like small family-owned shops or local LLCs, must file unless exempt. Exemptions include nonprofits and publicly traded entities.
What Is a Beneficial Owner?
A beneficial owner is someone who significantly influences or owns at least 25% of a business. For example, in a local bakery with two equal partners, both are beneficial owners.
What Information Is Required?
Businesses must provide details about both the company and its beneficial owners, including:
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Legal names and addresses.
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Identification document details.
How and When to File
File electronically through FinCEN’s online system. Deadlines vary depending on the company's formation date:
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Existing companies (before 01/01/2024): 01/01/2025.
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New companies (2024): Within 90 days of formation.
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New companies (2025+): Within 30 days of formation.
Penalties for Non-Compliance
Failing to file can result in fines up to $500 per day and even imprisonment. However, FinCEN offers a 90-day safe harbor for correcting errors.
Simplify Compliance with ZenBusiness
ZenBusiness offers expert assistance with BOI reporting, ensuring accuracy and peace of mind. Save time and avoid penalties by using their streamlined services. Learn more today.
Additional Resources
We want to hear from you! Take our quick survey by December 18, 2024 to share your knowledge about Beneficial Ownership Information (BOI) filing. It only takes a few minutes. Plus for every 25 responses, our Chamber will receive a $100 donation! [Click here to take the survey now!] Thank you for your time and valuable feedback.
*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.
