The CTA, BOI and FinCEN: Clarifying the Details for Gallatin, TN 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. Business owners can skip the hassles and legal repercussions by filing now with the quick and accurate help 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 Gallatin, TN 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 Gallatin, if a locksmith owns 40% of the locksmith business and is actively involved in making strategic decisions, they 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.

ZenBusiness offers quick, easy to understand instructions for BOI reporting, providing businesses with the necessary guidance to ensure compliance with FinCEN regulations.

Additional Resources:

• BOI Filing for Small Businesses

• Details on Preliminary Injunction

• FinCEN FAQ

• State Requirements for Beneficial Ownership Reporting

• Completing the Beneficial Ownership Information Form

• Corporate Transparency Act

• BOI Filing Services for LLCs

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