Wauconda, IL SBOs: Responding to the CTA, BOI and FinCEN Changes

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 helps businesses confront BOI concerns quickly thanks to simple guidelines and painless processes. This is ideal for SBOs that want to avoid trouble and tackle the filing process in advance.

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 Wauconda, IL 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. This can include decision-makers, managing partners, or co-owners with significant stakes. For example, in Wauconda, the owner of a pet grooming salon who oversees the daily operations and owns 50% of the business 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.

ZenBusiness provides SBOs with easy tips and tools tailored for BOI compliance, thus an opportunity to stay ahead of further measures and avoid penalties. This type of service also makes reporting your company’s information quick and manageable.

Additional Resources:

• Corporate Transparency Act Deadlines for 2025

• FinCEN FAQ

• Details on Preliminary Injunction

• Corporate Transparency Act

• State Requirements for Beneficial Ownership Reporting

We want to hear from you!

Your feedback is invaluable! Please complete our BOI survey by December 18, 2024, and remember, for every 25 responses, our Chamber will receive a $100 donation! Participate in the survey here! 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.