Breaking Down the CTA, BOI and FinCEN for Businesses in The Colony, TX

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 provides help with streamlined BOI compliance tools for SBOs that want to cover their obligations now.

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 The Colony, TX would likely need to file a BOI report.

2. Identify Your Beneficial Owners.

A ‘beneficial owner’ is someone who holds substantial control over a company or possesses at least 25% ownership. For instance, in The Colony, a managing partner of a custom printing service who owns 40% of the business and is responsible for major operational decisions 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 can help SBOs to act now, meeting guidelines in advance by leaning into their expertise and helpful tools and processes.

Additional Resources:

• Completing the Beneficial Ownership Information Form

• Corporate Transparency Act Deadlines for 2025

• FinCEN FAQ

• Who’s Exempt from the Corporate Transparency Act?

• Details on Preliminary Injunction

We want to hear from you!

Join us in making an impact! Complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey here! Your participation is greatly appreciated!

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.