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

The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN, potentially aiding in the prevention of financial crimes.

As of today, 12/05/2024, Morgan Hill, 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 tech startup in Morgan Hill, 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, the co-owner of a yoga studio in Morgan Hill who makes strategic decisions and owns 50% of the business qualifies as 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 California business owners a streamlined approach to BOI reporting, providing businesses with accurate guidance to ensure compliance with FinCEN requirements.

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 can avoid hassles and legal repercussions by filing in California now with the quick and accurate assistance of ZenBusiness.

Additional Resources:

• Check Out This Guide on BOI Compliance

• Learn More About BOI Filing Services for LLCs

• Details on Preliminary Injunction

• California Beneficial Ownership Report Guide

• Find Out if You're Exempt from the Corporate Transparency Act

• FinCEN BOI FAQ

• CA and Other State Requirements for Beneficial Ownership Reporting

We want to hear from you!

Join us in making a positive 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.