FinCEN Requires Burlington, NC Businesses to File BOI Reports by 01/01/2025—Avoid $500 Daily Fines!
FinCEN Requires Burlington, NC Businesses to File BOI Reports by 01/01/2025—Avoid $500 Daily Fines!
The Corporate Transparency Act (CTA) mandates that U.S. businesses disclose critical information about their beneficial owners to FinCEN, aimed at combating financial crimes like money laundering and tax evasion.
As of today, November 27, 2024, Burlington, North Carolina business owners have 35 calendar days (or 25 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN—don’t delay, or you could incur fines of $500 per day!
Immediate Action Steps for Burlington Businesses:
Step 1: Determine if your business must file.
Most U.S.-registered corporations and LLCs must file unless exempt. Exempt entities include banks, public companies, and charities.
Step 2: Identify your beneficial owners.
A beneficial owner is anyone with substantial control or at least 25% ownership in your business. Use services like ZenBusiness to simplify the process.
Step 3: Gather the required details.
Collect names, addresses, birthdates, and identification documents for each beneficial owner.
Step 4: File your BOI report.
Deadlines depend on your business’s formation date:
Existing companies (pre-2024): File by 01/01/2025.
New companies (2024): File within 90 days of formation.
New companies (2025+): File within 30 days of formation.
Click here to learn how ZenBusiness can help you navigate filing requirements easily and accurately.
More About the BOI Filing Process:
Who Needs to File?
"Reporting companies" are most small businesses, such as LLCs and corporations, formed in the U.S. However, some entities are exempt, including banks, publicly traded companies, and nonprofits. For example, a small Burlington-based landscaping LLC would likely need to file, while a local charity would not.
What is a Beneficial Owner?
A beneficial owner is any individual who:
Exercises significant control over a company.
Owns at least 25% of the business’s equity.
For instance, in a Burlington coffee shop owned 50/50 by two partners, both partners are considered beneficial owners.
What Information is Required?
BOI reports require details about:
The company: Name, address, and EIN.
Beneficial owners: Names, addresses, birthdates, and copies of IDs (e.g., driver’s licenses or passports).
How and When to File?
BOI reports must be filed electronically through FinCEN's online portal. Deadlines vary:
Existing companies (pre-2024): January 1, 2025.
New companies (formed in 2024): Within 90 days of registration.
New companies (formed in 2025 or later): Within 30 days of registration.
Penalties for Non-Compliance
Failing to file or submitting false information can result in:
Fines of $500 per day, up to $10,000.
Potential imprisonment. However, businesses have a 90-day safe harbor to correct unintentional mistakes.
ZenBusiness Can Help!
ZenBusiness offers expert assistance with BOI reporting, ensuring compliance and peace of mind. From identifying beneficial owners to filing your report, their services save you time and reduce stress. Learn more and get started here.
Additional Resources for BOI Filing:
Don’t wait—ensure your business is compliant before the January 1, 2025 deadline!
Help us and our Chamber by completing a quick BOI survey by December 18, 2024! It only takes a few minutes, and for every 25 responses, our Chamber earns a $100 donation. [Click here to take the survey!] We appreciate your time and participation!
*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.