Palestine, TX Business Owners: What to Know Now About the CTA, BOI and FinCEN

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 through a company like ZenBusiness will help you avoid fines if this injunction is overruled. Waiting could mean scrambling to meet compliance requirements or penalties. These services provide assistance with user-friendly BOI compliance tools for covering those 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 bakery in Palestine, TX 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 instance, in the context of a small travel agency in Palestine, a managing partner who owns 40% of the company and makes key operational decisions 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 can help SBOs to act now, meeting guidelines in advance by using expert guidance and user-friendly tools.

Additional Resources:

• Completing the Beneficial Ownership Information Form

• A Guide to BOI Compliance

• Corporate Transparency Act Deadlines for 2025

• Details on Preliminary Injunction

• FinCEN FAQ

• BOI Filing for Small Businesses

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Join us in making an impact by completing our BOI survey before December 18, 2024—every 25 responses earn our Chamber 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.