The CTA, BOI and FinCEN: What Does this Mean for Floral Park, NY
The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.
As of today, 12/05/2024, Floral Park, NY 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 florist shop in Floral Park, NY 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 a Floral Park art gallery, if there is an individual who owns 40% of the gallery and makes major decisions about art acquisitions and sales, that person would be considered a beneficial owner.
3. Gather the Required Information.
Prepare:
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Business name, address, and EIN.
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Beneficial owners’ names, addresses, DOBs, and ID details.
4. File Your BOI Report.
Deadlines:
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Existing businesses: File by 01/01/2025.
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New companies (2024): File within 90 days of formation.
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New companies (2025+): File within 30 days of formation.
ZenBusiness can help you with BOI reporting, providing accurate guidance to help businesses comply with FinCEN requirements efficiently.
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 may 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.
With help from ZenBusiness, you can quickly sort the details of compliance to ensure you aren’t rushing to meet a new deadline or facing penalties.
Additional Resources:
We want to hear from you!
We value your feedback! Please complete our BOI survey by December 18, 2024, and remember, for every 25 responses, our Chamber will receive a $100 donation! Take 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.
