The Corporate Transparency Act (CTA) requires businesses to report Beneficial Ownership Information (BOI) to FinCEN to enhance financial transparency and combat financial crimes.
As of today, November 27, 2024, Madison, Wisconsin, business owners have 35 calendar days (or 25 business days) left to file their BOI report with FinCEN—don’t delay, or you could face $500 per day fines!
What You Need to Do:
1. Determine if Your Business Must File.
Most LLCs, corporations, and small businesses qualify as "reporting companies." Exemptions apply to publicly traded companies and certain regulated entities.
2. Identify Your Beneficial Owners.
Beneficial owners are individuals with substantial control or 25% or more ownership of your business. For example, the owner of a Madison-based technology consultancy with a 30% stake 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.
Take a look at how ZenBusiness can assist with your BOI filing to ensure compliance and save time.
Key BOI Filing Details:
Who Needs to File?
"Reporting companies" include most LLCs, corporations, and small businesses in Madison. Exemptions apply to publicly traded and regulated entities. For example, a Madison-based artisanal chocolate maker would need to file, while a national candy chain would not.
What Is a Beneficial Owner?
A beneficial owner is someone who:
-
Holds substantial control over the company, OR
-
Owns 25% or more of it.
For instance, a co-owner of a Madison-based boutique marketing firm with a 40% stake qualifies as a beneficial owner.
What Information Is Needed?
You’ll need:
-
Business name, address, EIN.
-
Owners’ names, addresses, DOBs, and identification documents.
How and When to File:
BOI reports must be submitted electronically with FinCEN. Deadlines:
-
Existing companies: File by 01/01/2025.
-
2024 startups: File within 90 days of formation.
-
2025+ startups: File within 30 days of formation.
Let ZenBusiness simplify BOI filing and ensure BOI compliance is stress-free for your business.
Penalties for Non-Compliance:
Failure to file can result in fines of $500 per day, up to $10,000, and potential criminal penalties. FinCEN provides a 90-day safe harbor for corrections without penalties.
Additional Resources:
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.
This Hot Deal is promoted by Fitchburg Chamber Visitor & Business Bureau.
