The CTA, BOI and FinCEN: What Rockwall, TX Businesses Need to Do Next

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 will help you avoid fines if this injunction is overruled. Waiting could mean scrambling to meet compliance requirements or penalties. ZenBusiness provides assistance with user-friendly BOI compliance tools for covering their 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 Rockwall, TX would likely need to file a BOI report.

2. Identify Your Beneficial Owners.

A ‘beneficial owner’ is someone who has substantial control over a company or owns at least 25% of it. For example, a freelance graphic designer in Rockwall who owns 100% of their business and makes all creative and financial decisions is 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.

The services of ZenBusiness help SBOs to act now, meeting guidelines in advance by using expert guidance and user-friendly tools.

Additional Resources:

• FinCEN BOI FAQ

• A Guide to BOI Compliance

• Details on Preliminary Injunction

• Corporate Transparency Act

• Beneficial Owner Definition

• Completing the Beneficial Ownership Information Form

We want to hear from you!

Join us in making a difference by completing our BOI survey before December 18, 2024—your participation counts, and 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.