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The CTA, BOI and FinCEN: What Does this Mean for Sebastopol, CA Businesses?

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The Corporate Transparency Act may require U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.

As of today, 12/05/2024, Sebastopol, CA 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 coffee shop in Sebastopol, CA 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 example, in Sebastopol, the owner of a local wine shop who holds a 40% ownership stake and makes strategic business 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 offers guidance and tools for small business owners reporting BOI in California, simplifying the process to help businesses comply with FinCEN requirements.

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 could 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.

Waiting could mean scrambling to meet California BOI compliance requirements or facing penalties. Business owners can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness.

Additional Resources:

We want to hear from you!

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! We value your input!

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.

 

The CTA, BOI and FinCEN: What Does th...