FinCEN’s BOI Deadline: Houston-Sugar Land-Baytown Businesses Must File by 01/01/2025 or Risk $500 Daily Fines!
The Corporate Transparency Act (CTA) mandates most U.S.-registered businesses to report critical Beneficial Ownership Information (BOI) to FinCEN, aiming to curb financial crimes like money laundering and tax evasion.
As of today, November 27, 2024, business owners in Houston-Sugar Land-Baytown, Texas, have 35 calendar days (or 25 business days) left to submit their BOI reports to FinCEN—don’t delay, or face fines of up to $500 per day!
Action Plan for Houston Businesses:
1. Determine if your business must file.
If you’re a U.S.-registered LLC, corporation, or similar entity, you likely need to file—unless you’re exempt (e.g., banks, nonprofits, or publicly traded companies).
2. Identify your beneficial owners.
Beneficial owners include individuals who control or own at least 25% of your business. Services like ZenBusiness can guide you through this step.
3. Gather necessary information.
Collect details like names, birthdates, addresses, and government-issued IDs for each beneficial owner.
4. Submit your BOI report.
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Existing companies (formed pre-2024): Deadline is 01/01/2025.
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New companies (formed in 2024): File within 90 days of registration.
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New companies (formed in 2025+): File within 30 days of registration.
ZenBusiness can assist you with filing efficiently and accurately.
BOI Filing Essentials for Houston Businesses:
Who Needs to File?
Most corporations and LLCs in the U.S. are "reporting companies" under the CTA. However, banks, charities, and public companies are exempt. For instance, a family-run construction firm in Sugar Land would likely need to file, while a local nonprofit food pantry would not.
Who is a Beneficial Owner?
A beneficial owner is anyone who:
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Exercises significant control over the company, OR
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Owns 25% or more of the company.
For example, in a Houston-based tech startup owned equally by three partners, each with 33% ownership, all three partners are beneficial owners under CTA rules.
What Information is Required?
You’ll need to report:
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Company details: Name, address, and EIN.
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Beneficial owner details: Name, date of birth, address, and government-issued ID (e.g., driver’s license or passport).
This data ensures accountability and transparency.
How and When to File?
All BOI reports must be submitted electronically via FinCEN’s online system. Deadlines depend on your company’s formation date:
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Existing companies (formed pre-2024): File by 01/01/2025.
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New companies (formed in 2024): File within 90 days of formation.
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New companies (formed in 2025+): File within 30 days of formation.
Penalties for Non-Compliance
Failure to comply can result in severe penalties:
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Fines of $500 per day, capped at $10,000.
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Potential imprisonment for willful violations.
However, a 90-day safe harbor allows businesses to correct unintentional mistakes without penalty.
Why Use ZenBusiness?
ZenBusiness offers expert guidance in identifying beneficial owners and completing BOI filings accurately and efficiently. Their services save time, ensure compliance, and reduce stress for busy business owners. Get started with ZenBusiness today.
Additional Resources for BOI Compliance:
Prepare now and avoid last-minute stress—file your BOI report before the January 1, 2025 deadline!
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.
