The CTA, BOI and FinCEN: Shifts Businesses in Laredo, TX Must Know

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 offers professional BOI compliance tools and simple directions for those interested in addressing these worries now, guaranteeing timely completion with easy accuracy.

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 restaurant in Laredo, TX 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 Laredo, the owner of a pet grooming salon who makes key operational decisions and owns 40% of the business 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.

Business owners can stay on top of compliance by filing now through ZenBusiness, whose simple-to-use guidance and tools make meeting the FinCEN regulations easy.

Additional Resources:

• BOI Filing Services for LLCs

• Who’s Exempt from the Corporate Transparency Act?

• State Requirements for Beneficial Ownership Reporting

• FinCEN’s Compliance Guidelines

• Details on Preliminary Injunction

• Beneficial Ownership Report Guide

• Completing the Beneficial Ownership Information Form

We want to hear from you!

We value your feedback! Please complete our BOI survey by December 18, 2024, 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.