The CTA, BOI and FinCEN: What Does this Mean for Cushing, OK Businesses?
The Corporate Transparency Act (CTA) required businesses to report Beneficial Ownership Information (BOI) to FinCEN to enhance financial transparency and deter illicit activities.
However, a Texas federal district court’s recent preliminary injunction puts this requirement on hold. What should businesses in Cushing, OK do?
If the Preliminary Injunction is Overturned: Here's 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 Cushing-based oil services firm with a 35% 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.
Use ZenBusiness to simplify and streamline the filing process for you.
Key BOI Filing Details:
Who Needs to File?
"Reporting companies" include most LLCs, corporations, and small businesses in Cushing. Exemptions apply to publicly traded and regulated entities. For example, a Cushing-based trucking company would likely need to file, while a large national logistics firm 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 Cushing-based repair shop with a 40% stake and operational authority 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.
If you choose to file, consider letting ZenBusiness handle your BOI filing to ensure accuracy and stay compliant.
Potential Penalties for Non-Compliance:
While a Texas federal district court’s preliminary injunction recently put 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.
Currently, no specific action is needed from business owners. Waiting to file your BOI could mean scrambling to meet compliance requirements or penalties. Business owners can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness.
Additional Resources:
- FinCEN BOI FAQ
- ZenBusiness State Requirements for BOI Filing
- A Guide to BOI Compliance
- BOI Filing for Small Businesses
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.