FinCEN Urges Excelsior, MN Businesses to File BOI Reports by 01/01/2025 to Avoid Possible Daily Penalties
The Corporate Transparency Act (CTA) mandates businesses in Excelsior, MN, to submit Beneficial Ownership Information (BOI) to FinCEN by January 1, 2025, a crucial step in enhancing financial transparency and preventing financial crimes.
As of today, November 26, 2024, Excelsior business owners have 36 calendar days (or 26 business days) remaining to meet the filing deadline. Non-compliance may lead to fines of $500 per day, making timely action essential.
Steps to Ensure Compliance for Excelsior Businesses
1. Confirm if Your Business Must File
Deadline: ASAP
Most corporations, LLCs, and similar entities are required to file, excluding specific exempt entities such as banks, publicly traded companies, and nonprofits.
2. Identify Beneficial Owners
Deadline: December 10, 2024
A beneficial owner is anyone who:
Has substantial control over the company, OR
Owns 25% or more of the company’s equity.
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3. Collect Required Information
Deadline: December 17, 2024
Gather these key details for filing:
Business Information: Legal name, EIN, physical address.
Beneficial Owner Information: Full names, residential addresses, dates of birth, and government-issued ID details.
4. Submit Your BOI Report
Deadlines vary by company formation date:
Existing companies: File by 01/01/2025.
Companies formed in 2024: File within 90 days of formation.
Companies formed in 2025 or later: File within 30 days of formation.
Learn how ZenBusiness can assist with seamless BOI filing.
Details About BOI Filing
Who Needs to File?
All “reporting companies” must file unless exempt, including most corporations and LLCs. For example, a boutique flower shop in Excelsior operating as an LLC is likely required to submit BOI.
Who Is a Beneficial Owner?
Beneficial owners include individuals who:
Hold substantial control, or
Own 25% or more of the company’s equity.
For example, a co-owner of an Excelsior bakery with 30% ownership qualifies as a beneficial owner.
What Information Is Required?
Reports must contain:
Business information: Legal name, EIN, and physical address.
Beneficial owner information: Names, addresses, dates of birth, and ID details.
Filing Deadlines
Reports are filed electronically via FinCEN’s online portal. Filing deadlines depend on formation date:
Existing companies: File by 01/01/2025.
New companies (2024): File within 90 days of creation.
New companies (2025 or later): File within 30 days of creation.
Penalties for Missing the Deadline
Failure to comply can result in:
Daily fines of $500, up to $10,000.
Criminal penalties, including imprisonment for intentional violations.
Errors may be corrected within a 90-day safe harbor period without penalty.
ZenBusiness Simplifies BOI Filing
ZenBusiness offers expert guidance and tools to ensure businesses comply with BOI filing requirements. Their services streamline the process, save time, and reduce the risk of costly mistakes. Get started with ZenBusiness today.
Additional Resources
Ensure your business remains compliant—file your BOI report before the January 1, 2025 deadline!
We want to hear from you! Take our quick survey by December 18, 2024 to share your knowledge about Beneficial Ownership Information (BOI) filing. It only takes a few minutes. Plus for every 25 responses, our Chamber will receive a $100 donation! [Click here to take the survey now!] Thank you for your time and valuable feedback.
*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.