At ZenStrategies, we are committed to helping our clients navigate complex regulations with ease. That’s why, on November 7th, we hosted a comprehensive webinar on the Corporate Transparency Act (CTA) and the requirements for Beneficial Ownership Information (BOI) reporting. This new regulation is an important step toward enhancing transparency in business ownership, and it requires certain small businesses to disclose detailed information about their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
For those who were unable to attend the live session, we’ve sent a recording of the webinar along with all the handouts to both attendees and those who were invited but couldn’t join. The webinar materials include clear instructions on how businesses can file their BOI reports themselves for free. Additionally, we provided information on how ZenStrategies can assist in completing the filing for you, ensuring that all requirements are met on time.
What is the Corporate Transparency Act?
The Corporate Transparency Act was enacted to help combat money laundering, terrorist financing, and other illicit financial activities. By requiring businesses to disclose their “beneficial owners,” the Act aims to create a more transparent and accountable business environment.
A beneficial owner is anyone who, directly or indirectly, owns or controls at least 25% of a company or has substantial control over it. These individuals must now be reported to FinCEN, alongside other details about their identities, addresses, and personal identification numbers. This law applies to corporations, limited liability companies (LLCs), and similar entities, although there are certain exemptions for larger or more established companies.
Who Needs to Report?
The CTA requires certain small businesses to report beneficial ownership information to FinCEN, but not all businesses are required to comply. Specifically:
- Reporting Companies: Most smaller, privately held businesses, including corporations, LLCs, and similar entities, must comply with the reporting requirements.
- Exemptions: Some businesses are exempt from the reporting requirements, such as those with more than 20 full-time employees, over $5 million in annual revenue, and a physical presence in the U.S.
If your business qualifies as a “reporting company,” you’ll need to submit detailed information about each beneficial owner to FinCEN. The materials from our webinar include specific instructions on how to identify and report these individuals.
What Information Must Be Reported?
The CTA mandates that businesses report the following details for each beneficial owner:
- Full Legal Name
- Date of Birth
- Current Address
- Identification Number (e.g., driver’s license number or passport number)
This information will be securely stored by FinCEN and made available to law enforcement and other authorized entities to help fight financial crimes.
What Happens if You Don’t Comply?
The penalties for failing to comply with the Corporate Transparency Act are significant. Businesses that fail to report or provide false information may face:
- Civil Penalties: Up to $500 per day for failure to report or update information.
- Criminal Penalties: Up to $10,000 in fines for willfully providing false or misleading information.
These penalties underscore the importance of taking action to ensure that your business remains in compliance with the law.
Filing for Free or with ZenStrategies’ Assistance
We understand that compliance with the Corporate Transparency Act may seem daunting, especially for smaller businesses already juggling numerous responsibilities. To make the process easier, we provided our webinar attendees with detailed instructions on how they can file their BOI reports directly with FinCEN for free. The self-reporting process through FinCEN’s portal is straightforward, and the materials we shared in the webinar will guide you every step of the way.
For those who prefer to have the process handled for them, we are also offering our assistance to ensure the filing is completed accurately and on time. ZenStrategies can take care of the entire process on your behalf, allowing you to focus on running your business. However, to ensure we can meet the January 1st deadline, we need to receive the necessary information by December 1st.
Why December 1st Matters
The December 1st deadline is critical for businesses that wish to have ZenStrategies handle their BOI filing. If we don’t receive the required information by this date, we cannot guarantee that your filing will be completed on time. To avoid penalties and ensure timely submission, we recommend that you submit your information as soon as possible.
How to Submit Your Information
If you would like ZenStrategies to handle your BOI filing, simply reach out to us directly or respond to the email containing the webinar materials. You will need to provide the necessary details, such as the legal names, birthdates, and addresses of all beneficial owners. Make sure we receive this information by December 1st to ensure we can complete the process for you.
Stay Compliant and Confident
Navigating the Corporate Transparency Act doesn’t have to be overwhelming. Whether you choose to handle the filing yourself with the detailed instructions provided, or you prefer to have our team take care of it for you, ZenStrategies is here to support you every step of the way. We’re committed to ensuring that your business remains compliant with the law and is positioned for continued growth.
If you have any questions or need additional assistance, don’t hesitate to reach out to us. We’re here to help you meet the new regulatory requirements with confidence.
