FinCEN’s BOI Deadline: Chicago-Naperville-Joliet Businesses Must File by 01/01/2025 or Face $500 Daily Penalties!
The Corporate Transparency Act (CTA) requires many U.S.-based businesses to file Beneficial Ownership Information (BOI) with FinCEN, a move designed to improve financial transparency and combat fraud.
As of today, November 27, 2024, business owners in the Chicago-Naperville-Joliet area have 35 calendar days (or 25 business days) left to submit their BOI reports to FinCEN. Avoid fines of $500 per day—take action now!
Action Plan for Chicago Area Businesses:
1. Verify if your business must file.
Most LLCs, corporations, and similar entities need to comply. However, banks, nonprofits, and publicly traded companies are exempt.
2. Identify your beneficial owners.
A beneficial owner is any individual who owns at least 25% of the business or holds significant control. Simplify this step with ZenBusiness.
3. Gather the necessary information.
Collect names, birthdates, addresses, and government-issued ID details for each beneficial owner.
4. Submit your BOI report electronically.
-
Existing companies (pre-2024): Deadline is 01/01/2025.
-
New companies (2024): File within 90 days of registration.
-
New companies (2025+): File within 30 days of registration.
ZenBusiness can help you complete your filing quickly and accurately.
Key Details About BOI Filing:
Who Needs to File?
"Reporting companies" include most small businesses such as LLCs and corporations. Certain types of businesses, like banks and nonprofits, are exempt. For instance, a Chicago-based IT consultancy operating as an LLC will likely need to file, while a local charity offering educational programs is exempt.
Who is a Beneficial Owner?
A beneficial owner is someone who:
-
Owns 25% or more of the company, OR
-
Has substantial control over company operations.
For example, if three partners own equal shares of a Naperville café, each holding 33%, all three are considered beneficial owners.
What Information is Needed?
Businesses must provide:
-
Company information: Name, address, and EIN.
-
Beneficial owner details: Name, date of birth, residential address, and a government-issued ID.
This ensures transparency and compliance with the CTA.
How and When to File?
All BOI reports must be submitted electronically through FinCEN’s online portal. Deadlines are:
-
Existing businesses (pre-2024): File by 01/01/2025.
-
New businesses (formed in 2024): File within 90 days of formation.
-
New businesses (formed in 2025+): File within 30 days of formation.
Penalties for Missing the Deadline
Failure to comply can lead to:
-
Daily fines of $500, capped at $10,000.
-
Possible imprisonment for willful violations.
FinCEN allows a 90-day safe harbor to correct unintentional errors without penalty.
ZenBusiness Can Help:
ZenBusiness offers expert support for BOI filing, helping:
-
Identify your beneficial owners accurately.
-
Ensure compliance with a hassle-free process.
Get started with ZenBusiness today.
Additional BOI Resources:
Prepare today to meet the January 1, 2025, deadline and avoid costly penalties!
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.
This Hot Deal is promoted by Lansing Area Chamber of Commerce.
