Friendly Reminder: FinCEN BOI Submission Due by 01/01/2025 for Federal Way, WA Businesses

The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.

As of today, 12/05/2024, Federal Way, WA business owners have 26 calendar days (or 19 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN.

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 coffee shop in Federal Way, WA 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. An example would be a managing partner of a wine shop in Federal Way who holds 40% ownership and is actively involved in the decision-making process of the business.

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.

ZenBusiness offers a straightforward approach to BOI reporting, providing businesses with accurate guidance to ensure compliance with FinCEN regulations.

Penalties for Non-Compliance:

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 may lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties. FinCEN provides a 90-day safe harbor period for corrections without penalties.

BOI compliance is uncomplicated through ZenBusiness, allowing business owners to avoid penalties or attempting to complete reporting under the gun. 

Additional Resources:

• Corporate Transparency Act

• FinCEN BOI FAQ

• FinCEN FAQ

• FinCEN’s Compliance Guidelines

• Corporate Transparency Act Deadlines for 2025

• Details on Preliminary Injunction

• BOI Filing for Small Businesses

We want to hear from you!

We need your help! 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.