FinCEN: Businesses Must File BOI Reports by 01/01/2025 or Face $500/Day Penalties

The Corporate Transparency Act (CTA) mandates that Easton, Maryland businesses file Beneficial Ownership Information (BOI) reports with FinCEN by January 1, 2025, ensuring compliance with federal laws designed to combat financial crimes.

As of today, November 26, 2024, Easton business owners have 36 calendar days (or 26 business days) left to file their BOI reports with FinCEN—delay could lead to penalties of $500 per day.

Action Steps for Easton Businesses

1. Confirm Filing Requirements

Deadline: ASAP
Businesses classified as "reporting companies" must file, including most LLCs and corporations, unless exempt (e.g., publicly traded companies, banks, and charities).

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 its ownership interests.

ZenBusiness simplifies identifying beneficial owners—get assistance here.

3. Gather Necessary Information

Deadline: December 17, 2024
Required data includes:

• Business details: Name, EIN, address.

• Owner details: Names, addresses, dates of birth, and ID numbers.

4. Submit Your BOI Report

Deadlines depend on formation date:

• Existing companies: File by 01/01/2025.

• New companies (formed in 2024): File within 90 days of formation.

• New companies (formed in 2025 or later): File within 30 days of formation.

ZenBusiness can file your report with ease—click here to get started!

Additional Filing Information

Who Needs to File?

Most LLCs, corporations, and similar entities are required to file, while nonprofits and certain banks are exempt.
Example: A boutique in downtown Easton organized as an LLC must file, but a local nonprofit animal rescue is exempt.

Who Qualifies as a Beneficial Owner?

Beneficial owners are those who:

1. Control significant decisions for the business, OR

2. Own 25% or more of its equity.
   Example: An Easton bakery co-owner with 40% equity is a beneficial owner and must be reported.

What Information Must Be Included?

Reports must detail:

• Business Information: Name, EIN, and address.

• Beneficial Owner Information: Name, address, date of birth, and government ID.

How and When to File

BOI reports must be electronically filed via FinCEN’s portal. Deadlines vary by company creation date:

• Before January 1, 2024: File by 01/01/2025.

• Formed in 2024: File within 90 days of formation.

• Formed in 2025 or later: File within 30 days of formation.

Penalties for Non-Compliance

Failing to file or submitting false information may lead to:

• Fines up to $500 daily, capped at $10,000.

• Imprisonment for willful violations.
  Errors can be corrected during FinCEN’s 90-day safe harbor period.

ZenBusiness: Your BOI Filing Partner

ZenBusiness offers professional assistance for BOI compliance, from identifying beneficial owners to filing your report accurately and on time. Streamline the process with ZenBusiness.

BOI Reporting Resources

• FinCEN BOI FAQ

• ZenBusiness: BOI Filing Services

• Are You Exempt from the Corporate Transparency Act?

• Corporate Transparency Act: Deadlines to Know

• Guide to BOI Compliance

• BOI Filing for Small Business Owners

• How to Complete the Beneficial Ownership Information Form

Caroline County businesses, don’t risk penalties—file your BOI report today and stay compliant!