The Corporate Transparency Act (CTA) requires Columbia businesses to submit Beneficial Ownership Information (BOI) to FinCEN to improve financial transparency and combat financial crimes like money laundering and tax evasion.
As of today, 11-26-2024, Columbia, MD business owners have 36 calendar days (or 27 business days) to file their BOI reports with FinCEN—don’t delay or risk fines of $500 per day!
Action Steps for Columbia Businesses
1. Verify Filing Requirements
Deadline: ASAP
Determine if your business qualifies as a "reporting company." Most LLCs, corporations, and partnerships must file unless exempt (e.g., publicly traded companies or banks).
2. Identify Beneficial Owners
Deadline: 12-10-2024
Beneficial owners are individuals who:
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Control 25% or more of the business, or
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Hold substantial decision-making authority.
3. Collect Required Information
Deadline: 12-17-2024
Prepare these details:
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Full names, addresses, and birthdates of beneficial owners
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Valid government-issued identification
4. File the BOI Report
Deadlines:
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Existing companies (formed before 01/01/2024): File by 01/01/2025.
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New companies (formed in 2024): File within 90 days of formation.
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Companies formed after 01/01/2025: File within 30 days.
Streamline the process with ZenBusiness—get started here.
Details About BOI Filing
Who Needs to File?
Most small businesses in Columbia, MD, including local restaurants and boutiques structured as LLCs or corporations, need to file. Exemptions apply to nonprofits and banks. For instance, a new fitness studio LLC in Columbia would need to submit BOI, but a local credit union would be exempt.
What Is a Beneficial Owner?
Beneficial owners are individuals who either:
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Own 25% or more of the business
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Have significant decision-making authority
For example, in a Columbia-based tech consultancy, the founder who owns 30% of shares and directs operations would qualify as a beneficial owner.
What Information Is Required?
Businesses must report:
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Company details, such as name, address, and EIN
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Beneficial owner information, including names, addresses, birthdates, and ID documentation
How and When to File
Reports must be submitted electronically through FinCEN’s platform. Deadlines depend on when the business was formed:
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Before 01/01/2024: File by 01/01/2025.
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During 2024: File within 90 days of registration.
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After 01/01/2025: File within 30 days.
Penalties for Non-Compliance
Businesses failing to comply face fines of $500 per day or criminal charges. However, FinCEN allows a 90-day safe harbor for correcting errors.
ZenBusiness: Simplify Your BOI Filing
ZenBusiness ensures accurate and timely BOI filing, saving Columbia business owners time and effort. Let ZenBusiness handle your BOI report today.
Resources for Further Guidance
Ensure your business meets the requirements—file on time 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.
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