FinCEN's BOI Reporting Deadline: Annapolis, MD Businesses Must File by 01/01/2025 to Avoid Penalties

The Corporate Transparency Act (CTA) requires many businesses to submit Beneficial Ownership Information (BOI) to FinCEN, aiming to increase transparency and prevent financial crimes like tax evasion and money laundering.

As of today, 11-26-2024, Annapolis, MD business owners have 36 calendar days (or 27 business days) left to file their BOI reports with FinCEN—failure to comply could result in fines of $500 per day.

Steps to Compliance

1. Determine If Your Business Must File

Deadline: ASAP
Most LLCs, corporations, and similar entities are required to file unless exempt. Exemptions include banks, publicly traded companies, and nonprofits.

2. Identify Your Beneficial Owners

Deadline: 12-10-2024
A beneficial owner is defined as anyone who holds substantial control or owns 25% or more of the company.

3. Gather Required Information

Deadline: 12-17-2024
Collect the following details:

• Business name, address, and formation information

• Beneficial owners' names, birth dates, addresses, and identification

4. File Your BOI Report

Deadlines:

• Existing businesses (formed before 01/01/2024): File by 01/01/2025.

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

• Businesses formed after 01/01/2025: File within 30 days of formation.

ZenBusiness can guide you through the process and simplify your filing.

More About BOI Reporting

Who Needs to File?

"Reporting companies" include most LLCs and corporations. For example, a family-owned catering business in Annapolis would likely need to file unless it qualifies for an exemption, such as being a nonprofit or a publicly traded company.

What is a Beneficial Owner?

Beneficial owners are individuals who either:

1. Have substantial control over the business (e.g., major decision-making authority), or

2. Own 25% or more of the company.
   For instance, in a local Annapolis coffee shop, a partner who owns 30% equity and the manager with full operational authority would both qualify as beneficial owners.

What Information is Needed?

BOI reports require:

• Business details: Name, address, and formation date

• Owner details: Full names, birth dates, current addresses, and a valid identification document (e.g., driver’s license or passport)
  Both company and owner information must be accurate and updated to meet compliance standards.

How and When to File

Reports must be submitted electronically through FinCEN’s online portal. Filing deadlines depend on when the business was established:

• Companies formed before 01/01/2024 must file by 01/01/2025.

• Companies formed in 2024 must file within 90 days.

• Companies formed after 01/01/2025 must file within 30 days.

Penalties for Non-Compliance

Failure to file or providing false information can result in penalties of up to $500 per day and possible imprisonment. However, businesses have a 90-day safe harbor to correct any errors.

ZenBusiness: Your Filing Partner

ZenBusiness simplifies the BOI filing process, ensuring accuracy and compliance with FinCEN requirements. Their services save time and reduce stress for business owners. Start your filing today.

Additional Resources

• FinCEN BOI FAQ

• FinCEN Beneficial Ownership Guide

• ZenBusiness BOI Filing Services

Act now to meet the deadline and avoid penalties—file your BOI report today!