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FinCEN's BOI Reporting Deadline: Memphis, TN Businesses Should File by 01/01/2025 to Avoid Possible Fines
The Corporate Transparency Act (CTA) mandates that many businesses disclose Beneficial Ownership Information (BOI) to FinCEN to enhance financial transparency and prevent fraud.As of today, 11-27-2024, Memphis, Tennessee, business owners have 35 calendar days (or 25 business days) left to file their BOI reports with FinCEN. Don’t delay—missing the deadline could lead to fines of up to $500 per day!
Steps to File Your BOI Report
1. Confirm if You Need to File.
Most corporations and LLCs must file unless exempt (e.g., banks, large public companies, charities). Act now to determine if your business qualifies.
2. Identify Your Beneficial Owners.
Beneficial owners are individuals who control the company or own at least 25% of it.
3. Collect Required Information.
Compile details like names, addresses, dates of birth, and government ID numbers for all beneficial owners.
4. File Electronically Before the Deadline.
Existing businesses must file by 01/01/2025. Newly formed companies in 2024 must file within 90 days of formation, and starting 2025, new businesses must file within 30 days.
Click here to see how ZenBusiness can simplify BOI reporting.
What You Need to Know
Who Needs to File?
"Reporting companies" include most corporations and LLCs. Exemptions apply to banks, nonprofits, and publicly traded companies. For example, a small Memphis-based landscaping LLC must file, while a local nonprofit is likely exempt.
What Is a Beneficial Owner?
A beneficial owner is someone with significant control over a business or at least 25% ownership. For instance, in a Memphis coffee shop co-owned by two individuals with a 50/50 split, both owners qualify as beneficial owners.
What Information Must Be Reported?
Businesses must provide:
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Their legal name and address.
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Full names, addresses, and dates of birth for beneficial owners.
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Identification documents, such as driver’s licenses or passports.
How and When to File?
BOI reports must be submitted electronically via FinCEN’s online portal.
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Existing companies: File by 01/01/2025.
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New companies in 2024: File within 90 days of formation.
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New companies in 2025 or later: File within 30 days.
Penalties for Non-Compliance
Failing to file or providing false information can result in fines of $500 per day and even imprisonment. FinCEN offers a 90-day safe harbor to correct errors without penalties.
ZenBusiness Makes BOI Filing Easy
ZenBusiness offers tailored assistance with BOI reporting, from identifying beneficial owners to filing reports on time. Their expertise ensures accuracy, saving you time and stress. Learn more here.
Additional Resources
Prepare now to ensure compliance and avoid costly penalties!
Help us and our Chamber by completing a quick BOI survey by December 18, 2024! It only takes a few minutes, and for every 25 responses, our Chamber earns a $100 donation. [Click here to take the survey!] We appreciate your time and participation!
*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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