FinCEN Requires Alexandria, VA Businesses to File BOI Reports by 01/01/2025 or Face Fines!
The Corporate Transparency Act (CTA) requires businesses to disclose Beneficial Ownership Information (BOI) to FinCEN to combat financial crimes like money laundering and tax evasion.
As of today, 11-26-2024, Alexandria, VA business owners have 36 calendar days (or 27 business days) left to file their BOI reports with FinCEN. Don't delay—non-compliance could lead to fines of $500 per day!
Key Steps for Compliance
1. Determine If Your Business Needs to File a BOI Report
Deadline: ASAP
Most LLCs, corporations, and similar entities need to file. Exemptions include banks, publicly traded companies, and charities.
2. Identify Your Beneficial Owners
Deadline: 12-10-2024
A beneficial owner is anyone with substantial control over the company or who owns 25% or more of it.
3. Gather the Required Information
Deadline: 12-17-2024
You’ll need:
Business name and address
Beneficial owners' names, dates of birth, addresses, and ID document information
4. File Your BOI Report
Deadlines:
Understanding BOI Filing
Who Needs to File?
A "reporting company" includes most small businesses like LLCs and corporations. For example, an Alexandria-based graphic design LLC with multiple owners must file. Businesses such as banks, charities, and public companies are exempt.
What is a Beneficial Owner?
Beneficial owners are individuals who either:
Hold substantial control over the business (e.g., making key decisions), or
Own 25% or more of its equity.
For instance, in a locally-owned café in Alexandria, if one partner manages operations while another owns 30% equity, both qualify as beneficial owners.
What Information is Needed?
Reports must include information about both the business and its beneficial owners:
Business name, address, and formation details
Owners' names, dates of birth, addresses, and a copy of a valid ID document
How and When to File
Reports must be submitted electronically through FinCEN’s online portal. Filing deadlines vary:
Companies formed before 01/01/2024 must file by 01/01/2025.
Companies formed in 2024 must file within 90 days of formation.
Starting in 2025, companies have 30 days to file after formation.
Penalties for Non-Compliance
Failing to file or providing false information can lead to penalties, including fines up to $500 per day or imprisonment. A 90-day safe harbor period allows for correcting errors.
How ZenBusiness Can Help
ZenBusiness offers an efficient way to handle your BOI filing, ensuring accuracy and saving time. Their expertise simplifies the process, providing peace of mind for business owners. Learn more here.
Additional Resources
Take action today to meet the deadline and avoid costly penalties!