FinCEN Requires Encinitas, California Businesses to File BOI Reports by 01/01/2025 or Face Possible Fines
The Corporate Transparency Act (CTA) mandates that businesses in Encinitas, California, report their Beneficial Ownership Information (BOI) to FinCEN by January 1, 2025, aiming to enhance financial transparency and combat crimes like money laundering and tax evasion.
As of today, November 26, 2024, Encinitas business owners have 36 calendar days (or 26 business days) remaining to submit their BOI reports—failure to file on time could result in fines of $500 per day.
Steps for Encinitas Businesses
1. Determine If Your Business Must File
Deadline: ASAP
Most corporations, LLCs, and similar entities need to file, except for exempt entities like banks, nonprofits, and publicly traded companies.
2. Identify Beneficial Owners
Deadline: December 10, 2024
Beneficial owners are individuals who:
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Exercise significant control over the company, OR
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Own at least 25% of the company’s equity.
Get expert help identifying your beneficial owners with ZenBusiness.
3. Gather Necessary Information
Deadline: December 17, 2024
Collect these details for your BOI report:
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Company Information: Name, EIN, address.
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Beneficial Owner Information: Full names, addresses, birth dates, and ID details.
4. File Your BOI Report
Deadlines by company formation date:
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Existing companies (before January 1, 2024): File by 01/01/2025.
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New companies (formed in 2024): File within 90 days of creation.
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Companies formed in 2025 or later: File within 30 days of creation.
Let ZenBusiness simplify your filing process.
Understanding BOI Filing Requirements
Who Must File?
Businesses classified as “reporting companies” must file BOI reports unless exempt. Exemptions include banks, charities, and publicly traded entities.
Example: A yoga studio LLC in Encinitas must file, while a large hospital foundation may qualify for exemption.
Who Is a Beneficial Owner?
Beneficial owners include individuals who:
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Directly influence business decisions, OR
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Own 25% or more of the company’s equity.
Example: A co-owner of an Encinitas organic produce store with 30% ownership qualifies as a beneficial owner.
What Information Is Needed?
BOI reports must include:
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Business details: Legal name, EIN, address.
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Owner details: Names, residential addresses, dates of birth, and government-issued IDs.
How and When to File
BOI reports must be filed electronically through FinCEN's online portal. Filing deadlines depend on company formation dates:
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Existing companies: File by 01/01/2025.
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New companies formed in 2024: File within 90 days.
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Companies formed in 2025 or later: File within 30 days.
Penalties for Non-Compliance
Failure to comply with BOI filing requirements may lead to:
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Daily fines of $500, up to $10,000.
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Criminal penalties, including imprisonment for willful violations.
Mistakes can be corrected within a 90-day safe harbor period without penalties.
Simplify Filing with ZenBusiness
ZenBusiness provides an efficient and stress-free solution for BOI filing, ensuring compliance and accuracy. Their services help you meet deadlines while saving time and avoiding costly errors. Learn more and get started here.
Additional Resources
Act now to avoid penalties and ensure your business remains in good standing.
Your input makes a difference! Take a few minutes to complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. [Take the survey here!] Thank you for supporting our Chamber and sharing your 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.
