The Corporate Transparency Act (CTA) requires most U.S.-based businesses to submit Beneficial Ownership Information (BOI) to FinCEN to combat financial crimes and increase transparency.
As of today, November 27, 2024, business owners in Sioux Falls, South Dakota, have 35 calendar days (or 25 business days) left to file their BOI reports with FinCEN. Don’t risk fines of $500 per day—act now!
Action Steps for Sioux Falls Business Owners:
1. Confirm if your business needs to file.
Most LLCs, corporations, and similar entities must file unless exempt (e.g., banks, nonprofits, or public companies).
2. Identify your beneficial owners.
A beneficial owner is anyone who owns 25% or more of the company or exercises significant control. Services like ZenBusiness can make this step hassle-free.
3. Collect required details.
Gather information such as names, addresses, birthdates, and government-issued ID documents for each beneficial owner.
4. File your BOI report electronically.
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Existing companies (pre-2024): Deadline is 01/01/2025.
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New companies (formed in 2024): File within 90 days of formation.
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New companies (formed in 2025+): File within 30 days of formation.
Learn more about how ZenBusiness can simplify your BOI filing.
Key Details for Sioux Falls Businesses:
Who Needs to File?
A "reporting company" includes most small businesses, such as LLCs or corporations, formed in the U.S. Certain types of businesses—like publicly traded companies, banks, and charities—are exempt. For example, a Sioux Falls family-owned café would likely need to file, but a nonprofit providing community support services would not.
Who is a Beneficial Owner?
A beneficial owner is someone who:
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Holds significant control over the company, OR
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Owns at least 25% of the business.
For instance, if three friends co-own a local bakery in Sioux Falls, with two partners holding 40% each and the third holding 20%, only the two majority owners are considered beneficial owners.
What Information is Required?
Businesses must provide:
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Company information: Name, address, and EIN.
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Beneficial owner details: Names, dates of birth, addresses, and government-issued IDs (e.g., passports or driver’s licenses).
This information ensures accurate reporting and compliance.
How and When to File?
BOI reports must be submitted electronically through FinCEN’s system. Deadlines are:
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Existing companies (pre-2024): File by 01/01/2025.
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New companies (2024): File within 90 days of registration.
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New companies (2025+): File within 30 days of registration.
Penalties for Missing the Deadline
Failing to file or providing false information can result in:
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Fines of $500 per day, up to $10,000.
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Possible imprisonment for willful violations.
A 90-day safe harbor allows you to correct unintentional errors without penalty.
Why Choose ZenBusiness?
ZenBusiness specializes in helping businesses comply with BOI filing requirements. They provide:
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Expert assistance to identify beneficial owners.
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Streamlined filing processes that save time and reduce stress.
Start your BOI filing with ZenBusiness today.
Additional BOI Resources:
Prepare now—don’t wait until the last minute to comply with the January 1, 2025 deadline!
Take our quick BOI survey by December 18, 2024 and support our Chamber! It only takes a few minutes, and for every 25 responses, our Chamber will receive a $100 donation. [Click here to take the survey now!] Thank you for your support!
*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.
