The CTA, BOI and FinCEN: What Does this Mean for Businesses in Broomfield, CO?

The Corporate Transparency Act (CTA) mandates that businesses in Broomfield, CO, report Beneficial Ownership Information (BOI) to FinCEN to enhance transparency and combat financial crimes.

While a Texas federal district court’s preliminary injunction puts this requirement on hold, many experts expect that to be overturned. In that event, failure to file could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties.

Key Steps for Broomfield Business Owners

1. Confirm Your Filing Obligation

Businesses required to file include most LLCs, corporations, and similar entities, with exemptions for banks, publicly traded companies, and nonprofits.

2. Identify Beneficial Owners

Beneficial owners include individuals who:

• Own 25% or more of the company, or

• Have substantial control over business operations.

3. Prepare Required Information

Gather details for both the company and its beneficial owners, including:

• Company: Name, EIN, address.

• Owners: Names, birthdates, residential addresses, and ID information.

4. Submit Your BOI Report

Deadlines:

• Existing businesses: File by January 1, 2025.

• New businesses formed in 2024: File within 90 days of creation.

• New businesses formed in 2025 or later: File within 30 days of creation.

Learn how ZenBusiness can assist with a simple, stress-free filing process here.

What Broomfield Businesses Should Know

Who Must File?

Most small businesses, such as a Broomfield-based consulting firm or café, fall under the reporting requirements. Exempt entities include nonprofits, large publicly traded companies, and certain financial institutions.

What Defines a Beneficial Owner?

A beneficial owner is anyone who:

1. Owns 25% or more of the business, or

2. Exercises substantial control over operations.

Example: In a Broomfield bakery with three equal partners, each partner would be classified as a beneficial owner due to shared decision-making authority.

What Information is Required?

Businesses must provide:

• Business Information: Name, EIN, physical address.

• Owner Information: Full names, birthdates, residential addresses, and ID details.

How to File

BOI reports are submitted electronically via FinCEN’s online system. Deadlines depend on the business's formation date:

• Companies formed before January 1, 2024 must file by January 1, 2025.

• Companies formed in 2024 must file within 90 days of formation.

• Companies formed after January 1, 2025 must file within 30 days of creation.

Penalties for Non-Compliance

Failing to file or providing false information can result in:

• Daily fines of $500, capped at $10,000.

• Imprisonment for serious violations.

However, FinCEN offers a 90-day safe harbor period to correct filing errors without penalties.

Why Use ZenBusiness?

While a Texas federal district court’s preliminary injunction puts this requirement on hold, many experts expect that to be overturned. In that event, failure to file could lead to fines of $500 per day, up to a maximum of $10,000, and possible criminal penalties.

Waiting could mean scrambling to meet compliance requirements or penalties. Business owners can avoid hassles and legal repercussions by filing now with the quick and accurate assistance of ZenBusiness.

Additional Resources

• FinCEN BOI FAQ

• ZenBusiness Filing Services for Small Businesses

• Step-by-Step BOI Filing Guide

• Corporate Transparency Act Deadlines

We Want to Hear from You!

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.