The Corporate Transparency Act may require certain U.S. companies to disclose beneficial ownership information to FinCEN to combat financial crimes.

As of today, 12/05/2024, Shelby County, AL business owners have 26 calendar days (or 19 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN.

1. Determine if Your Business Must File.

A “reporting company” is any small business, corporation, or LLC that is registered with the state, unless exempt. Exemptions apply to publicly traded companies, banks, and charities. For example, a local restaurant in Shelby County, AL would likely need to file a BOI report.

2. Identify Your Beneficial Owners.

A “beneficial owner” is someone who either has substantial control over a company or owns at least 25% of it. For example, in Shelby County, the co-owner of a garden center who owns 40% of the business and actively participates in strategic planning and key decision-making processes is considered a beneficial owner.

3. Gather the Required Information.

Prepare:

• Business name, address, and EIN.

• Beneficial owners’ names, addresses, DOBs, and ID details.

4. File Your BOI Report.

Deadlines:

• Existing businesses: File by 01/01/2025.

• New companies (2024): File within 90 days of formation.

• New companies (2025+): File within 30 days of formation.

ZenBusiness offers a streamlined approach to BOI reporting for Alabama business owners, providing businesses with accurate guidance to ensure compliance with FinCEN requirements.

Penalties for Non-Compliance:

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. FinCEN provides a 90-day safe harbor period for corrections without penalties.

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

Additional Resources:

• Alabama Requirements for Beneficial Ownership Reporting

• Corporate Transparency Act - More Information

• BOI Filing Services for Alabama LLCs

• Details on Preliminary Injunction

• FinCEN’s Compliance Guidelines

• Completing the Alabama Beneficial Ownership Information Form

• FinCEN FAQ

We want to hear from you!

We need your help! Please fill out our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation! Take the survey here! Your participation makes a difference!

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.