FinCEN's BOI Reporting Deadline: Minneapolis-St. Paul Businesses Must File by 01/01/2025 to Avoid $500/Day Penalties
FinCEN's BOI Reporting Deadline: Minneapolis-St. Paul Businesses Must File by 01/01/2025 to Avoid $500/Day Penalties
The Corporate Transparency Act (CTA) requires certain businesses to disclose their beneficial ownership information (BOI) to FinCEN, aimed at combating financial crimes like tax evasion and money laundering.
As of today, November 27, 2024, Minneapolis-St. Paul-Bloomington business owners have 35 calendar days (or 25 business days) left to file their Beneficial Ownership Information (BOI) report with FinCEN—don’t wait, or you could face fines of $500 per day!
Action Items for Minneapolis-St. Paul Businesses
1. Determine if your business needs to file a BOI report.
Deadline: ASAP.
Most corporations, LLCs, and similar entities are “reporting companies.” Exemptions include banks, public companies, and nonprofits.
2. Identify your beneficial owners.
Deadline: December 10, 2024.
A beneficial owner is anyone with significant control or at least 25% ownership of your business.
3. Gather required information.
Deadline: December 17, 2024.
Collect names, addresses, dates of birth, and identification details for beneficial owners and the business itself.
4. File your BOI report.
Deadline: January 1, 2025, for businesses formed before 2024. New businesses in 2024 must file within 90 days of formation, and businesses formed in 2025 or later must file within 30 days.
Click here to learn how ZenBusiness can help you file easily.
More About BOI Filing
Who Needs to File?
Reporting companies include most small businesses, such as local Minneapolis coffee shops or family-owned boutiques. Exemptions apply to banks, large public companies, and charities.
What is a Beneficial Owner?
A beneficial owner is anyone who either:
Exercises substantial control over the business, or
Owns at least 25% of the company.
For example, if a small Minneapolis bakery has three co-owners, the two individuals owning 30% each and the one managing day-to-day operations qualify as beneficial owners.
What Information is Needed?
Businesses must provide details about themselves (e.g., legal name, address, and EIN) and their beneficial owners, including full names, current addresses, dates of birth, and government-issued identification.
How and When to File
BOI reports must be submitted electronically through FinCEN’s online portal. Businesses formed before January 1, 2024, must file by January 1, 2025. Companies formed this year have 90 days from formation, while those created in 2025 or later have 30 days.
Penalties for Non-Compliance
Failing to file or providing false information could result in fines up to $500 per day and even imprisonment. However, FinCEN allows a 90-day correction window for genuine mistakes.
Get Help with ZenBusiness
ZenBusiness simplifies BOI filing with expert guidance and tools, saving you time and ensuring accuracy. Get started today.
Additional Resources
Take action now to ensure compliance and avoid costly penalties!
Help us and our Chamber by completing a quick BOI survey by December 18, 2024! It only takes a few minutes, and for every 25 responses, our Chamber earns a $100 donation. [Click here to take the survey!] We appreciate your time and participation!
*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.