Small Business Advisory: The Woodlands Area Chamber of Commerce announces deadline to register Beneficial Ownership Information

THE WOODLANDS, TX – The Woodlands Area Chamber of Commerce, in partnership with the U.S. Chamber of Commerce, has announced some important news. Many companies are required to report information to the U.S. Treasury Department’s Financial Crimes Enforcement network (FinCEN) about the individuals who ultimately own or control them. FinCEN began accepting reports on January 1, 2024. With previous extensions lapsed, the deadline is now rapidly approaching.

The Corporate Transparency Act (CTA) was enacted in 2021 to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Owner Information Report (BOIR) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). This report provides details identifying individuals who are associated with the reporting company.

For most eligible businesses, the filing deadline is January 1, 2025. Those who fail to file by this deadline – or fail to update this information if needed – could face up to two years imprisonment and fines up to $10,000, in addition to civil penalties of up to $591 per day.

A reporting company for the purposes of the BOIR is a for-profit, privately held company registered to conduct business in the U.S. that has 20 or fewer employees or has $5 million or less in gross sales receipts.

There are 23 exemptions. To find out if your business is exempt, or for full information on how to file your BOI, click on https://www.fincen.gov/boi.