The Corporate Transparency Act (CTA) requires businesses to report Beneficial Ownership Information (BOI) to FinCEN to increase transparency and prevent illicit financial activities.

As of Nov. 27, 2024, Portsmouth, New Hampshire, business owners have 35 calendar days (or 25 business days) left to file their BOI report with FinCEN—don’t delay, or you could face fines of $500 per day.

What You Need to Do:

1. Determine if Your Business Must File.

Most LLCs, corporations, and small businesses are "reporting companies." Exceptions include publicly traded companies and certain regulated entities.

2. Identify Your Beneficial Owners.

Beneficial owners are individuals with substantial control or 25% or more ownership of the business. For instance, the owner of a Portsmouth-based marketing agency with a 40% stake qualifies as 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 can help make filing fast and accurate for you.

Key BOI Filing Details:

Who Needs to File?

"Reporting companies" include most LLCs, corporations, and small businesses in Portsmouth. Exemptions apply to publicly traded and regulated entities. For example, a family-owned Portsmouth restaurant would likely need to file, while a national retail franchise would not.

What Is a Beneficial Owner?

A beneficial owner is someone who:

1. Holds substantial control over the business, OR

2. Owns 25% or more of it.

For instance, a co-owner of a Portsmouth tech startup with a 30% share and decision-making authority qualifies as a beneficial owner.

What Information Is Needed?

You’ll need:

• Business name, address, EIN.

• Owners’ names, addresses, DOBs, and identification documents.

How and When to File:

BOI reports must be submitted electronically with FinCEN. Deadlines:

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

• 2024 startups: File within 90 days of formation.

• 2025+ startups: File within 30 days of formation.

Let ZenBusiness assist with your BOI filing to ensure compliance.

Penalties for Non-Compliance:

Failure to file can lead to fines of $500 per day, up to $10,000, and potential criminal penalties. A 90-day safe harbor allows corrections without penalties.

Additional Resources:

• FinCEN BOI FAQ

• ZenBusiness BOI Filing Services

• BOI Filing for Small Businesses

• Corporate Transparency Act: Reporting Requirements for Small LLCs and Corporations
   

  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.

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  DISCLAIMER: The above content wasn't created by, but is being shared by the Chamber Collaborative on behalf of a member.