Stay Ahead: FinCEN BOI Filing for Hobbs, NM Due by 01/01/2025

The Corporate Transparency Act mandates certain U.S. companies to disclose their beneficial owners to combat financial crimes.

As of today, 12/04/2024, Hobbs, NM business owners have 27 calendar days (or 20 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!

1. Determine if Your Business Must File.

Most LLCs, corporations, and small businesses qualify as “reporting companies.” Exemptions apply to publicly traded companies and certain regulated entities.

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 Hobbs, a co-owner of a local hardware store who owns 40% of the business and makes strategic decisions about inventory and supplier contracts 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 offers assistance in navigating the BOI reporting process with their comprehensive guidance and tools, ensuring businesses comply with FinCEN requirements efficiently.

Who Needs to 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 Hobbs, NM would likely need to file a BOI report.

What Is a Beneficial Owner?

A beneficial owner is someone who:

1. Holds substantial control over the company, OR

2. Owns 25% or more of it.

For example, a managing partner of a local coffee shop in Hobbs who holds 35% ownership and makes decisions about hiring and menu selection 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 companies: File by 01/01/2025.

• 2024 startups: File within 90 days of formation.

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

ZenBusiness offers a streamlined approach to BOI filing for small businesses, ensuring small business owners meet FinCEN requirements without the hassle of navigating complex compliance rules.

Penalties for Non-Compliance:

Failure to file can result in fines of $500 per day, up to $10,000, and potential criminal penalties. FinCEN offers a 90-day safe harbor for corrections without penalties.

Additional Resources:

• Learn What a Beneficial Owner Is

• BOI Filing Services for LLCs from ZenBusiness

• Understanding the Corporate Transparency Act

• BOI Filing Help for Small Businesses

We want to hear from you!

Don’t miss out on the chance to support our Chamber! Complete our BOI survey by December 18, 2024, and for every 25 responses, we’ll receive a $100 donation. Take the survey here! Your participation is invaluable!

*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.