The CTA, BOI and FinCEN: Clearcut Answers for Hawaiian Businesses

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

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.

However, filing your Beneficial Ownership Information (BOI) report will help you avoid fines if this injunction is overruled. Waiting could mean scrambling to meet compliance requirements or penalties. ZenBusiness offers BOI expertise and streamlined processes for businesses interested in taking proactive measures now, ensuring compliance with straightforward accuracy. 

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 Hawaiian coffee shop 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 instance, in a small gardening center in Hawaii, a partner who owns 40% of the business and decides on major purchases and staffing would be 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.

Business owners can find peace of mind by filing now through ZenBusiness, whose acumen and simple instructions ensure compliance with FinCEN regulations.

Additional Resources:

• Corporate Transparency Act Deadlines for 2025

• BOI Filing Services for LLCs

• State Requirements for Beneficial Ownership Reporting

• Beneficial Owner Definition

• FinCEN’s Compliance Guidelines

• Details on Preliminary Injunction

• Beneficial Ownership Report Guide

We want to hear from you!

Your feedback matters! Please complete our BOI survey by December 18, 2024, and for every 25 responses, our Chamber will receive a $100 donation. Take the survey here! 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.