Businesses in Hampton, Virginia, must meet the Corporate Transparency Act (CTA) requirements by filing Beneficial Ownership Information (BOI) with FinCEN before January 1, 2025, to comply with federal anti-financial crime laws.
As of today, November 26, 2024, Hampton business owners have 36 calendar days (or 26 business days) left to submit their BOI reports to FinCEN—failure to comply could result in fines of $500 per day.
Steps to Ensure BOI Compliance
1. Determine if Your Business Needs to File
Deadline: ASAP
"Reporting companies" include most small corporations and LLCs, excluding publicly traded companies, banks, and nonprofits.
2. Identify Your Beneficial Owners
Deadline: December 10, 2024
A beneficial owner is anyone who:
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Exercises substantial control over the company, OR
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Holds 25% or more ownership interest.
ZenBusiness can help simplify this process for you.
3. Gather the Required Information
Deadline: December 17, 2024
Collect and organize:
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Business information: Name, address, and EIN.
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Beneficial owner details: Names, addresses, birth dates, and ID documentation.
4. Submit Your BOI Report
Deadline: January 1, 2025
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Existing businesses (formed before 2024): File by 01/01/2025.
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New businesses (formed in 2024): File within 90 days of formation.
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Future businesses (formed after January 1, 2025): File within 30 days of formation.
ZenBusiness can guide you through the BOI report process to ensure timely filing.
Understanding BOI Filing Requirements
Who Needs to File?
Most small businesses in Hampton, including local restaurants, boutiques, and LLCs, are required to file BOI reports. Exemptions include charities, publicly traded entities, and banks.
Example: A local Hampton-based LLC specializing in landscaping must comply and file its BOI.
What Defines a Beneficial Owner?
Beneficial owners include those who:
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Hold substantial control over decision-making processes, OR
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Own 25% or more of the company.
Example: If a Hampton family-owned bakery has two equal partners, both are considered beneficial owners and must be reported.
What Information Is Required?
Businesses must file:
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Entity information: Name, address, and EIN.
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Owner details: Full name, address, birthdate, and government-issued ID.
All reports must be submitted electronically through FinCEN's secure portal.
Consequences of Non-Compliance
Failing to file or providing false information may result in:
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Daily fines: $500 per day, capped at $10,000.
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Imprisonment: Potential criminal penalties for intentional violations.
Mistakes? FinCEN allows a 90-day safe harbor for corrections without penalties.
How ZenBusiness Can Help
ZenBusiness simplifies the BOI filing process, offering expert guidance to ensure compliance and save you time. Start filing today.
Additional Resources
Take action today to meet the January 1, 2025 deadline and avoid costly fines!
Your input makes a difference! Take a few minutes to 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 supporting our Chamber and sharing your feedback!
*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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