The Corporate Transparency Act (CTA) requires Houston businesses to file Beneficial Ownership Information (BOI) with FinCEN by January 1, 2025, ensuring transparency and preventing financial misconduct.

As of today, December 4, 2024, Houston business owners have 28 calendar days (or 18 business days) to meet the deadline—non-compliance could result in fines of $500 per day.

Key Steps for BOI Filing

1. Confirm if Your Business Needs to File

Deadline: ASAP
Most LLCs, corporations, and similar entities in Houston are required to file unless exempt (e.g., nonprofits, publicly traded companies).

2. Identify Your Beneficial Owners

Deadline: December 10, 2024
A beneficial owner is defined as someone who:

• Exercises substantial control over the company, OR
• Owns at least 25% of the business.

ZenBusiness can simplify this process for you—check it out.

3. Prepare the Necessary Information

Deadline: December 17, 2024
You'll need:

• Business Information: Legal name, EIN, address.
• Owner Information: Full names, birth dates, residential addresses, and valid government ID details.

4. File Your BOI Report

Deadlines vary based on company formation date:

• Existing companies: Must file by 01/01/2025.
• New companies (2024): File within 90 days of formation.
• New companies (2025 and later): File within 30 days of formation.

Learn more about how ZenBusiness makes filing easy and stress-free.

What Houston Businesses Need to Know

Who Needs to File?

Most businesses, including small LLCs and corporations, must report unless exempt.
Example: A Houston-based catering business with a few owners must file, while a publicly traded oil company is exempt.

What is a Beneficial Owner?

A beneficial owner is:

1. Someone with significant control over company decisions, OR
2. An individual owning 25% or more of the company.
   Example: If a Houston coffee shop has a majority owner holding 50% and a manager controlling daily operations, both are beneficial owners.

What Information is Required?

Businesses must provide:

• Entity Details: Name, EIN, address.
• Ownership Information: Full names, home addresses, birth dates, and official ID details of beneficial owners.

Penalties for Non-Compliance

Failure to meet BOI requirements can result in:

• Fines of $500 daily, up to $10,000.
• Criminal charges, including imprisonment.

Mistakes? FinCEN offers a 90-day safe harbor to correct errors.

Simplify BOI Filing with ZenBusiness

ZenBusiness provides expert assistance for BOI compliance, ensuring accuracy and peace of mind. Don’t risk penalties—get started with ZenBusiness today.

Additional Resources

• FinCEN BOI FAQ
• Learn About ZenBusiness BOI Filing Services
• Is My Business Exempt from the CTA?
• What Are the CTA Filing Deadlines?
• Use This Guide to Understand BOI Compliance
• BOI Filing for Small Businesses

We want to hear from you! Take our quick survey by December 18, 2024 to share your knowledge about Beneficial Ownership Information (BOI) filing. It only takes a few minutes. Plus for every 25 responses, our Chamber will receive a $100 donation! [Click here to take the survey now!] Thank you for your time and valuable 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.