FinCEN Mandates BOI Reporting for Cambridge, MA Businesses: File by 01/01/2025 or Face Penalties
The Corporate Transparency Act (CTA) requires Cambridge, MA businesses to submit Beneficial Ownership Information (BOI) to FinCEN by January 1, 2025, to combat financial crimes such as money laundering and tax evasion.
As of today, 11-26-2024, Cambridge business owners have 36 calendar days (or 27 business days) left to file their BOI reports with FinCEN—failure to file may result in daily fines of $500.
Steps for Cambridge Businesses to Stay Compliant
1. Confirm Your Reporting Obligation
Deadline: ASAP
Most LLCs, corporations, and similar entities need to file unless exempt (e.g., publicly traded companies, banks, or charities).
2. Identify Beneficial Owners
Deadline: 12-10-2024
Beneficial owners include anyone who:
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Owns at least 25% of the company, or
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Exercises substantial control over its operations.
3. Collect Required Information
Deadline: 12-17-2024
Prepare the following:
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Company Details: Name, EIN, and physical address.
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Owner Details: Full names, dates of birth, residential addresses, and ID numbers.
4. File Your BOI Report
Deadlines:
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Pre-2024 companies: File by 01/01/2025.
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2024 companies: File within 90 days of formation.
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Post-2025 companies: File within 30 days of registration.
Learn how ZenBusiness simplifies BOI filing.
BOI Reporting Overview
Who Needs to File?
"Reporting companies" include most small businesses in Cambridge, such as local consultancies or retail stores structured as LLCs. However, banks, nonprofits, and publicly traded companies are exempt.
What Is a Beneficial Owner?
A beneficial owner is anyone who either:
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Owns 25% or more of a company, or
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Has substantial control over its policies and decisions.
For instance, if a local boutique in Cambridge is co-owned by two partners, one holding a 30% stake and the other managing all operations, both would qualify as beneficial owners.
What Information Is Needed?
Each BOI report must include:
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Company Information: Legal name, EIN, and physical address.
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Owner Information: Full names, addresses, birthdates, and ID numbers.
How and When to File
Submit reports electronically via FinCEN’s online portal. Deadlines depend on your company’s formation date:
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Pre-2024 companies: File by 01/01/2025.
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2024 companies: File within 90 days of formation.
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2025 and later: File within 30 days of formation.
Penalties for Non-Compliance
Missing the deadline or submitting false data can incur $500 per day in fines and possible imprisonment. A 90-day safe harbor allows corrections for accidental errors.
ZenBusiness: Your BOI Compliance Partner
ZenBusiness offers trusted solutions to ensure BOI reports are accurate, complete, and submitted on time. Save time, avoid penalties, and let their expertise work for you. Start your BOI filing today.
Additional Resources
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.
