The Corporate Transparency Act (CTA) has introduced some strict guidelines for filing Beneficial Ownership Information (BOI) reports in order to ensure both transparency as well as compliance for all businesses, including Limited Liability Companies (LLCs). California LLCs are also required to follow the specific steps that are required to file their BOI reports accurately and on time.
Understanding these requirements is vital for any entrepreneur seeking to maintain transparency in the business and avoid any kind of legal consequence.
Who Needs to File a BOI Report for California LLCs?
All LLCs in California, regardless of their size or type, compulsorily have to file the BOI report with FinCEN. This includes any newly formed LLCs as well as the existing ones that fall under the criteria that are outlined in the Corporate Transparency Act.
Some entities like publicly traded companies and some specifically exempted entities, do not have a filing requirement.
Information to Include in a BOI Report for California LLCs
In the filing of a BOI report for a California LLC, one is required to include the following information, among others essential information:
- Full legal name of the beneficial owner(s)
- Birth date
- Residential address or business address
- A unique identification number as that of the driver’s license or passport number.
Along with that, the report should identify the LLC by showing the business name, address, and EIN or Employer Identification Number.
Deadlines, Filing Procedures and Penalties
For existing California LLCs, BOI reports must be filed before January 1, 2025. New LLCs formed in 2024 must submit their BOI report within 90 days of their registration with the state of California.
In the case of failure to file the BOI report or submission of inaccurate information, you will face severe penalties, including fines of up to $500 for each day of non-compliance or imprisonment. It is, therefore, considered a must for California LLCs to actively work towards maintaining compliance with the BOI filing guidelines in order to avoid any kind of unwanted outcomes.
Conclusion
BOI filing is an extremely crucial requirement for any and all California LLCs under the Corporate Transparency Act. Not only will making sure that the report has been filed on time be a matter of legal compliance, but one of business transparency as well.
Operating the LLC in California involves awareness of BOI reporting requirements and the instigation of all steps that must be done to file correctly to avoid penalties.