Business owners raise awareness over registration that could cost hundreds

PUEBLO, Colo. (KRDO) – The Corporate Transparency Act (CTA) could soon require hundreds of businesses across southern Colorado to file a Beneficial Ownership Information Report (BOIR). The disclosure rule from the U.S. Treasury Department aims to curb fraud and money laundering.

The rule was set to go into effect on January 1, 2025, but the new requirement is being considered in the Fifth Circuit Appeals Court after a challenge that originated in Texas.

The BOIR is a way for business owners to identify everyone who owns a stake in the business.

Some shop owners along Union Ave in Pueblo had no idea about the BOIR and were shocked to find out that if the rule does take effect they could have to pay a pretty penny for each day they fail to comply.

Others say it’s best to get the report in while the requirement is in limbo, so you don’t get caught off guard, or fined, if it gets approved.

“You don’t want to pay $100 or hundreds of dollars a day in fines,” said Laura Gates, owner of Machinations Entertainment.

If the rule takes effect the daily fine for anyone failing to file a report could run nearly six hundred dollars per day. It’s a toll many businesses say they can’t afford.

“I mean, $600 for a small business owner goes for products, payroll and your taxes. So, if the filing is free, just go on the website and get it done as soon as possible,” said owner of Kava Colorado, Fallon Saulters.

Even though the report is facing a federal court challenge, the owner of Seabel’s boutique says business owners should take precautions. 

“It really is scary. I don’t think people should wait. I think you might as well get it done, so you’re not at risk just in case you missed a deadline in January. If you haven’t heard about it now, you may not hear about it if they overturn it or uphold it in January,” said Rich Lane, owner of Seabel’s.

Many business owners tell KRDO13 it was a quick process. 

“It takes ten minutes to get it done. And whether it comes to fruition or not, at least you have it done and you’re not going to risk getting fines and penalties,” stated Lane.

You can find the form here.