A recent court ruling has changed the compliance deadline for the Beneficial Ownership Information (BOI) report, a new federal requirement under the Corporate Transparency Act (CTA). Many business owners are unaware of this obligation, and with the updated deadline now set for March 21, 2025, it’s important to understand what this means and how to stay compliant.
What Is the BOI Reporting Requirement?
The CTA, which took effect in 2024, was designed to increase corporate transparency and prevent financial crimes like money laundering and fraud. Under this law, many businesses—including LLCs, corporations, and other similar entities—must disclose information about their beneficial owners (the individuals who ultimately own or control the company) to the Financial Crimes Enforcement Network (FinCEN).
Why Is There a New Deadline?
Initially, the BOI reporting requirement was scheduled to take effect earlier in 2024. However, a federal court in Texas temporarily blocked the rule, arguing that the law may have exceeded constitutional limits. That injunction created uncertainty about enforcement, but the court recently lifted the hold, meaning that businesses must now comply with the filing requirement. As a result, FinCEN has set a new deadline of March 21, 2025, for entities that were previously covered by the injunction.
Who Needs to File?
The BOI reporting requirement applies to most small businesses, including LLCs, corporations, and other registered entities. However, certain businesses, such as publicly traded companies and regulated financial institutions, may be exempt. If you’re unsure whether your business needs to file, it’s best to consult with a legal professional.
Penalties for Non-Compliance
Failing to file the required BOI report on time can result in significant penalties, including:
- Civil fines of up to $591 per day for each day the report is late
- Criminal penalties, including fines of up to $10,000 and potential imprisonment for willful violations
Given these potential consequences, it’s essential for business owners to act now to ensure compliance.
How to Comply
Filing a BOI report involves submitting information about the company’s beneficial owners, including their name, date of birth, address, and a government-issued identification number. The report must be filed electronically with FinCEN.
For many small business owners, determining whether they need to file—and ensuring all information is correctly reported—can be overwhelming. If you have questions or need assistance, our firm can help guide you through the process and ensure you meet the deadline.
Need Help?
If you’re unsure whether the BOI reporting requirement applies to your business or want assistance with filing, our law firm is here to help. Contact us today to ensure you’re in compliance before the March 21, 2025, deadline.
Stay informed, stay compliant, and avoid unnecessary penalties. Reach out today!