**UPDATE Dec 5th, 2024**
After posting this original blog regarding the Beneficial Ownership Information (BOI) Report filing requirement under the Corporate Transparency Act (CTA), I learned that a Texas court issued an injunction last Wednesday challenging the constitutionality of the CTA. This injunction temporarily suspends the January 1, 2025, deadline for filing BOI reports.
While the injunction currently pauses the requirement, it’s important to monitor this situation closely. If the injunction is lifted, the filing deadline could still be enforced, and compliance would be necessary.
We will keep you updated as we learn more and will notify you of any changes to this requirement. In the meantime, please feel free to reach out if you have any questions or concerns.
You may read the original article below, but please note that the information is not up-to-date.
If you own an LLC or corporation, especially one that was recently formed, you need to be aware of a new federal requirement that could affect your business. As part of an effort to combat money laundering and enhance corporate transparency, the U.S. government now requires certain businesses to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).
Let’s break down what this means and why it matters to your business.
What Is the Beneficial Ownership Information Report?
The BOI Report is a disclosure form that provides information about the individuals who own or control your business. The goal is to prevent anonymous companies from being used for illegal activities like money laundering and fraud. FinCEN collects this information but does not make it public—it’s solely for use by law enforcement and government agencies.
Who Needs to File?
Most LLCs, corporations, and other entities formed in the U.S. or registered to do business here are required to file a BOI Report. However, there are some exceptions, such as publicly traded companies and certain regulated entities. If we helped you set up your LLC or corporation, you likely need to comply with this reporting requirement.
What Information Must Be Reported?
The report includes details about your company and its beneficial owners. Specifically, you’ll need to provide:
- Company Information:
- Legal name
- Address
- State of formation
- Employer Identification Number (EIN)
- Beneficial Owner Information:
- Full name
- Date of birth
- Address
- A unique identifying number from an acceptable document (e.g., driver’s license or passport)
Beneficial owners are individuals who either:
- Own at least 25% of the company, or
- Exercise substantial control over it (such as making key decisions).
When Is the Deadline?
If your business was formed before January 1, 2024, you have until January 1, 2025, to submit the report. For businesses formed after January 1, 2024, the report is due within 30 days of formation.
What Happens If You Don’t File?
Failure to file can result in significant penalties, including fines and even criminal charges. Ensuring compliance is not just a legal obligation—it’s a critical step in protecting your business from potential legal exposure.
How Can We Help?
Navigating regulatory requirements like the BOI Report can be overwhelming, but you don’t have to do it alone. As your trusted estate planning attorneys, we’re here to guide you through the process, ensuring your business stays compliant.
If we helped you establish your LLC or corporation and you have questions about filing the BOI Report, don’t hesitate to reach out. Staying proactive now can save you from potential headaches down the road.
Final Thoughts
The BOI Report may seem like just another regulatory hurdle, but it plays a crucial role in promoting transparency and accountability. By understanding the requirements and staying ahead of deadlines, you can keep your business in good standing and avoid unnecessary risks.
Let us help you protect your business and your peace of mind. Contact our office today to discuss your next steps!
