BOI Filings: What You Need to Know Now /BOI Filing Deadline Reinstated

In a recent turn of events, the U.S. Court of Appeals for the Fifth Circuit has reinstated the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This decision overturns a previous injunction that had temporarily halted enforcement. As a result, businesses are now required to file their BOI reports by January 1, 2025.

On December 3, 2024, a federal judge in Texas issued a nationwide preliminary injunction, temporarily halting the enforcement of the CTA's BOI reporting requirements. However, this decision was short-lived. On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit overturned the injunction, reinstating the BOI filing mandate.

New Deadlines

In response to the appellate court's decision, the Financial Crimes Enforcement Network (FinCEN) has adjusted the reporting deadlines:

• Existing Businesses: Entities created or registered before January 1, 2024, now have until January 13, 2025, to file their initial BOI reports.

• New Businesses: Entities created or registered on or after January 1, 2025, must file their initial BOI reports within 30 days of receiving actual or public notice that their creation or registration is effective.

These extensions provide businesses with additional time to comply with the reporting requirements.

Who Needs to File?

The BOI reporting requirements apply to a wide range of entities, including corporations, limited liability companies (LLCs), and other similar entities created by filing with a secretary of state or equivalent office. Certain exemptions exist, such as for large operating companies meeting specific criteria, regulated entities like banks, and inactive entities. However, many small businesses and LLCs will need to comply.

Consequences of Non-Compliance

Failure to file the required BOI reports can result in significant penalties, including civil fines of up to $500 per day and criminal penalties of up to $10,000 and two years in prison for willful violations. It's crucial for businesses to understand their obligations and meet the reporting deadlines to avoid these severe consequences.

How We Can Help

Navigating the complexities of BOI filings can be challenging, but our legal team is here to assist. We offer comprehensive services to ensure your business remains compliant with the latest regulations, allowing you to focus on what you do best—running your business.

Contact us today to learn more about how we can support you through this process.