Alert: BOI reporting is out?
On December 3, 2024, a district court issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act (CTA). That law required corporations and LLCs not otherwise exempt to register with the Treasury at FinCEN… Beneficial Ownership Information (BOI) reporting. But this isn’t the end of the story. The government filed a notice of appeal with the appellate court, and FinCEN says “deadline stay—voluntary submission only.” Note: There are cases in other courts challenging CTA that are still pending.
FinCEN has a 5 minute video on how to file a Beneficial Ownership Information (BOI) report using its e-filing system. Check to see if your entity is a reporting company and whether you are a beneficial owner who has to file a report. A reporting company is a domestic entity (e.g., corporation, LLC) created by filing a document with the secretary of a state in the U.S. (different rules apply to foreign entities). A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests. Filing deadline owners of a reporting company in existence before 2024 is December 31, 2024. Earlier this month, FinCEN said it received 6.5 million filings of the estimated 32 million expected. #IdeaoftheDay
