Well, Just When We Thought It Was Gone… It’s Back!
On December 23, 2024, the Fifth Circuit Court of Appeals decided to revive the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). Yup, it’s like the plot twist nobody asked for, but here we are. After a brief pause thanks to a nationwide injunction issued on December 3, 2024, the CTA’s reporting rules are back in full swing, and businesses need to prepare—again.
Let’s break this down in plain English (because, let’s face it, no one wants to read legal jargon).
What Is BOI Reporting Anyway?
Think of BOI reporting as the government’s way of saying, “Tell us who’s really running the show.” If you own a small business or an LLC, you may need to report info about the individuals who own or control your company. It’s all part of the fight against financial crimes like money laundering. A noble goal, sure—but also a bit of a headache for small businesses (NFIB).
So, What Just Happened?
Here’s the quick recap: A Texas court hit pause on these requirements earlier this month. Small business owners everywhere probably did a little happy dance. But as of December 23, 2024, the Fifth Circuit Court of Appeals said, “Not so fast!” and reinstated the CTA’s BOI rules. To soften the blow (just a little), FinCEN extended the reporting deadlines (Reuters).
New Deadlines You Need to Know
For Businesses Created Before January 1, 2024:
You’ve got until January 13, 2025, to file your first BOI report.
For Businesses Created On or After January 1, 2024:
Your report is due within 30 days of formation.
Who Needs to File?
If you’re a small business or LLC, chances are good this applies to you. Exceptions include publicly traded companies and certain nonprofits. If you’re not sure where you fall, don’t guess—head over to our handy guide at Protect What You Built to find out.
Why You Shouldn’t Ignore This
Ignoring BOI requirements isn’t just risky—it’s expensive. Think $500 per day in fines. Oh, and criminal charges could be on the table for extreme cases. Not fun. Filing on time is way easier than dealing with those consequences (WSJ).
What You Should Do Next
- Check Your Obligations: Find out if your business needs to file.
- Gather Your Info: You’ll need details like names, addresses, and ID numbers of your beneficial owners.
- File Early: Deadlines are closer than they appear in the rearview mirror. Avoid a last-minute scramble.
Let Us Help You Make It Easy
We know this isn’t what you want to spend your holiday season thinking about. That’s why we’re here to help. Visit Protect What You Built for a step-by-step guide to filing your BOI report. We’ll make it as painless as possible!
