ATTENTION BUSINESS OWNERS!
Jan. 6, 2025
Attention business owners! Recent rulings have caused a whirlwind of changes to the Beneficial Ownership Information Report (BOIR) requirements. If you’ve been unsure about where your business stands, now is the time to get crystal clear on your filing obligations and avoid potential penalties.
The December Rollercoaster
On December 23, 2024, the preliminary injunction stopping BOIR enforcement was lifted, meaning the Treasury's BOIR requirements were back in play—temporarily. The updated deadlines included a critical change for businesses formed before January 1, 2024, requiring them to file by January 13, 2025. Companies created between September 4, 2024, and December 23, 2024, also had until this same date to comply. If your entity was formed after December 23, 2024, the requirement to file a BOIR within 30 days of formation still applied.
However, the stability didn’t last long. On December 26, 2024, the Fifth Circuit Court reinstated the injunction, putting mandatory BOIR filing on pause once again.
What Does This Mean for Your Business?
Currently, BOIR filing is optional, as the injunction blocks enforcement. This ongoing legal limbo has left many businesses wondering how to act. The uncertainty could be short-lived—if the Department of Justice succeeds in overturning the injunction, businesses may face tight deadlines to comply and could be penalized for late or incorrect filings.
Why BOIR Matters
Introduced under the Corporate Transparency Act (CTA), the BOIR aims to combat financial crimes by requiring businesses to disclose individuals with significant ownership or control. Failing to comply can result in hefty penalties of up to $591 per day, and willful misrepresentation penalties can climb as high as $25,597—plus potential imprisonment for up to two years.
Key Information to Prepare
If enforcement resumes, businesses will need to submit details like:
Full legal name
Date of birth
Address
Government-issued ID
This applies to individuals holding a 25% ownership interest or having substantial control over the entity.
Recommendations for Businesses
While filing is not currently mandatory, it’s wise to take the following steps out of caution and readiness for potential future enforcement:
Gather Your Information: Ensure your beneficial ownership details are accurate and up to date.
Stay Updated: Monitor FinCEN and government releases for changes in the legal status of BOIR requirements.
Consider Voluntary Submission: Filing now, even though optional, can prevent a last-minute scramble should the rules be reinstated.
Consult Professionals: Legal and compliance professionals can guide you through the filing process and help you avoid costly errors.
Protect Your Business, Protect Your Future
The BOIR landscape is complex and constantly evolving. Staying informed is no longer optional—it’s essential. Don’t wait until it’s too late to act. If you need expert help with completing and filing your Beneficial Ownership Information Report, reach out to info@sgreenpclaw.com
Your business deserves to be compliant, prepared, and protected—take the first step today!
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