Big BOI Reporting Update: Small Businesses Get a Break from the Deadline!

Good news for small business owners! The Fifth Circuit Court of Appeals has put the Corporate Transparency Act’s (CTA) reporting requirement on pause again.

On December 26, a court panel lifted the nationwide injunction on the Corporate Transparency Act’s (CTA) requirement to report beneficial ownership information (BOI). This means reporting companies don’t have to file BOI reports for now and get a break.

The CTA aims to enhance financial transparency by requiring businesses to provide beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). But the rollout has been a disaster. Compliance rates are below 10%, and business owners are confused and unaware of the law.

Who Needs to File BOI Report?

Organizations established before January 1, 2024, are required to disclose their beneficial owners under the CTA. However, businesses registered after January 1, 2024, have 90 days to report, while those created after January 1, 2025, must file within 30 days.

BOI Reporting Delays: What Does It Mean for You?

With the requirement to file the BOI report on hold, the decision is still subject to further court proceedings. The National Federation of Independent Business and other groups have opposed the injunctions. They filed a lawsuit called Texas Top Cop Shop, Inc. v. Garland. and argued that this regulation is pointless and burdensome. Subsequently, the court issued a preliminary injunction that temporarily halted the BOI reporting.

The deadline drama was still in chaos, and on December 23, the 5th Circuit Court of Appeals lifted the orders mandating businesses to report their UBOs again. Meanwhile, FinCEN extended the deadline to January 13, 2025.

Does BOI Reporting Apply to You?

If the BOI filing requirement is reinstated, you’ll need to file if you have a small business or LLC unless you are exempt.

Businesses with over 20 employees or over $5 million in annual revenue are exempt. But if you are a corporation, LLC, or filed through a state filing, you may be a “reporting company” unless another exemption applies. The legal back and forth has been exhausting, but here’s the key takeaway:

The penalty for not filing the UBO data could be a great setback for you. Move on without constantly stressing over the enforcement of this rule. File your BOI reporting if you haven’t already.

$591 a day, $10,000 in penalties, or even jail none of this will be your problem. Filing now erases the fear and puts you in control.