What Your Business Needs to Do Now
A major court ruling has reinstated the Corporate Transparency Act (CTA), meaning businesses across the U.S. must comply with Beneficial Ownership Information (BOI) reporting once again. If your company was waiting due to legal uncertainty, now is the time to act.
What Just Happened?
On February 17, 2025, the U.S. District Court for the Northern District of Texas overturned a previous injunction in the case of Samantha Smith v. U.S. Department of the Treasury. This decision reactivates the enforcement of the CTA, requiring businesses to resume compliance with BOI reporting rules.
The new BOI Reporting Deadline is March 21st, 2025. FinCEN successfully challenged both Texas court decisions by reinstating the deadline. It is unfortunate, but it is now finalized.
To stay compliant and avoid fines, you must file a BOI report by March 21st, 2025.
Could the Deadline Be Extended?
A proposed bill in Congress could push the filing deadline to January 1, 2026. However, this legislation is still under review, and businesses should not assume they have extra time. Until the bill is passed by the Senate and signed into law, FinCEN’s deadline remains in effect.
Corporate Transparency Act: Who Needs to File?
Most small businesses, LLCs, and corporations in the U.S. are required to file BOI reports. These filings disclose individuals who own or control at least 25% of a company or have significant decision-making power.
Failing to file on time can result in civil fines and even criminal liability, making compliance a critical priority.
Deadlines
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Formed before January 1, 2024: File by March 21st, 2024
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Formed on/after January 1, 2024: File within 90 days of formation
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Formed on/after January 1, 2025: File within 30 days of formation
Penalties for Non-Compliance
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$591 per day per entity
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Up to $10,000 fine + criminal penalties (including jail time)
Don’t risk penalties—file your BOI report now!
You may file on the FinCen government website or using this link to File Forms. https://partners.fileforms.io/l/03568161/
The FinCen site allows you to file for free. There is a charge to use File Forms. I personally used File Forms. It was quick and easy. The choice is yours. However, please remember to file if you haven’t.
Why BOI Reporting Matters
The Corporate Transparency Act is designed to prevent financial crimes like money laundering, tax evasion, and fraud by increasing transparency in business ownership. Filing your BOI report helps ensure compliance while contributing to a more secure financial system.
Businesses should take proactive steps now to avoid penalties and unexpected deadlines. Keeping up with regulatory changes and preparing in advance will make the filing process smoother.