BOI Update: Supreme Court Reinstates BOI Reporting
The U.S. Supreme Court has reinstated the enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. This decision reverses the 5th Circuit Court of Appeals’ Dec. 26 stay, which had temporarily halted the mandate.
Who Needs to File a BOI Report?
The CTA requires many businesses—primarily LLCs, corporations, and similar entities—to report information about their beneficial owners (individuals who own or control at least 25% of the business or have significant decision-making authority). These reports must be submitted to the Financial Crimes Enforcement Network (FinCEN) to enhance transparency and prevent financial crimes like money laundering and fraud.
What’s the Current Status?
- Businesses formed before 2024 were initially required to submit their first BOI report by Jan. 13, 2025.
- With the Supreme Court’s ruling, enforcement is back in place, but FinCEN has yet to provide updated guidance on the compliance timeline.
- The CTA remains law while the 5th Circuit continues to evaluate its constitutionality.
How to Prepare for Compliance
With the legal landscape shifting, businesses should ensure they understand who qualifies as a beneficial owner and what information must be reported, including:
- Full legal name
- Date of birth
- Residential address
- A government-issued identification number (e.g., passport or driver’s license)
Failure to comply can result in significant penalties, including daily fines and potential legal consequences.
Next Steps
The uncertainty surrounding BOI reporting deadlines makes it essential for businesses to stay informed and prepare for compliance. We are actively monitoring updates from FinCEN and will provide further guidance as soon as it becomes available.
For now, businesses should review their reporting obligations and be ready to act once FinCEN clarifies enforcement timelines.
Thank you for trusting us to keep you updated on important regulatory changes.
