Skip to main content
Reminder – Corporate Transparency Act Filing Deadline is Soon Approaching
As we are quickly approaching the end of the year, everybody is scrambling to crunch numbers, prepare for the holidays, and set sight for 2025.
This is a reminder that business owners in the US with entities that existed before January 1, 2024, must register their Beneficial Ownership Information (BOI) with the federal government. This is required and due to the Corporate Transparency Act (CTA) by the end of 2024. Entities formed after January 1, 2024, have to register within 90 days after being formed.
Entities are required to report their BOI online with FinCEN. The penalties under the CTA for not registering by the end of the year are quite serious. From the FinCEN website:
A person who willfully violates the … reporting requirements may be subject to civil penalties of up to $500+ for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
For additional information on the CTA or BOI filing requirements, please see the RKG Law blog posts linked below:
- Small Business Owners Need to Register Under the Federal Corporate Transparency Act
- An Update to the Corporate Transparency Act
- Condominium and Homeowners’ Associations to Register Under the Federal Corporate Transparency Act
Do not let the hustle of holidays set your business back! If you need assistance filing your BOI information, please contact RKG law today. One of our experienced attorneys will help you through the process and ensure your business is staying compliant with today’s rigorous standards and requirements while you focus on the end-of-year requirements.
Update
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against the enforcement of the Corporate Transparency Act (CTA).
What does this mean for business owners subject to beneficial ownership information (BOI) reporting requirements under the CTA?
The injunction means that businesses are not currently required to comply with the CTA. However, further appeals and court decisions could reinstate the CTA’s enforceability. If the injunction is overturned on appeal, businesses would likely need to act quickly to meet BOI reporting deadlines.
Therefore, while businesses are not currently required to file their BOI, it is recommended to file this information with FinCEN to reduce risks.