After a temporary pause, the Financial Crimes Enforcement Network (FinCEN) has reinstated the requirement to submit Beneficial Ownership Information Reports (BOIR) under the Corporate Transparency Act (CTA). Businesses must now comply with these reporting obligations to avoid penalties.
What This Means for Business Owners
On February 18, 2025, the U.S. District Court for the Eastern District of Texas ruled to reinstate the BOIR requirement. In response, FinCEN has set a March 21, 2025, deadline for most businesses to file their initial BOIR if they have not already done so.
Additionally, reporting companies that need to update their beneficial ownership information due to changes or correct errors in previously submitted reports must do so by the same March 21, 2025, deadline.
Some businesses may have a later deadline if they qualify for disaster relief extensions or other exceptions. However, businesses that have been ruled exempt from the BOIR requirement—such as the National Small Business Association and its members, as well as entities for which Isaac Winkles is the beneficial owner or applicant—remain exempt at this time.
For entities formed after February 18, 2025, any changes in beneficial ownership information or corrections to a previously submitted BOIR must be reported within 30 days of the change or discovery of the error.
Severe Penalties for Non-Compliance
The penalties for missing a BOIR filing deadline remain significant. Businesses that fail to comply may face:
- Civil penalties of $606 per day for non-compliance,
- Criminal fines up to $10,000, and
- Up to two years in prison for willful violations.
If your company qualifies as a reporting company and does not meet any exemption criteria, failure to file on time could lead to serious financial and legal consequences.
How Our Law Firm Can Help Your Business Stay Compliant
The CTA affects compliance, risk management, and business strategy. Our legal team can assist you with:
1. Tailored Legal Guidance
We help you understand how the CTA applies to your specific business structure and compliance obligations.
2. Comprehensive Compliance Support
Our attorneys manage the complexities of BOIR filing, ensuring timely submission and minimizing business disruptions.
3. Strategic Planning
Beyond compliance, we provide legal insights on how corporate transparency laws impact your operations and long-term strategy.
Next Steps: Protect Your Business
If you have questions about the Corporate Transparency Act or need assistance with BOIR filing, our law firm is here to help. Contact Davis Burch & Abrams today to schedule a consultation.
We look forward to being your trusted legal partner in corporate transparency compliance.