IMPORTANT UPDATE – February, 2025 On February 18, 2025, following a decision by the U.S. District Court for the Eastern District of Texas in Smith v. U.S. Department of Treasury, et al., 6:24-cv-00336 (E.D. Tex.), beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (“CTA”) are once again back in effect with a new deadline of March 21, 2025.
Act Now on BOI Reporting
We want to make sure your business remains compliant with Federal regulations. All businesses, unless exempt, are once again required to file the “Beneficial Ownership Information” (BOI) report. Click HERE for new filing deadlines. BOI reporting involves providing detailed information about the individuals who own or control your company to enhance transparency and prevent illicit activities. This requirement is a result of The Corporate Transparency Act (“CTA”), which took effect on January 1, 2024. The CTA seeks to assist law enforcement in combatting money laundering, tax fraud, financing of terrorism, and other illicit activity through anonymous shell and front companies.
To accomplish this task, the CTA requires a wide variety of business organizations (referred to as “Reporting Companies”) to file an initial Business Owners Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) disclosing, among other things, information regarding the entity and its beneficial owners, and imposes a continuing obligation to report any changes to previously reported information.
How to Complete BOI Report
For those who need to complete the BOI Reporting please click the link below.
Who needs to complete the BOI Report?
- Corporations
- Partnerships
- Limited Liability Companies
- Any entities that have filed articles of incorporation/organization with the Secretary of State
Who is Exempt?
There are 23 exemptions for entities who do NOT need to file, for example:
- Non-Profit Entities
- Large operating companies with 20 or more full-time employees, a physical US-Based office and that have $5 million or more in gross revenue reported on their most recent tax filing
Tips for Completing Your BOI Report
- Have your most recent tax return in front of you.
- Have all owners’ information including birthdates and photocopies of their IDs ready for upload
If you have any questions or need guidance while completing the BOI report, please don’t hesitate to reach out to your W&D advisor at 847-267-9600; [email protected].
Thanks for your attention to this important matter. For more information regarding the BOI reporting requirements including FAQs and a helpful short instructional video visit https://www.fincen.gov/boi.
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