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As of January 13, 2025, the Beneficial Ownership Information Report (BOIR) filing requirement under the Corporate Transparency Act (CTA) is in effect. However, as of March 3, 2025, there have been key updates affecting enforcement and deadlines. Here’s what you need to know to stay compliant.
What Is the BOIR and Why Does It Matter?
The BOIR is a report that identifies the individuals who own or control a company—referred to as “beneficial owners.” The goal is to increase transparency and combat financial crimes. Failing to file on time can result in fines of $500 per day, up to $10,000.
Who Needs to File the BOIR?
Most corporations, LLCs, and similar entities must file. Here’s the breakdown:
- Businesses formed before January 2024: File by March 21, 2025.
- Businesses formed after January 2024: File within 30 days of formation.
Exemptions include:
- Publicly traded companies.
- Large businesses with over 20 employees and $5 million in revenue.
- Inactive businesses.
What Information Needs to Be Reported?
The BOIR requires information on each beneficial owner, defined as someone who:
- Owns 25% or more of the company, or
- Has significant control over the company.
Required details include:
- Full legal name
- Date of birth
- Residential address
- Unique identifying number (passport, driver’s license)
Key Updates (As of March 3, 2025)
- Enforcement Paused: The U.S. Treasury Department announced it will not enforce BOIR filing penalties immediately. Businesses will not face fines for missing deadlines.
- Extended Filing Deadline: The new filing deadline is March 21, 2025. This gives businesses more time to comply.
- Future Rule Changes: FinCEN plans to revise the BOIR filing rules later this year to reduce the burden on small businesses.
Filing Your BOIR: A Quick Guide
- Verify Filing Requirement: Businesses formed before January 2024 must file by March 21, 2025. If formed after January 2024, file within 30 days of formation.
- Gather Information: Collect required details for each beneficial owner (name, birthdate, address, and identifying number).
- Access the Filing Portal: File electronically through the FinCEN portal for a quicker, more efficient process.
- Complete the Form: Fill out the form with accurate details to avoid delays.
- Submit the Report: Submit your report and save the confirmation for your records.
Don’t Miss the Deadline!
If your business was formed before January 2024, file by March 21, 2025. For businesses formed after January 2024, file within 30 days of formation.
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