After months of legal back-and-forth, the Beneficial Ownership Information (BOI) reporting requirement is back in full force. On February 18, 2025, a federal court lifted the last remaining injunction that had previously paused enforcement of BOI reporting under the Corporate Transparency Act (CTA). But businesses now have a little more time to comply.
The Financial Crimes Enforcement Network (FinCEN) extended the deadline for most businesses to file their initial BOI reports to March 21, 2025.
While the extension offers a short reprieve, it does not eliminate the requirement. BOI reporting is now mandatory, and failure to comply can result in significant penalties. Businesses that meet the reporting criteria must ensure they file on time or risk fines and potential criminal consequences.
Key Updates from the Latest Court Ruling
- The new deadline for most businesses to file their BOI reports is now March 21, 2025, instead of the previous January 1, 2025, deadline.
- FinCEN has acknowledged concerns from small business owners and intends to explore ways to reduce the reporting burden on lower-risk entities. However, no changes have been implemented yet.
- Despite ongoing legal challenges, BOI reporting is in effect, and businesses are expected to comply.
Who Needs to File a BOI Report?
BOI reporting is part of an anti-money laundering initiative that requires businesses to disclose who truly owns or controls them. Businesses are required to disclose individuals who own 25% or more of the company or who exercise substantial control over business decisions. The requirement applies to most LLCs, corporations, and other entities formed in the United States, with some exceptions.
For businesses registered before January 1, 2024, the deadline to file is now March 21, 2025. Businesses formed on or after January 1, 2024, must file within 30 days of registration.
If you’re unsure whether your business is required to file, it’s best to seek professional guidance rather than assume you are exempt.
Why Businesses Should File Sooner Rather Than Later
Although the deadline extension provides additional time, waiting until the last minute could create unnecessary risks. Non-compliance carries steep financial penalties of $500 per day, up to $10,000 in total, and potential criminal charges, including up to two years in prison for willful violations.
While there is still the possibility of further rule changes, businesses that have already filed will not be affected by last-minute regulatory shifts.
With shifting deadlines and complex rules, working with financial regulatory experts can help ensure your BOI report is accurate and filed on time. If you need guidance determining whether your business is required to file or want help completing your BOI report, Boris Benic and Associates is here. We’ve helped businesses navigate financial regulations for decades, and we’re here to ensure your compliance and protect your business from unnecessary risks.