New Deadlines for Corporate Transparency Act BOI Reports Following Appeals Court Decision

As a small business owner, navigating the legal landscape can be challenging, especially when new laws like the Corporate Transparency Act (CTA) come into effect. This federal law introduces new reporting requirements that could impact your business, with penalties for non-compliance that include hefty fines and potential imprisonment. 

Recent developments have adjusted the deadlines for CTA compliance. On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide injunction blocking the enforcement of the Corporate Transparency Act and its implementing regulations, which had hit a pause button on filing these reports. According to the National Law Review, on December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit reinstated the CTA’s reporting requirements. Tyler Business Law Attorney Bradley Campbell can provide essential guidance for small business owners to ensure compliance with the CTA and protect your interests.

What Is the Corporate Transparency Act?

The CTA, effective January 1, 2024, is designed to combat financial crimes such as money laundering and tax evasion. It requires certain businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a branch of the U.S. Treasury Department. These reports are crucial for identifying individuals who own or control at least 25% of a business or significantly influence its operations.

The law applies to most small businesses formed by registration with a state’s Secretary of State, including corporations, LLCs, and partnerships. Larger businesses, such as those with over 20 employees and $5 million in annual revenue, as well as certain exempt organizations like banks and nonprofits, are generally excluded from these requirements.

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Key Reporting Deadlines for Tyler Business Owners

Beginning on January 1, 2024, the CTA requires almost every business entity (including, but not limited to, corporations, limited liability companies and registered partnerships) formed in the United States by registration with any state’s secretary of state to report specific information about their Beneficial Owners, Control Persons and Company Applicants to FinCEN.  FinCEN has announced updated filing deadlines based on the recent court cases:

• Businesses formed before January 1, 2024, must file their Beneficial Ownership Information (BOI) reports by January 13, 2025.
• Businesses formed between September 4, 2024, and December 23, 2024, with original deadlines affected by the injunction, have until January 13, 2025, to file.
• Businesses formed on or after December 3, 2024, have an extended deadline of 111 days from their formation date to submit their reports.

FinCEN is now accepting beneficial ownership information reports through their BOI E-Filing System. You can report here: https://boiefiling.fincen.gov/fileboir

What Information Must Be Reported?

To comply with the CTA, businesses must provide detailed information about their entity and its beneficial owners, including:

• Company Information: Full legal name, trade names, principal place of business, and tax identification number.
• Beneficial Owners’ Details: Name, date of birth, residential address, and an identification number from a government-issued ID, such as a driver’s license or passport.
• Company Applicants (for newer entities): Information about individuals who filed formation documents with the state.

Changes in reported information, such as changes in ownership, must be updated with FinCEN within 30 days.

Consequences of Non-Compliance

Failing to meet the reporting requirements or missing the filing deadlines can result in significant penalties, including:

• Fines of up to $10,000.
• Imprisonment for up to two years.
• Additional penalties for providing false or incomplete information.

Businesses must remain vigilant to avoid these penalties by ensuring accurate and timely reporting.

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How a Tyler Business Law Attorney Can Help

Meeting the requirements of the CTA involves understanding complex regulations and gathering sensitive information. A Tyler business law attorney can:

• Assess whether your business is subject to the CTA.
• Guide you in collecting and submitting the required information.
• Help you address changes in beneficial ownership promptly.
• Protect your business from potential legal challenges or penalties.

At Campbell Law Firm, we help guide small business owners in navigating regulatory requirements like the CTA. Our tailored approach ensures that your business stays compliant while you focus on its growth and success.

Tyler Small Business Owners Should File BOI Now

The reinstatement of the CTA reporting requirements means time is of the essence. If you’re unsure about your company’s obligations or need help preparing your BOI report, don’t wait—book a consultation with a seasoned Tyler business law attorney at Campbell Law Firm. We’re here to provide clarity, support, and peace of mind as you meet your reporting obligations.

Key Takeaways:

• The Corporate Transparency Act requires many small businesses to file beneficial ownership reports with FinCEN.
• Deadlines vary depending on your business's formation date, with most filings due by January 13, 2025.
• Non-compliance can lead to severe penalties, including fines and jail time.
• A Tyler business law attorney can help you navigate the reporting process and avoid costly mistakes.

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