Urgent Update! CTA Filing Deadline Returns on January 1, 2025
In a last-minute change of course, the 5th Circuit Court of Appeals lifted the pause on the Corporate Transparency Act (CTA). This means businesses must once again file their Beneficial Ownership Information (BOI) reports by January 1, 2025.
What Does This Mean?
If your company is formed or registered in the U.S., you’ll likely need to report who really owns and controls it. This extra layer of transparency helps combat financial crimes like money laundering and terrorist financing.
Why the Sudden Change?
A Texas District Court put a temporary hold on the CTA, but the 5th Circuit Court’s ruling (announced on 12/23/24) reinstated the original timeline. With less than ten days to go, it’s time to act fast!
Who Needs to File?
Entities Required to File: Most small and medium-sized LLCs, corporations, and other similar structures. Generally if you are registered with the Secretary of State as an entity you need to file by 1/1/25!
What Happens If You Don’t Comply?
- Civil Penalties: Fines up to $591 per day until you file.
- Criminal Penalties: Potential jail time if you’re found to be willfully non-compliant.
How to Get Compliant
- Identify Beneficial Owners: Find the people who actually run or significantly own your business.
- Gather the Right Details:
- Full name
- Date of birth
- Residential address
- Government ID number (e.g., passport or driver’s license)
- Use Compliance Tools: Services like FileForms (https://fileforms.com/) make the process smooth, secure, and efficient, submitting directly to FinCEN on your behalf or you can file yourself at Beneficial Ownership Information Reporting | FinCEN.gov
Why This Deadline Matters
By promoting transparency, the CTA helps protect everyone from illegal financial activity. Staying compliant not only avoids hefty penalties, it also safeguards your company’s reputation.
Need assistance? If you have any questions, don’t hesitate to reach out.
