Update - Beneficial Ownership Reporting

This post was updated on December 24, 2024 to reflect the recent court ruling reinstating the BOI reporting requirements under the Corporate Transparency Act. For the most recent updates and what this means for businesses, read our latest post here.

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction suspending the enforcement of the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). This decision temporarily exempts businesses nationwide from filing BOI reports, originally required by January 1, 2025 for many businesses. The court raised concerns about the law's scope, suggesting it may exceed Congress's constitutional authority.

The U.S. Department of Justice is appealing the decision, and businesses should be prepared for potential changes to compliance requirements. While FinCEN continues to accept voluntary filings, organizations are encouraged to gather the necessary information to remain ready for any updates. Maintaining awareness of these developments will help ensure timely and accurate compliance if the requirements are reinstated.