This is a reporting system started by FINCEN (Financial Crimes Enforcement Network). The acronym is BOI. This reports to the government who gets benefit of ownership or has decision making capabilities for companies in business. This applies to any company or entity that is registered with the State Corporation Division. Currently these are LLCs, (Limited Liability Companies), Partnerships, and small corporations. There are exclusions that may apply.
A federal district court in Texas issued an injunction on Dec 3 2024 that temporarily blocks enforcement of the Corporate Transparency Act and its reporting rule. The U.S. Department of Justice has filed an appeal. The court decision means that reporting companies as defined by the law do not have Beneficial Ownership Information (BOI) reporting requirements, including a Jan 1 2025 deadline for all businesses formed or registered prior to Jan 1 2024 while the injunction is in place.
At this point, compliance is voluntary. When FINCEN hits the courts again, mandatory dates may apply again. This does not apply to individuals who are in business as a Sole Proprietor under their own name.
The final outcome of this case remains uncertain, so individuals subject to BOI reporting should stay up to date while the injunction is in effect because legal proceedings could reverse the decision and reinstate compliance requirements.
AccounTax can provide this service and e-file for you. Please contact our office.
