BOI Reporting for Small Businesses
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports. Learn more about the recent court order at fincen.gov/boi.
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Update from ASBDC President & CEO C.E. “Tee” Rowe
December 4, 2024 – Yesterday the Corporate Transparency Act (CTA) and its implementing regulations, which require U.S. business entities (mostly small businesses) to report beneficial ownership and leadership information (BOI) to the Treasury Department (FinCen), were preliminarily blocked nationwide by a Texas federal court. The injunction comes just a few weeks before the January 1, 2025 deadline for compliance. The injunction temporarily bars the Treasury Department from enforcing the reporting requirements at this time, but this does not necessarily mean the CTA is gone. A preliminary injunction only means that the court found the CTA is probably unconstitutional and has issued the injunction. Litigation and appeals are likely to continue, which will cause uncertainty around next steps.
The ASBDC recommends that small businesses have their filings ready, but hold on officially submitting. If you have any questions, please reach out to your consultant.
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The Corporate Transparency Act (CTA) aims to strengthen anti-money laundering efforts by requiring entities that are formed or registered to do business in the United States to report their beneficial owners and company applicants. Entities that do not meet an exemption will have to file an initial report with FinCEN. Subsequent updated reports will also be required if the entity’s reporting individuals have a change to previously reported information.
Corporate Transparency Act Reporting Requirements – Recorded Webinar
Webinar aired in October 2024.
Mark High, Member, Detroit office of Dickinson Wright PLLC and Alexis Lupo, Corporations Division Director; Michigan Department of Licensing & Regulatory Affairs (LARA) Corporations, Securities & Commercial Licensing Bureau will be presenting on the CTA reporting. It is important that Small to Mid-sized businesses learn about reporting this information to FinCEN.