Corporate Transparency Act Injunction Lifted: Key Actions for Businesses
The nationwide injunction on the Corporate Transparency Act (CTA), and specifically for the Beneficial Ownership Interest (BOI) Rule has been lifted by a Texas federal judge in the case of Smith v. U.S. Department of the Treasury, paving the way for enforcement. The CTA mandates that businesses disclose beneficial ownership details to FinCEN to curb financial crimes.
However, FinCEN has provided a 30-day grace period for compliance:
- Determine if your business must file: Most LLCs, corporations, and similar entities in the U.S. are required to report, excluding certain exemptions like publicly traded companies.
- Identify beneficial owners: Anyone with at least 25% ownership or significant control over the company.
- Gather and submit required information: This includes names, birth dates, addresses, and ID numbers of beneficial owners via FinCEN’s new online system.
Non-compliance could lead to harsh penalties.
If you need assistance with CTA or BOI compliance, contact jmoore@princelaw.com immediately to get started.
[This article includes information originally reported by the Journal of Accountancy, February 2025]
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