Corporate Transparency Act Compliance: What Businesses Need to Know About BOI Reporting in 2025
The Corporate Transparency Act (CTA) compliance requirements are back in effect, impacting most U.S. businesses. The beneficial ownership information (BOI) reporting mandate has been reinstated, requiring businesses to submit ownership details to the Financial Crimes Enforcement Network (FinCEN). While the new BOI reporting deadline is March 21, 2025, FinCEN has announced that it will not enforce penalties for non-compliance at this time.
With potential changes ahead, businesses must still prepare for compliance. Here’s what you need to know.
What is Beneficial Ownership Information (BOI)?
BOI refers to details about individuals who own or control a company, including:
- Full legal name
- Date of birth
- Residential address
- Identifying details such as a passport or driver’s license number
Who Must Report BOI?
Most businesses registered in the U.S. must comply, including corporations, LLCs, and other similar entities. Some exemptions apply, such as publicly traded companies and certain regulated industries.
What is the Deadline for BOI Reporting?
- Businesses formed before January 1, 2024, must file their initial BOI report by January 1, 2025.
- Businesses created on or after January 1, 2024, must submit BOI within 30 days of registration.
- FinCEN’s official deadline is March 21, 2025, but enforcement remains uncertain.
How to File a BOI Report?
Businesses can submit their BOI report online through FinCEN's BOI E-Filing system.
What Are the Penalties for Non-Compliance?
Failure to file could result in civil and criminal penalties, including fines and potential imprisonment. While FinCEN has temporarily paused enforcement, businesses should remain proactive in CTA compliance to avoid risks.
Next Steps for Businesses
To ensure compliance, businesses should:
- Determine if reporting is required based on their entity type.
- Gather ownership details (legal name, address, ID details).
- Submit the BOI report via FinCEN's portal.
- Stay updated on regulatory changes and potential deadline extensions.
Conclusion
With Corporate Transparency Act compliance rules evolving, businesses must stay ahead of BOI reporting requirements to avoid future penalties. If you need assistance navigating BOI compliance, Stratax Consulting is here to help.
📞 Contact Stratax today for expert guidance on regulatory compliance and reporting.
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