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Hi everyone š,
Thereās been another twist in the BOI filing saga. BOI filing requirement is once again PAUSED.
TL;DR
ā¢ The BOI filing deadline was originally January 1, 2024.
ā¢ On December 3, 2024, a U.S. court blocked the BOI reporting requirement with a preliminary injunction.
ā¢ On December 23, 2024, a motions panel in the Fifth Circuit Court temporarily lifted the injunction, allowing enforcement to resume.
ā¢ On December 26, 2024, the Fifth Circuitās merits panel vacated the motions panelās stay, reinstating the preliminary injunction.Current Status: BOI reporting is once again on hold nationwide, meaning startups are not currently required to file, pending further appeals and arguments.
The FinCEN.gov/boi website has been updated to reflect this latest move by the Fifth Circuit ā āIn 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.ā The court filing is live: https://www.ca5.uscourts.gov/opinions/unpub/24/24-40792..pdf
Refresher ā whatās the BOI Report?
The BOI report is part of the Corporate Transparency Act (CTA). It requires certain U.S. companies to report detailed information about their owners to FinCEN, a government agency. Late penalties are $591/day and up to 2 years in prison.
The goal: Combat fraud and increase financial transparency.
The challenge: It creates significant compliance work for small startups.
What Should Founders Do Now?
Stay Updated: Follow ongoing legal developments to see if the reporting requirement changes again. I will post again when there are further changes. Filing is voluntary for now, if you have already filed you are better prepared for if they make this required again which would not be surprising as this ruling keeps flip flopping.
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