Small Business Alert: Mandatory BOI Filing Deadline for CTA Compliance Scheduled for December 31, 2024

By now, most business owners are familiar with the bipartisan Corporate Transparency Act (CTA), which was passed in 2021 to combat money laundering through shell companies or other opaque ownership structures. With the initial BOI reporting deadline just weeks away, it’s a good time to review the law’s requirements and what you need to do to remain compliant with federal regulations.

WHAT’S REQUIRED: The CTA requires all domestic and foreign reporting entities that were created or registered to do business in the U.S. to file a Beneficial Ownership Report or BOI with the Financial Crimes Enforcement Network (FinCEN).

WHO MUST FILE: Nearly all privately held corporations, partnerships, and limited liability companies – including single member LLCs – must file. As part of each filing, you must be prepared to provide information and details for both the reporting entity and each beneficial owner and senior officers (CEO, president, etc.) of the company.

WHO IS EXEMPT: There are very few exemptions to the filing requirement, including certain publicly traded companies, non-profits, and large operating companies such as banks, credit unions, insurance companies, accounting firms, public utilities and inactive entities. View the entire list of exemptions here.

WHEN IS FILING REQUIRED: The deadline for filing your initial BOI report is December 31, 2024. Compliance is mandatory. Failure to meet the deadline may result in civil and criminal penalties.

HOW & WHERE TO FILE: Filing must be done directly with the Financial Crimes Enforcement Network (FinCEN), and their website provides helpful links to get through the process from start to finish. Here’s a road map we suggest you follow:

Overview of the BOI filing process
Overview of the process
FAQs

Filing offline using FinCEN’s PDF form
Step by step instructions
File by PDF

Direct online filing
Step by step instructions
File online

The forms are not difficult to complete, and the process is intuitive, with online help available at every step. But it does take time. That’s why we urge you to get started on your BOI report now without further delay. If you have any questions or require assistance with you BOI filing, we recommend consulting with your legal counsel.