If you’ve been following the buzz around “BOI reporting” and have heard different status reports every other day, you're not crazy and you’re in the right place. The rules around Beneficial Ownership Information (BOI) reporting—part of the Corporate Transparency Act (CTA)—have been on a wild ride the past few weeks. Here are the latest updates.
A Brief Recap
The CTA, enacted in 2021, aims to enhance transparency by requiring many U.S. businesses to report information about their beneficial owners—individuals who own or control at least 25% of the company or exercise substantial control—to the Financial Crimes Enforcement Network (FinCEN). Initially, companies formed before January 1, 2024, faced a filing deadline of January 1, 2025. However, ongoing litigation and regulatory adjustments have kept this requirement in flux.
The Latest Twists and Turns
This story’s had more plot twists than a soap opera. Originally, businesses formed before 2024 had until January 1, 2025, to file their BOI details—names, birthdays, ID numbers of owners, etc. Then, a court injunction hit pause on everything. Fast forward to February 18, 2025: a Texas court lifted that pause, and FinCEN set a new deadline of March 21, 2025.
Not so fast. On March 2, the U.S. Treasury announced that it would enforce no penalties or fines for U.S. citizens or domestic businesses missing deadlines—for now. They’re working on a new rule (due by March 21) that might only make foreign companies report, leaving most American small businesses off the hook. So, if you’re running a local bakery or freelance gig, you will likely be exempt from future reporting requirements.
What Does This Mean for You?
If you own a small business, here is where things stand:
No Fines Yet: Skip the March 21 deadline? No big deal—fines (which could have been $591 per day) are on hold for U.S.-based business owners, UNLESS your business was started after February 19, 2025 (in which case you are still required to report...for now).
Wait and See: New rules are coming, with possible changes. As mentioned above, businesses started after February 19, 2025 still have 30 days to file, but that might shift.
Possible Free Pass: If the Treasury’s plan sticks, only foreign-linked companies may need to report moving forward.
Right now, United States business owners currently operate under an administration very averse to the CTA and its implications. Consequently, it is likely that reporting requirements have endured their final blow and, if resurrected, will be very limited. On March 3, President Trump announced excitedly that enforcement of BOI reporting had been suspended, calling the "Biden rule" "outrageous and invasive," promising Americans that "[t]he economic menace of BOI reporting will soon be no more."
So, What Should You Do?
Right now, not much. Though business owners still have the option to file, it is likely that most, if not all, domestic businesses will remain exempt, and it would likely benefit business owners to wait for further clarification these upcoming weeks. Please continue to visit FinCEN and keep an eye out for further information. We will continue to provide updates as they become available.
The Bottom Line
Though these past few months have been back-and-forth on reporting requirements, BOI reporting seems to have been dealt its final blow for now, and businesses can breathe a sigh of relief. Please continue to watch for additional updates, especially as the March 21 deadline approaches.
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