Current Status of BOIR Filing Requirements

The hotly contested Corporate Transparency Act (the “CTA”) aims to combat illicit financial activities and promote transparency for businesses. However, legal challenges, including by Texas Top Cop Shop, Inc., have led to temporary halts in its enforcement, specifically pausing the Beneficial Ownership Information Reporting (“BOIR”) requirements mandated under the CTA. Subject to certain exceptions, the BOIR requirements apply to most corporations, limited liability companies (LLCs), and other similar entities created or registered to do business in the United States.

Key Takeaways for Business Owners

As of January 2, 2025, the status of the BOIR requirements is as follows:

• No Immediate Filing Obligation: Reporting companies are not required to file BOI reports with FinCEN due to a preliminary injunction issued in Texas Top Cop Shop, Inc., et al. v. Garland, et al., pending further developments.
• Voluntary Submissions Allowed: While not required, reporting companies may still voluntarily submit BOI reports.

This guidance, coming directly from FinCEN, remains in effect while the preliminary injunction remains effective.

What Should Businesses Do?

1. Stay Informed: Monitor updates from FinCEN as litigation progresses.
2. Prepare for Compliance: If you have not yet filed BOI reports, consider organizing your ownership information in case the requirements are reinstated.
3. Consult Legal Counsel: Speak to your lawyer for tailored advice on how these developments affect your obligations under the CTA.