Beneficial Ownership Information (Corporate Transparency Act (CTA)- 2025 Updates

A federal court reinstated the Corporate Transparency Act (CTA), requiring most small businesses to file a Beneficial Ownership Information (BOI) report by March 21, 2025, though FinCEN may modify this deadline. Companies with later deadlines, such as those granted disaster-relief extensions, should follow their original timeline. Filing is free at FinCEN.gov/boi, and only incorporated small businesses with fewer than 20 employees need to report. Congress is considering two bills—one to delay BOI reporting until 2026 and another to repeal the CTA entirely, though only the delay bill has bipartisan support. The Fifth Circuit Court of Appeals will hear arguments on the CTA’s legality on April 1, 2025, potentially leading to further changes.

BOI Reporting – Key Details

Deadline: March 21, 2025 (or later if applicable, e.g., disaster relief extensions).

One-Time Filing: Not an annual requirement, but updates/corrections must be filed if needed.

Who Must File? Corporations, LLCs, and similar entities formed or registered in the U.S. Filing Requirements:

• Company Details: Name, address, EIN/TIN.

• Beneficial Owners (25%+ ownership/control): Name, DOB, residential address, ID (Driver’s license or passport).

• Company Applicants (for businesses created after Jan 1, 2024): Same details as owners.

• Update & Correction Rule: Any changes (e.g., new owners, address change) must be reported within 30 days.

• Penalties for Non-Compliance:

• $500 per day for late or false reports.

• Fines up to $10,000 and/or 2 years in prison for willful violations.

• Exempt Entities: Public companies, nonprofits, banks, and large businesses (20+ employees, $5M+ revenue, U.S. office).

Please reach out if you need us to file this report at contact@2cherrytax.com