Dec 23, 2024
Corporate Transparency Act Back in Force: Important BOIR Filing Deadline for Non-Resident Business Owners
The Corporate Transparency Act (CTA) has been a topic of much discussion and uncertainty over the past year, particularly for non-resident business owners with interests in U.S. companies. We've been closely monitoring the situation and have important news: the temporary injunction that paused Beneficial Ownership Information Reporting (BOIR) is no longer in effect. This means that filing obligations are once again active, and time is of the essence.
The Latest Update:
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a stay on the injunction that had previously suspended the CTA's filing requirements. This order came as a result of the government’s appeal in Texas Top Cop Shop, Inc. v. Garland. Consequently, the Corporate Transparency Act and its related filing requirements are now back in full force.
What Does this Mean for You?
If you own or have a controlling interest in a U.S. company, and especially if your company was created before January 1, 2024, it's crucial to act now!
Here are the key takeaways:
BOIR Filing is a MUST: The previously suspended requirement to report your Beneficial Ownership Information is now active.
Critical Deadline: The deadline for most established companies to file their BOI reports is January 1, 2025. If your company was formed after January 1, 2024, the deadlines are 90 days from formation in 2024 and 30 days from formation for 2025 companies.
No Further Extensions Expected: Do not expect further delays or relief from this reporting requirement before the upcoming deadlines.
Enforcement is Back: Penalties, both civil and criminal, are back in play for failing to comply with these regulations.
Why is this important and what should I do?
Beneficial Ownership Information Reporting is designed to enhance transparency in company ownership and prevent illegal financial activities. For non-resident business owners, this means taking proactive steps to understand the filings and ensure compliance to avoid penalties that can be severe.
Here’s what you need to do now:
Determine if your business is a "Reporting Company": Most businesses formed with a state’s Secretary of State will need to file a BOIR.
Gather Your Information: Collect all the necessary details about your company and its beneficial owners. (This typically includes name, birth dates, passport/ID information and addresses.)
File ASAP: Do not wait until the last minute to file. The FinCEN website might experience heavy traffic as the deadline approaches.
File through the Official Portal: The authorized BOI reporting system is through the FinCEN website, and there are no fees for filing. Beware of scams and fees from non-authorized third parties who are targeting people who may be confused about this filing requirement.
What if I am uncertain about my compliance?
We understand that the CTA and its requirements can add complexity for non-resident business owners. At nonresident.tax, we are committed to assisting our clients in navigating these regulations with accuracy and speed. We can help you:
Determine if your company is subject to BOIR requirements.
Gather the necessary beneficial ownership information.
File the necessary BOIR reports through the FinCEN portal on time.
Don't Delay - Time is of the Essence!
With the deadline rapidly approaching, it is important to act quickly. Don’t worry too much, there were only a small number of businesses that actually filed the required report during the prior filing period before the Court’s stay was issued. This means that, while many business owners have delayed, the vast majority of businesses that need to file the report are in a similar position. By taking prompt action, you can ensure that your business remains compliant.
Contact Us Today:
We urge you to reach out now to take proactive steps toward compliance. If you have any questions about how the CTA might affect your company, don't hesitate to contact us today for a consultation.
The Corporate Transparency Act (CTA) has been a topic of much discussion and uncertainty over the past year, particularly for non-resident business owners with interests in U.S. companies. We've been closely monitoring the situation and have important news: the temporary injunction that paused Beneficial Ownership Information Reporting (BOIR) is no longer in effect. This means that filing obligations are once again active, and time is of the essence.
The Latest Update:
On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a stay on the injunction that had previously suspended the CTA's filing requirements. This order came as a result of the government’s appeal in Texas Top Cop Shop, Inc. v. Garland. Consequently, the Corporate Transparency Act and its related filing requirements are now back in full force.
What Does this Mean for You?
If you own or have a controlling interest in a U.S. company, and especially if your company was created before January 1, 2024, it's crucial to act now!
Here are the key takeaways:
BOIR Filing is a MUST: The previously suspended requirement to report your Beneficial Ownership Information is now active.
Critical Deadline: The deadline for most established companies to file their BOI reports is January 1, 2025. If your company was formed after January 1, 2024, the deadlines are 90 days from formation in 2024 and 30 days from formation for 2025 companies.
No Further Extensions Expected: Do not expect further delays or relief from this reporting requirement before the upcoming deadlines.
Enforcement is Back: Penalties, both civil and criminal, are back in play for failing to comply with these regulations.
Why is this important and what should I do?
Beneficial Ownership Information Reporting is designed to enhance transparency in company ownership and prevent illegal financial activities. For non-resident business owners, this means taking proactive steps to understand the filings and ensure compliance to avoid penalties that can be severe.
Here’s what you need to do now:
Determine if your business is a "Reporting Company": Most businesses formed with a state’s Secretary of State will need to file a BOIR.
Gather Your Information: Collect all the necessary details about your company and its beneficial owners. (This typically includes name, birth dates, passport/ID information and addresses.)
File ASAP: Do not wait until the last minute to file. The FinCEN website might experience heavy traffic as the deadline approaches.
File through the Official Portal: The authorized BOI reporting system is through the FinCEN website, and there are no fees for filing. Beware of scams and fees from non-authorized third parties who are targeting people who may be confused about this filing requirement.
What if I am uncertain about my compliance?
We understand that the CTA and its requirements can add complexity for non-resident business owners. At nonresident.tax, we are committed to assisting our clients in navigating these regulations with accuracy and speed. We can help you:
Determine if your company is subject to BOIR requirements.
Gather the necessary beneficial ownership information.
File the necessary BOIR reports through the FinCEN portal on time.
Don't Delay - Time is of the Essence!
With the deadline rapidly approaching, it is important to act quickly. Don’t worry too much, there were only a small number of businesses that actually filed the required report during the prior filing period before the Court’s stay was issued. This means that, while many business owners have delayed, the vast majority of businesses that need to file the report are in a similar position. By taking prompt action, you can ensure that your business remains compliant.
Contact Us Today:
We urge you to reach out now to take proactive steps toward compliance. If you have any questions about how the CTA might affect your company, don't hesitate to contact us today for a consultation.
Take the Next Step in Your U.S. Business Journey
Whether you're just starting out or looking to streamline your existing U.S. operations, we're here to help you succeed. Join thousands of satisfied nonresident entrepreneurs who trust us with their U.S. business compliance.
Take the Next Step in Your U.S. Business Journey
Whether you're just starting out or looking to streamline your existing U.S. operations, we're here to help you succeed. Join thousands of satisfied nonresident entrepreneurs who trust us with their U.S. business compliance.
Take the Next Step in Your U.S. Business Journey
Whether you're just starting out or looking to streamline your existing U.S. operations, we're here to help you succeed. Join thousands of satisfied nonresident entrepreneurs who trust us with their U.S. business compliance.