The Corporate Transparency Act (CTA) requires all LLCs to file Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN). This filing must be completed by December 31, 2024, for LLCs started prior to 2024, and within 90 days from formation for any LLC set up after 2024.
Based on these requirements, Nichols & Company has been filing BOI reports for clients that requested this service.
There has been a lot of discussion about the pros and cons of the CTA, but until recently it was just discussion.
However, on December 4, 2024, a Texas Court issued a nationwide injunction, stating that reporting companies do not need to comply with the “January 1, 2025” deadline. Click here for more details.
Will the injunction hold up? This of course is unknown.
What do we think?
When we first learned about the CTA in late 2023, it was presented to us as unnecessary red tape that would cause, at a minimum, an undue burden on small businesses, but also as “Orwellian control” from the government as an extreme view.
As we have learned about the process, however, we no longer share this view. It makes sense that a legal entity would be linked with a responsible individual, and we can accomplish what the FinCEN requires without overstepping any bound, causing excess red tape, or infringing on anyone’s civil liberties.
Do the courts share this opinion? That is yet to be seen. What will happen if our clients decide to wait for the injunction to play out before filing? Will the fines still be imposed or waived? They might be, but no one really knows.
We encourage our clients to complete their BOI filing requirement.* Here is a link with directions if you prefer to self-file. Otherwise, we are happy to handle your filing for you. If you need assistance with this process, please reach out to us as soon as possible. Our fee is $495 for businesses with 1-4 owners.