FINCEN BOI Filing Requirements

The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Treasury Department, had introduced new filing requirements under the Corporate Transparency Act (CTA). This would require all U.S. corporations, including LLCs, to disclose detailed background information about individuals with at least 25% ownership interest.

These Beneficial Ownership Interest (BOI) filings were supposed to be mandatory starting January 1, 2025, but were later postponed to January 13, 2025.

However, after multiple federal court challenges, FinCEN's BOI filing requirements and related penalties (which could amount to $500 per day for late filings) are currently on hold. A recent federal court order has suspended the mandatory filing requirement, and reporting companies are not required to file BOI information while the order remains in force. The court decision is likely to lead to further proceedings, including possible involvement from the U.S. Supreme Court.

While reporting companies are not required to file the information during this period, they can still voluntarily submit reports if they choose. FinCEN has updated its alert to reflect this status change, which can be accessed on their website: https://fincen.gov/

‍