Time is running short for businesses to file their Beneficial Ownership Information reports with the U.S. Treasury Department. The deadline for filing the BOI report is December 31, 2024, for companies that were created before January 1, 2024.

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IMPORTANT NOTE: Certain businesses affected by recent hurricanes will have an extra six months to submit BOI reports, including updates or corrections to previous reports, the Financial Crimes Enforcement Network (FinCEN) announced on October 29, 2024. The extensions affect certain victims of hurricanes Beryl, Debby, Francine, Helene, and Milton, FinCEN said.

If you own a business in one of the affected areas or if you need to access records that are kept in one of the affected areas, you may be eligible for the deadline extension. Further information about the extension dates related to each storm are available on the FinCEN website.

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Read more about the background and detailed requirements of BOI reporting here.

For the most part, companies need to comply with the BOI reporting requirement – which was enacted as part of the Corporate Transparency Act in an effort to reduce money laundering – if they have fewer than 20 employees and take in less than $5 million in gross receipts annually. Hence, the BOI reporting requirement falls mainly on small businesses. However, 23 types of entities are exempt from the BOI reporting requirement.

Who must report?

• If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.
• If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
• If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.

The BOI report is a one-time report and does not have to be repeated annually. Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

The BOI report is filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Information about e-filing a BOI report can be found here.

A legal challenge resulted in a federal court ruling in Alabama last spring that the BOI reporting requirement is unconstitutional. However, the ruling applies only to a small number of businesses that are members of the plaintiff organization, the National Small Business Association. The Treasury Department’s appeal is still pending. While the legal challenge is winding its way through the system, BOI reporting requirements remain in force for approximately 32 million small businesses nationwide.

If you have not yet filed a BOI report and have questions about the process, contact your business attorney.