After a revolving door of court approvals and halts, the Corporate Transparency Act (CTA), requiring businesses to file a Beneficial Ownership Information (BOI) report identifying their key stakeholders and executives, is now mandatory, effective immediately.
With the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas, BOI reporting requirements under the CTA are once again back in effect.
However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, the deadline for most companies to submit the report has been extended to March 21, 2025.
Businesses formed or registered beginning February 18, 2025, must file within 30 days from the date of creation or registration.
More information on which businesses are required to file, who is considered a beneficial owner, and what should be included in the report can be found here.
To remind, willful failure to provide accurate and timely information may result in both civil and criminal penalties, including a maximum civil penalty of $500 per day (up to $10,000) and imprisonment for up to two years.
The on-again/off-again history of the CTA can be found here.
For any questions or assistance, contact us.
Katherin Valdez-Lazo is an associate in Vishnick McGovern Milizio LLP’s Business and Transactional Law practice group, including the Mergers and Acquisitions and Commercial Real Estate practices. She can be reached at kvaldez-lazo@vmmlegal.com and 516.437.4385 x143.
