Today, the 5th Circuit Court of Appeals stayed the previous ruling putting a nationwide injunction against the Corporate Transparency Act’s (CTA) Beneficial Ownership Information (BOI) reporting. This ruling can be appealed by the plaintiffs to the Supreme Court, but it’s probable the Court would not hear such a case (instead, waiting for the case to be actually ruled)–but I’m definitely not a Supreme Court expert. UPDATE: This may also be appealed to the entire 5th Circuit (an en banc appeal), and this has a far higher likelihood of both happening and being successful. So there may be an additional update later this week.
What does this mean?
- If you had an entity in existence as of January 1, 2024, you likely need to file a BOI report on or before January 1, 2025.
- If you formed an entity during 2024, you likely have 90 days to file a BOI report (from date you received acknowledgment from the Secretary of State).
- If you form an entity in 2025, you have 30 days from date of formation to file a BOI report.
A few clients reached out to us to file their BOI returns on their behalf; I will be sending them emails about this later today or tomorrow morning.