Corporate Transparency Act: What Every Small Business Needs to Know
By Laura Watts
UPDATE: We are closely monitoring the ongoing developments with FinCEN and Treasury filings related to the Corporate Transparency Act. As regulations continue to evolve, we remain committed to staying ahead of compliance requirements and ensuring our processes align with the latest mandates. Our team will provide updates when definitive rules are clearly established.
If you own a business, you have likely received notice from your Secretary of State’s office or CPA informing you of your requirement to file a beneficial ownership information (“BOI”) report with the United States Department of the Treasury’s Financial Crime’s Enforcement Network (“FinCEN”) in compliance with The Corporate Transparency Act enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act.
Many of our Myatt & Bell business clients have reached out with questions and concerns. The last few months of 2024 caused further confusion as legal challenges to the law made their way through various courts. To illustrate, and in late December 2024, a nationwide injunction was issued preventing the government’s enforcement of the law. Then on February 17, 2025, the District Court for the Eastern District of Texas Tyler Division issued an Order lifting the nationwide injunction. As of February 18, 2025, every reporting company has the duty to file its BOI report if it hasn’t already done so.
So, what is this filing requirement all about?
First, it is important to highlight that this is a federal law. Accordingly, the annual report that your business files with the state is not sufficient to meet this new mandatory federal requirement.
The Financial Crime’s Enforcement Network’s (“FinCEN”) primary mission is to safeguard the financial system from illicit use. The Corporate Transparency Act’s (“CTA”) reforms are intended to crack down on money laundering and other related illegal activities like terrorist financing, corruption, and tax fraud even though any individuals form businesses to hold things such as a title to property, but do not otherwise carry-on significant business operations. These are often referred to as “shell companies.” Most shell companies are formed for legitimate purposes, and historically, the requirements to disclose the companies’ members have been lax, allowing the owners to remain anonymous. The CTA’s reforms now require better disclosure of business owners to prevent bad actors from using shell companies in furtherance of various crimes. In other words, the federal government wants to know who you are, that you’re running a legal business, and that you are paying your taxes.
While there is no fee to file a beneficial ownership (“BOI”) report the fine for failing to comply is a civil penalty of up to $500 per day. Consequently, this is not something you should ignore. Originally the law established that businesses started after January 1, 2024, were required to submit the BOI report to FinCEN within 90 days of their formation. Businesses formed prior to January 1, 2024, had until January 1, 2025, to complete this filing. Businesses formed after January 1, 2025, are required to submit the BOI report to FinCEN within 30 days of their formation. In light of the confusion brought on by the recent legal challenges, the Department of Treasury decided to extend the deadline by thirty (30) calendar days from February 19, 2025, for most companies. The new deadline to file an initial, updated, and or corrected BOI report is now March 21, 2025.
If you are saying, “Gee, I just don’t have time to deal with all of that,” we have good news for you; Myatt & Bell has you covered.
We will file the BOIR on behalf of your company, or companies, starting at $400 for the first business and $75 for each additional business.*
Get Help Today
Our team is ready to assist you. To get started:
- Existing Registered Agent Clients – please click here.
- All Other Business Clients – please click here.
* Additional fees may apply for businesses with more complicated ownership structures.
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