With the passage of the Corporate Transparency Act (CTA), there are a ton of questions. Most companies must file a Beneficial Owner Information Report (BOIR). Here are some of the main points:
When do I need to file my BOIR?
For companies formed prior to 1/1/2024, the deadline for filing the BOIR is 12/31/24. As of 1/1/24, new companies must file the BOIR within 90 days of company creation or registration. As of 1/1/25, new companies must file the BOIR within 30 days of company creation or registration.
Where do I file the BOIR?
If you want to prepare and file the BOIR, you can select your filing method here.
Am I able to get help with filing my BOIR?
Feel free to reach out to us – we can provide guidance and assistance with your BOIR filing.
Are non-profits required to file a BOIR?
If you have received a 501(C)(3) tax exemption from the IRS, you are not required to file. If that status is revoked, or if your entity is created but has not been approved as a 501(C)(3) by the IRS, you may still need to file your BOIR.
Are there exemptions from the need to file a BOIR?
Yes, there are exemptions from the need to file. In addition to the tax-exempt entities discussed above, here are a few of the more significant exemptions:
- Large operating companies
- More than twenty full time employees
- Over $5 million in revenue for the previous year
- With a physical operating presence in the US
- Wholly owned subsidiaries of some exempt entities
- Some inactive businesses
- Accounting firms
- Banks, credit unions, and depository holding companies
- Broker or dealers in securities
- Investment companies and advisors
- Insurance companies
Conclusion
Despite several pieces of litigation seeking to challenge the CTA, for the time being this act remains in place. As such, you need to take steps for compliance or run the risk of substantial civil and criminal penalties.
If you have questions about the CTA’s requirements or just want to ensure your business is on the right track, please feel free to reach out to Timothy Hughes at Bean, Kinney & Korman, P.C. at (703) 526-5582 or thughes@beankinney.com. Our firm practices in Virginia, Maryland, and the District of Columbia in addition to various other jurisdictions and can help you through this process.
This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.