BOIR Update

Last Update: 7 January, 2025

This article provides important information about the Beneficial Ownership Information Reporting (BOIR) requirements, who needs to file, and the implications of a recent court order staying enforcement of the rule.  Be sure to read the entire article for a scam alert!

What is BOIR?

The Beneficial Ownership Information Reporting (BOIR) rule, mandated by the Corporate Transparency Act (CTA), requires certain entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This measure aims to enhance transparency and combat financial crimes like money laundering and tax evasion.

Who Needs to File a BOIR?

BOIR applies to many small businesses, including certain private practices and solo practitioners organized as corporations or LLCs. Generally, entities that meet the following criteria must file:

1. Existence: Formed by filing with a state (e.g., LLCs, corporations).
2. Inactivity Exclusion: Active entities are required; inactive or dissolved entities may be exempt.
3. Exemptions: Larger companies meeting specific criteria (e.g., revenue, workforce size) and certain professional services firms are excluded.

To confirm your status, refer to the FinCEN BOIR Small Entity Compliance Guide.

Impact of the Recent Court Order

A recent court order has stayed enforcement of BOIR requirements, temporarily halting the need to comply with the December 31, 2024, filing deadline. This stay means:

• No Immediate Filing Required: Until further notice, enforcement is paused, and non-compliance penalties will not apply.
• Monitor Updates: Businesses should remain informed, as the stay may be lifted, reinstating the deadline.

For details about the stay, you can review this court order overview.

Action Steps

• Stay Informed: Continue monitoring updates from FinCEN and legal developments regarding BOIR requirements.
• Evaluate Your Obligation: Use FinCEN’s compliance resources to determine if your practice falls under BOIR requirements.
• Prepare for Future Filing or Go Ahead and File: While the stay is in place, consider organizing beneficial ownership information in case the deadline is reinstated. You might even just go ahead and file.  It is a very simple process typically taking less than 10 minutes.

For additional guidance, consult FinCEN’s or the .

Scam Alert

It’s important to note that it costs nothing to file a BOIR and takes less than 10 minutes of your time. I’ve heard from numerous businesses that they’ve received marketing materials expressing the urgency and complexity of this filing along with an offer to handle the filing for hundreds of dollars.  Save your business the money and, if and when you file, have an admin or yourself handle it! It really is straightforward and fast!

Need help navigating business, compliance, technology, or ethics challenges?
I’m here and available for your business, tech, and ethics consultation needs.