It’s part of our mission to not just provide US small businesses with a simpler way to file their Beneficial Ownership Information Reports, but also to simplify any information that may impact your reporting.
While January & February were quiet in terms of BOIR & Corporate Transparency Act (CTA) news, a lot has been happening in March thus far.
It boils down to this:
Last week, an Alabama federal judge sided with a complaint filed by the National Small Business Association (NSBA) back in 2022 stating that the Corporate Transparency Act (signed into law in 2021, enforced as of January 1, 2024) was unconstitutional.
In a brief response the day of the judgment, FinCEN posted a memo that they are cooperating, and thus “not currently enforcing the Corporate Transparency Act against the plaintiffs (Isaac Winkles and the members of the National Small Business Association).
The only businesses who don’t need to file a BOIR are:
The 65,000 members of the National Small Business Association do not currently have to file a BOIR. If you are a member of this association, and became a member before March 1, 2024, we recommend keeping a close eye on the latest news to ensure your staying compliant with the latest regulations. Depending on the outcome, NSBA members may still be required to file a BOIR by the end of the year.
You are still required to file a BOIR. The case ruling only affects the plaintiffs named: Mr. Winkles and the National Small Business Association and its members. Specifically, those who were members of the NSBA prior to the March 1 ruling.
Forbes is reporting that some accounting and law firms are making their own announcements about this legal case that is misleading their clients to believe they don’t have to file anymore.
The American Institute of Certified Public Accountants, in a statement to the Journal of Accountancy, stated:
“The AICPA said that small businesses should continue to file BOI reports. The statement also said that the AICPA continues to push for suspension of the BOI reporting rule.”
Our CEO and Co-Founder (Martin!) is a practicing accountant and firm owner, so we feel strongly and know personally that some small business owners turn to their trusted advisors to help understand compliance matters such as this. Accountants have a responsibility to assist to the best of their abilities when their clients ask for BOIR information. While accounting firms don’t need to offer BOIR filing as a service, they should stay up-to-date on the latest CTA information.
Help us spread the word and clarify: as it stands, most small business owners across the USA still need to file their BOIR. For new businesses registered this year, the deadline to file BOIR is within 90 days of registration. For businesses registered before 2024, the deadline to file their BOIR is the end of 2024.
Continue to pat yourselves on the back for being some of the early filers.
It’s been reported that 700,000 business owners across the country filed in January and February – that means an estimated 31M still need to file this year. By crossing this off your list early, you’ve ensured your business remains compliant, and don’t need to worry about forgetting to do this one other thing. (Unless, of course, your beneficial owners information changes, don’t forget to update your information.)
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We created OwnerFile to make the lives of Business Owners easier. Part of this responsibility is to keep you up to date on information that may impact your BOIR filings. So rest assured we’ll keep watching how this plays out and keep you posted along the way.
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