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In this video, Matt Sorensen, breaks down the latest developments regarding the Beneficial Ownership Information (BOI) filing requirement under the Corporate Transparency Act (CTA). The U.S. Supreme Court recently lifted an injunction in one case (Texas Top Cop Shop), but another injunction (Smith v. Department of Treasury) is still in place, preventing the federal government from requiring BOI filings at this time. Sorensen clarifies the legal landscape, dispels misinformation, and discusses potential actions from the Trump administration and Congress regarding the BOI rule.

FAQ

1. What is the BOI filing requirement?

The BOI (Beneficial Ownership Information) report is a new federal filing requirement for LLCs and corporations under the Corporate Transparency Act (CTA). Businesses must disclose ownership details, including individuals who own 25% or more or have substantial control over the company.

2. What did the U.S. Supreme Court decide?

The Supreme Court did not rule on the constitutionality of the BOI filing requirement. Instead, it lifted an injunction in the Texas Top Cop Shop case, which had temporarily stopped BOI enforcement. However, another injunction in Smith v. Department of Treasury still prevents the government from requiring BOI filings at this time.

3. Do I need to file a BOI right now?

No. As of January 24, 2025, BOI filing is voluntary due to the injunction in the Smith case. FinCEN (Financial Crimes Enforcement Network) has confirmed that they cannot require businesses to file at this time.

4. Will I have to file a BOI in the future?

Possibly. The Smith case is still in litigation, and there are multiple federal cases pending that could impact the requirement. Additionally, Congress is considering legislation (the Repealing Big Brother Act) that could eliminate the BOI rule. The Trump administration may also take executive action to suspend or modify the requirement.

5. What happens if I already filed my BOI?

If you have already filed, your submission remains valid. However, no further action is required unless the legal situation changes.

6. What information is required on the BOI report?

If filing voluntarily, businesses must provide:
✅ Company name and EIN (Employer Identification Number)
✅ State of incorporation
✅ Owner(s) with 25%+ ownership or substantial control
✅ Owner’s name, date of birth, address
✅ Government-issued photo ID (e.g., driver’s license or passport)

7. How long do new businesses have to file a BOI?

Before the injunction, deadlines were:

• For businesses formed before 2024: File by January 1, 2025
• For businesses formed in 2024: File within 90 days
• For businesses formed in 2025 and beyond: File within 30 days

Since enforcement is currently paused, there is no legal deadline at this moment.

8. Where can I check for updates?

✅ FinCEN's official website: fincen.gov
✅ Main Street Business Services – We provide ongoing compliance updates and filing support for business owners.

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