As of December 2024, BOI Reports for LLCs and Corporations are no longer required.
A federal court in Texas granted an injunction against the Corporate Transparency Act, essentially stopping the BOI Report in its tracks.
The December 31, 2024 deadline is gone.
BOI filings are now optional.
And there is no penalty for not filing the BOI Report.
Thank goodness! I’ve thought the Corporate Transparency Act was B.S. since the day it came out. LLCs are already complicated enough for small business owners. And they don’t need another report to file.
Federal Court issues injunction against the Corporate Transparency Act (blocks BOI requirements nationwide)
On December 3, 2024, a federal court in Texas blocked FinCEN’s ability to enforce the Corporate Transparency Act (CTA) by granting an injunction.
The court decided that the CTA likely exceeds Congress’s authority, and that complying with the CTA would burden businesses.
This means that until the court says otherwise, business owners aren’t required to file Beneficial Ownership Information Reports.
And business owners can’t be penalized for not filing while the injunction remains in place.
Additionally, on December 5, 2024 FinCEN posted a notice on their website acknowledging the injunction, and stating that they will fully cooperate with the Order:
If you’d like to read the full Court Order, you can find it here:
Texas Top Cop Shop, Inc., et al. v. Garland, et al.
Does this mean that the CTA and BOI are gone forever?
No, they aren’t necessarily gone forever.
But for now, the CTA and BOI have effectively been put on “pause”.
Which means, FinCEN:
- can’t require that business owners file the BOI report, and
- can’t penalize business owners for not filing (while the Court Order remains in place).
However, the Department of Justice (DOJ) filed an appeal on December 5, 2024 (trying to cancel the injunction).
If the court of appeals rules in favor of FinCEN, then the BOI reporting requirements may be reinstated.
If that happens, then business owners will again be required to comply with the CTA and BOI reporting requirements.
However, with Trump taking office in January 2025, things may change.
How could the Trump Administration affect this case?
Some speculate that the Trump Administration may eliminate the Corporate Transparency Act and BOI reporting requirements altogether.
Specifically, the Department of Justice (DOJ) under Trump might drop the appeal, and instead, let the Court Order stand.
What if I already filed my BOI Report?
If you’ve already filed, there’s nothing you need to do or worry about.
The records will be kept by FinCEN. And unfortunately, there isn’t a way to un-file your BOI Report at this time.
References
FinCEN: Beneficial Ownership Information
FinCEN: Beneficial Ownership Information FAQs
Journal of Accountancy: Court Halts BOI Reporting; AICPA Urges Preparedness
Bloomberg Law: Corporate Transparency Act Blocked Nationwide by Texas Court
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
