Navigating the Corporate Tr... | Lippes Mathias LLP

Navigating the Corporate Transparency Act: Essential Deadlines for Business Entities

By Christian M. Lovelace, Brendan J. Rich

October 25, 2024 | Corporate Blog

Pursuant to the enactment of the Corporate Transparency Act (CTA), many companies are required to report information to the Financial Crimes Enforcement Network (FinCEN) about the individuals who ultimately own or control them. FinCEN began accepting such reports on January 1, 2024, but recently noted that there are still millions of active entities yet to file before the deadline.

The deadline to file for entities formed before 2024 is fast approaching (December 31, 2024). The deadline for entities formed in 2024 remains at 90 days after formation. This timeline gets reduced in 2025 with the deadline to file your Beneficial Ownership Information Report (BOIR) 30 days after formation/registration in the U.S.

It is important to keep in mind that any changes to an entity’s beneficial ownership must be reported in the form of an updated report no later than 30 days after the change.

The CTA has been challenged a total of six times since its enactment. In the first challenge to the legislation, a district court judge in Alabama ruled that that the CTA was unconstitutional and that the plaintiffs in this case (and this case alone) were exempt from complying. Oral arguments in the appeal to this judgement commenced on September 27, 2024, but no determination is expected this side of the New Year.

Lippes Mathias continues to monitor the developing situation. Should you have any questions on whether your entity is required to file and/or need any assistance with filing, email our dedicated team at boi@lippes.com.

Read our previously published articles on Beneficial Ownership Information reporting:

Research and contributions for this alert were made by Deirdre O'Connell (Paralegal, Corporate Team) and reviewed by Christian M. Lovelace (Partner, Franchising & Licensing Team Leader, Asset Receivable Management Team Leader) and Brendan J. Rich (Partner, Corporate Team Leader).

Disclaimer: The information in this post is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from our firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

Related Team

Christian M. Lovelace
Partner | Team Leader - Franchising & Licensing; Team Leader - Asset Receivable Management

Brendan J. Rich
Partner | Team Leader - Corporate | Team Leader - Mergers & Acquisitions