BOI Gets a Little Pushback – You are Not Off the Hook
Last week, a Federal Court in Alabama ruled that the BOI reporting requirements are unconstitutional. The Court said that this requirement “exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress’ policy goals…” In English, it means that Congress does not have the power to impose this requirement. However, in case you thought you don’t have to file, think again. It only applies to the plaintiffs in that case and possibly reporting companies in the Northern District of Alabama. So, if you think you are now off the hook for BOI reporting, think again. BOI reporting still applies.
Below is a recap of our update from the beginning of the year.
FinCen has a new reporting requirements for entities. The report submission site is active and new updates have been provided. Here are three key things to look at:
Are you subject to the filing requirements (i.e., are you a reporting company)?
- The answer here is a bit in depth. However, here is the link to the relevant section of the FAQ.
If I am a reporting company, when do I have to file?
- A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
- A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
- A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
Where do I file this information?
We also put together a quick memo for you to reference. If you have any questions about this topic, please make sure you reach out to your professional business advisors for assistance (business attorney, business accountant, business financial advisor, etc.).
As always, please reach out to your professional business advisors (business attorney, business accountant, etc.) for questions.
Here are a few other items of interest:
- 6 Critically Important Aspects of Due Diligence (thenybbgroup.com)
- 7 Important Questions to Ask Yourself When Selling a Business (thenybbgroup.com)
- NFIB’s Top 10 Small Business Policy Priorities for 2024
- Webinar | Borderless Workforce: Unraveling State Wages and Reporting for Travelers (stambaughness.com) (03/19/24 @ 2pm)
As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments. Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.