Beneficial Ownership Reporting Mandate Reinstated
On February 18, 2025 the FinCEN announced that the beneficial ownership information (BOI) filing mandate has officially been reinstated. The reinstatement was triggered by the U.S. District Court for the Eastern District of Texas’s decision to lift the initial injunction.
The new filing deadline has been set to March 21, 2025 for existing entities formed prior to 2025, while entities formed in 2025 must file by the later of March 21, 2025 or 30 days from the date of formation.
The FinCEN has indicated that during the next 30 days it will “assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce the burden for lower-risk entities, including many U.S. small businesses.”
As a reminder, this filing requirement applies to all Corporations, LLCs, LPs, LLPs, Business Trusts, and other entities formed or registered in the U.S. unless the entity is able to satisfy all of the following criteria:
- More than 20 full-time employees in the US;
- Operating within the US at a physical office owned or leased by the reporting entity and not shared except with affiliates; and
- More than $5 million in gross receipts or sales, excluding gross receipts or sales from sources outside the US.
Failure to comply with reporting requirements will be met with significant penalties; therefore, it is imperative for you to begin collecting the information required. Please reach out to your attorney or DKC representative if you have any questions.
