The beneficial ownership reporting rule would require businesses with 20 or fewer full-time employees to register all beneficial owners. The new beneficial ownership information reporting law would have required business owners to register personal information in a federal database through the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by January 13, 2025. Failure to register would have resulted in criminal penalties of up to 2 years in prison and civil penalties of $500 per day, up to $10,000.
So what's the latest in the courts?
On December 26, 2024, a federal appeals court reversed the previous decision and put reporting requirements on indefinite hold while the courts consider NFIB's lawsuit, which means businesses are not required to comply with the BOI reporting requirements.
Is BOI reporting dead or alive?
As of December 26, 2024, small business owners are not required to file beneficial ownership information. The Department of Justice can appeal the decision, and this case could go all the way to the Supreme Court. Keep up to date at NFIB.com/ProtectPrivacy.
The court reinstated a nationwide injunction, which means that the rule is on indefinite hold and the government can’t enforce it against any individual or business in any state. So, for now, if you haven’t filed the form, you can hold off — but don’t ignore it entirely. There’s a chance that the courts could again lift the hold. As before, it’s a good idea to prepare beneficial ownership information just in case.
What else can businesses do?
With the future of this rule in the hands of the courts, now is the time to keep the pressure on Congress to fully repeal the beneficial ownership reporting. Send them a message below!
So what's the latest in the courts?
On December 26, 2024, a federal appeals court reversed the previous decision and put reporting requirements on indefinite hold while the courts consider NFIB's lawsuit, which means businesses are not required to comply with the BOI reporting requirements.
Is BOI reporting dead or alive?
As of December 26, 2024, small business owners are not required to file beneficial ownership information. The Department of Justice can appeal the decision, and this case could go all the way to the Supreme Court. Keep up to date at NFIB.com/ProtectPrivacy.
The court reinstated a nationwide injunction, which means that the rule is on indefinite hold and the government can’t enforce it against any individual or business in any state. So, for now, if you haven’t filed the form, you can hold off — but don’t ignore it entirely. There’s a chance that the courts could again lift the hold. As before, it’s a good idea to prepare beneficial ownership information just in case.
What else can businesses do?
With the future of this rule in the hands of the courts, now is the time to keep the pressure on Congress to fully repeal the beneficial ownership reporting. Send them a message below!
Personalized messages get the attention of lawmakers! Examples you could share:
- If you have already filed, how much time did it take away from running your business?
- If you hired additional help to support additional reporting, how much did it cost?
NFIB does not provide tax, legal, or accounting advice. This action alert has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisor(s) for specific information related to your business.