The Jeter Law Firm previously shared information about the Corporate Transparency Act (Act). Under this federal act, certain businesses are required to report information on beneficial ownership. Well, as expected, there have been court cases around this requirement. The latest news is that the requirement for certain business owners to file the Beneficial Ownership Interest (BOI) report has been "stayed" by the 5th Circuit Federal Court.
What does this mean? It means the requirement to file BOI reports is paused—for now. However, certain business owners still have the option to voluntarily file during this time.
If you are a "beneficial owner" of a for-profit Corporation or Limited Liability Company (LLC) and choose to file the BOI report, it can be filed using some of your basic business ownership information. If your company is one of the following, it would be considered exempt:
501(c) and tax exempt
501(c) and lost its tax-exempt status less than 180 days ago
A political organization under 527(e)(1) that is tax exempt
A trust entity
So, if your company is exempt, you do not have to file. If you are a beneficial owner of a for-profit company that is not exempt, until further details are figured out through the court(s), it is your choice of whether you file or not.
More details to come.
