The Corporate Transparency Act (CTA) took effect on January 1, 2024.

The CTA requires most smaller corporations, limited liability companies, and some other business entities to file a beneficial ownership information (BOI) report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN).

The BOI report identifies and provides contact information for the human beings who own or control the entity. This information will be used by law enforcement to combat money laundering and other illegal activities.

It appeared that this massive new filing requirement got off to a good start: FinCEN announced in mid-February that over 500,000 of the 32 million existing businesses subject to the CTA had filed BOI reports with the agency. Users said that FinCEN’s BOI reporting website worked well.

FinCEN was probably breathing a sigh of relief. Too soon.

The agency suffered an unexpected gut punch when a federal district court ruled that the CTA was unconstitutional.

Meanwhile, New York State got into the act by passing its own BOI reporting law for New York limited liability companies (LLCs).

Here’s where BOI reporting stands today. ... Log in to view full article.