BOI reporting for US LLCs (at least) temporarily suspended
- Thread starter Forester
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Good morning, bad news.
https://natlawreview.com/article/fe...s-reporting-obligations-effective-immediately
https://natlawreview.com/article/fe...s-reporting-obligations-effective-immediately
Good morning. Good news.
https://www.nfib.com/news-article/beneficial-ownership-reporting-on-indefinite-hold/
https://www.wegnercpas.com/boi-update-boi-requirements-on-hold-again/
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“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject︀ to liability if they fail to do so while the order remains in force. However,︁ reporting companies may continue to voluntarily submit beneficial ownership information reports.”
On December 23rd, 2024, a panel of the︅ US Court of Appeals for the Fifth Circuit initially ruled in favor of the Corporate︆ Transparency Act’s legality, overturning the December 3rd ruling. This ruling reinstated the filing requirements, and︇ FinCEN immediately extended deadlines.
On December 26th, a second Fifth Circuit Court of Appeals panel︈ vacated the December 23rd ruling. This ruling issued a stay of preliminary injunction meaning that︉ BOI reporting requirements are not in effect. This ruling applies nationwide for now.
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https://www.nfib.com/news-article/beneficial-ownership-reporting-on-indefinite-hold/
https://www.wegnercpas.com/boi-update-boi-requirements-on-hold-again/
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Days after the US Circuit Court of Appeals effectively reinstated
No Filing Required Right Now
A federal court issued a nationwide order saying businesses don’t currently have to file their beneficial ownership information (BOI) with FinCEN. You also won’t face penalties for not filing while this order is in place.Voluntary Filing Is Still an Option
Even though it’s not required, businesses can choose to submit their BOI reports voluntarily. FinCEN’s BOI page shares the following update:“In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject︀ to liability if they fail to do so while the order remains in force. However,︁ reporting companies may continue to voluntarily submit beneficial ownership information reports.”
Why This Happened︂
The case (Texas Top Cop Shop, Inc. v. Garland) challenged the legality of︃ the Corporate Transparency Act, and the court issued an injunction temporarily halting enforcement of the︄ BOI filing requirement on December 3rd, 2024.On December 23rd, 2024, a panel of the︅ US Court of Appeals for the Fifth Circuit initially ruled in favor of the Corporate︆ Transparency Act’s legality, overturning the December 3rd ruling. This ruling reinstated the filing requirements, and︇ FinCEN immediately extended deadlines.
On December 26th, a second Fifth Circuit Court of Appeals panel︈ vacated the December 23rd ruling. This ruling issued a stay of preliminary injunction meaning that︉ BOI reporting requirements are not in effect. This ruling applies nationwide for now.
What’s Next?︊
The Department of Justice and Treasury Department continue to express confidence in the CTA’s constitutionality︋ and are appealing the decision."
its only the biggest economy due to (a very highly inflated) measurement of usd. Usd only worth much outside us but inside its not that strong.
Any legal system should have some︃ predictability, even precedent based one such as in US. This matter is becoming true rolercoster︄
https://www.gibsondunn.com/cta-upda...ership-information-reporting-may-soon-resume/
https://www.gibsondunn.com/cta-upda...ership-information-reporting-may-soon-resume/
Its suspended but i already applied it
As long im not going public and its within the US government only im fine
As long im not going public and its within the US government only im fine
Until they decide they don't like you anymore. By giving them your identity, they can kick your door down in the middle of the night and take you away from your children without warning. Relying on current laws is a very risky, very short sighted strategy.
The support for CTA and BOIR existed in the previous Trump presidential administration and had bipartisan support.
It probably won't be amended towards privileged treatment of small businesses as they are the reason - money laundering thru shell companies - why CTA was introduced at the first place.
This is interesting for read
https://www.wsj.com/articles/republ...o-repeal-corporate-transparency-act-3f35498d?
https://www.wsj.com/opinion/dont-be...arent-cta-finance-873cbe73?mod=article_inline
but the proposed bill probably won't change anything.
It probably won't be amended towards privileged treatment of small businesses as they are the reason - money laundering thru shell companies - why CTA was introduced at the first place.
This is interesting for read
https://www.wsj.com/articles/republ...o-repeal-corporate-transparency-act-3f35498d?
https://www.wsj.com/opinion/dont-be...arent-cta-finance-873cbe73?mod=article_inline
but the proposed bill probably won't change anything.
Small Business Coalition Letter to President Trump Requesting Relief from Corporate Transparency Act Reporting Requirement for Beneficial Ownership Information
https://www.uschamber.com/small-bus...uirement-for-beneficial-ownership-information
https://www.uschamber.com/small-bus...uirement-for-beneficial-ownership-information
The US government already knows who you are (or can easily find out) and, US person or not, will make your life difficult if they decide to do so. Debanking, unofficial blacklisting, freezing assets, sanction lists, extradition, rendition, and even drone strikes are all options on the continuum. This is a nation that forced︀ down the President of Ecuador’s airplane because they merely suspected Edward Snowden was on board.︁ You do have to get their attention, either specifically or administratively, though. They aren’t generally︂ going to mess with you unless you catch their attention. The options on the more︃ extreme side of the continuum tend to require specific as opposed to administrative attention. To︄ use a popular saying, the US government generally can’t find its own a*****e with both︅ hands, but if it really wants to, can and will keep adding additional hands until︆ it finds AN a*****e. I know a venture capitalist who ran afoul of the US︇ government for his daughter’s political views and got hit with the first three on that︈ list.
This change increases the risk of administrative attention. It’s annoying but not really game︉ changing.
I‘ve been watching this. I tend to drag my feet until the last second︊ on complying with new regulations like this because they are often suspended or overturned due︋ to legal action. It’s a quirk of the US economy.
This change increases the risk of administrative attention. It’s annoying but not really game︉ changing.
I‘ve been watching this. I tend to drag my feet until the last second︊ on complying with new regulations like this because they are often suspended or overturned due︋ to legal action. It’s a quirk of the US economy.
Not necessarily. It took them︉ 10 years to finally find Bin Laden with all their resources thrown at it. Unless︊ you've been leaving trails on your legal identity like relying on current BOI laws (stupid),︋ then when the US bear is chasing us all, you don't need to outrun the︌ bear, you just need to outrun the others. So you shouldn't rely on today's US︍ BOI laws for that reason.
Remind me of how that ended for Mr. bin Laden? Correct, one needs to keep a low profile to avoid sticking out too far from the crowd and avoid the︀ administrative attention, but when the bear is chasing you specifically, there is nowhere to hide︁ for long.
Most of us are not going to be chased specifically. We’re just not︂ that important. We do have to worry about getting caught in the impersonal administrative nets︃ being cast about. You can take steps to minimize that in how you structure things︄ or even by avoiding the US entirely. It becomes considerably more difficult if one is︅ a US person or must do business here. Compliance to US law is necessary if︆ you wish to do business in the US, especially as a US person, and noncompliant︇ paperwork is about the fastest way to get that administrative attention here. At the point︈ you’ve attracted the attention, it’s already too late. The machine will, at best, grind impersonally︉ down any legal trails that exist (and some always exist) and make your life harder︊ until you resolve whatever attracted the attention, which will invariably involve, at a minimum, billable︋ hours to an attorney.
Most of us are not going to be chased specifically. We’re just not︂ that important. We do have to worry about getting caught in the impersonal administrative nets︃ being cast about. You can take steps to minimize that in how you structure things︄ or even by avoiding the US entirely. It becomes considerably more difficult if one is︅ a US person or must do business here. Compliance to US law is necessary if︆ you wish to do business in the US, especially as a US person, and noncompliant︇ paperwork is about the fastest way to get that administrative attention here. At the point︈ you’ve attracted the attention, it’s already too late. The machine will, at best, grind impersonally︉ down any legal trails that exist (and some always exist) and make your life harder︊ until you resolve whatever attracted the attention, which will invariably involve, at a minimum, billable︋ hours to an attorney.
The Bin Laden story tells us that if you are the world's most wanted criminal, it would still take the US 10 years and billions of dedicated dollars to finally find you. If you are normal and operate with a low profile, the US doesn't need to know who you are or be able to track you down. One of the ways this is achieved is to interface with officialdom as little as possible. You can comply with the law by not registering an LLC and taking part in the BOI rules. Find alternatives. The point was that AlexMorgan said "As long im not︀ going public and its within the US government only im fine (to give them his︁ details)", to which I made the point that this is unless they decide they don't︂ like you anymore and kick your door down for being "wrong" in some way. The︃ best protection from the law is to not interact with them, at least not with︄ your legal identity.
That works well until the US government︅ decides it wants to interact with you. Then, you’re going to be interacted with regardless︆ of your wishes. Where money flows, it can be tracked. Don’t overestimate the amount of︇ privacy you think you have. Certainly, you can reduce the likelihood of interaction by reducing︈ your exposure to the US economy. Looking normal reduces risk as well. So does living︉ in a cardboard box under a highway bridge and having no bank account. Everyone has︊ different exposures and risk profiles. You’re a US person? You’re a foreign person holding through︋ exempt entities? Yours is a simple tax situation? Your main concern is putting assets beyond︌ the reach of divorce lawyers? It might be acceptable or even irrelevant in some situations,︍ and lower risk to comply than to use some alternative method.
That's why a very important part of︃ your OPSEC is making sure the US or any other government does not decide it︄ wants to interact with you. It's not easy being boring and there are sacrifices involved,︅ but the US has much lower hanging fruits to grab, such as those putting their︆ names on LLC BOIs. They wouldn't demand these BOI records if they could just find︇ you anyway. Laws like this speak very loudly as to the strategic situation.
The gravest︈ threat to privacy today (and money as a consequence) is facial recognition. Actually keeping a︉ private money flow is a far simpler problem than your face becoming an ID card︊ when any camera in the world (could even be your own phone) detects you and︋ reports back to base. The less money tied to your identity, the less interest you︌ will arouse. As long as LLC BOI is the way it is, it's safest not︍ to put your name to it.
The gravest︈ threat to privacy today (and money as a consequence) is facial recognition. Actually keeping a︉ private money flow is a far simpler problem than your face becoming an ID card︊ when any camera in the world (could even be your own phone) detects you and︋ reports back to base. The less money tied to your identity, the less interest you︌ will arouse. As long as LLC BOI is the way it is, it's safest not︍ to put your name to it.
Clearview AI is horrifying, more so than most realize. To keep this︅ on topic, that might be a separate thread.
Filing a BOI report with FinCen won’t︆ necessarily make you any lower hanging fruit than you already are. Thousands upon thousands of︇ these are filed. It’s not going to cause anyone to stand out and might not︈ even be the first, second, or tenth thing they find when they start investigating. Sure,︉ they’ll get around to looking there eventually. Sure, it could be the trigger. Generally, if︊ you get swept into FtM they are going to pull on the threads where you︋ popped up on their radar first. If your crypto wallet alternative (or anything else) happens︌ to be flagged for any random reason, movements around that will be the very first︍ things they investigate. The impact of this BOI filing is very situationally dependent. It could︎ be the one thing that increases your risk the most. It could be completely irrelevant.️ It’s important to do the thing that attracts the least amount of attention in any case.
Filing a BOI report with FinCen won’t︆ necessarily make you any lower hanging fruit than you already are. Thousands upon thousands of︇ these are filed. It’s not going to cause anyone to stand out and might not︈ even be the first, second, or tenth thing they find when they start investigating. Sure,︉ they’ll get around to looking there eventually. Sure, it could be the trigger. Generally, if︊ you get swept into FtM they are going to pull on the threads where you︋ popped up on their radar first. If your crypto wallet alternative (or anything else) happens︌ to be flagged for any random reason, movements around that will be the very first︍ things they investigate. The impact of this BOI filing is very situationally dependent. It could︎ be the one thing that increases your risk the most. It could be completely irrelevant.️ It’s important to do the thing that attracts the least amount of attention in any case.
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