With the Corporate Transparency Act‘s requirement for filing on new and existing entities effective January 1, 2024, companies formed on or after January 1, 2024, will be required to file their BOI reports within 90 days of formation, while pre-2024 filers will have until January 1, 2025.
The Corporate Transparency Act (CTA) mandates that most U.S. businesses, including Limited Liability Companies (LLCs) registered in Alabama,
Starting January 1, 2025, all entities formed on or after January 1, 2025, will be required to fulfil the BOIR filing obligations within 30 days of filing the formation documents.
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How to Prepare for the BOIR Filing Deadline
In preparation for the deadline of January 1, 2025, proceed as follows:
1. Confirm Exemptions
First, see if your business is exempt under the CTA. Overall, the CTA exempts 23 types of entities. Examples of exempt entities include, but are not limited to, publicly traded companies, covered financial institutions and nonprofits. If your entity does not fall into one of the exempt categories, it is considered a “reporting company” and will need to file with BOIR.
Conclusion
For entities formed prior to 2024, the BOIR filing deadline of the Corporate Transparency Act presents a critical compliance date that will be ignored at one’s peril. Verification of exemptions, updating of records, and identification of their beneficial owners well in advance of the deadline will definitely help a business avoid facing penalties and result in smoother compliance.
Whether preparing for the upcoming deadline or planning for future requirements, proactively taking these steps now will save time and reduce stress.
