Brittany Ratelle explains the Treasury Department's temporary pause on BOI filing penalties. The filing requirement stays in force, and missing the March 21 deadline leaves your business technically non-compliant, which could surface during loan approvals, mergers, or acquisitions.
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The BOI just go bye-bye-bye? I'm Brittany Ratelle, social media lawyer. Let's break down the latest news on the BOI reporting for small businesses just like you. You might have heard that the Treasury Department just suspended all fines and penalties for the Beneficial Owner Information, BOI for short. Sounds like a free pass, right? Not exactly. The BOI whiplash has been wild in the courts. If you know, you know. But there are still some loose ends to clean up here. Technically, the Corporate Transparency Act, the law that requires LLCs and corporations to file the BOI, is still the law even if there are no fines. So after March 21st deadline, if you haven't filed the BOI, you're technically in violation, even though nothing will happen to you right now. No fines, no jail time. You can still pass go, collect $200. However, if you have a compliance violation that could trigger breaches in other agreements like loans, leases, even contracts requiring you to follow the law, I'm looking at you, anyone who has moral clauses in their sponsorship, endorsement, or other licensing contracts. It's possible, but probably not likely, that a dormant violation of the CTA could creep up during due diligence on a future merger, acquisition, licensing, joint venture, or some other big transaction where people want zero risk. The good news: you still have time until March 21st to file. Can't in my lawyer heart say there's no risk in not filing because the risk is low but never zero. So if you want my free guide on how to file, comment BOI below and make sure you're following me so you don't miss any updates.
