Heads Up: Federal Court Hits Pause on New Business Reporting Law (And We've Got Your Back)

D. Rhodes, CPA, Writer and Editor

If you've been stressed about that new federal reporting requirement coming in 2025 - you know, the one requiring business owners to report who owns their business - I've got some news that'll help you breathe easier.

We've internally-developed two powerful tools to help you stay ahead of the game:

1. Done-For-You: 

   • Takes less than 2 minutes to enter your info 

   • Sends confirmation right to your inbox 

   • We handle all the technical stuff with FinCEN 

   • You can focus on what matters - running your shop and taking care of your clients 

     
     

2. Do-It-Yourself: 

   • Use our BOI AI-chatbot for guidance 

   • Connected directly to FinCEN's official website 

   • Access to the complete Texas court case documents 

   • Get instant, reliable answers to any BOI questions you have 

   • All information comes from verified government sources 

Look, I know you got into business to support your family and lifestyle, while building relationships with your clients - not to deal with federal reporting requirements. That's why we built this system: to make any future BOI requirements as painless as possible.

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Understand the Reporting Requirement 

Here's the deal: A Texas court just put the required reporting on hold. But before we get into what that means for your business, let's break down what was supposed to happen and why it matters to you.

Remember how your state already requires your LLC or corporation to file an annual report?

Well, the feds wanted to add another layer - something called the Corporate Transparency Act (CTA). It would've required every business with an LLC or corporation to: 

• Report who owns their business 

• Share personal information like addresses and ID numbers 

• Keep updating this info whenever anything changes 

• Face some serious penalties (we're talking up to $10,000 and possible jail time) for not complying 

Sound like overkill? The Texas court thought so too. They basically said, "Hold up - Congress might not even have the power to require this." 

The Numbers Don't Lie 

According to FinCEN (the federal agency in charge of this): 

• About 32.6 million small businesses would've had to file these reports 

• It would cost businesses anywhere from $85 to $2,615 each to prepare these reports 

• The total cost to small businesses? About $22.7 billion in just the first year 

Why It Got Blocked 

The court raised some interesting points that hit close to home. They said:

1. States have always been in charge of business registration 

2. The feds can't just demand information from every business just because some might do something wrong 

3. This isn't like your state annual report - it's a whole new level of required disclosure 

What This Means For Your 

Last week, on December 3rd, 2024, the Texas court put this requirement on hold. But here's the thing - FinCEN has made it clear that this pause could be lifted at any moment. When that happens, the requirement would kick back in immediately, as of now. This is why we encourage you to stay proactive. 

While nothing is technically required right now: 

• You can still file voluntarily (and many businesses are choosing to do this) 

• Being prepared means you won't have to rush if the requirement suddenly returns 

• Early compliance means one less thing to worry about down the road 

Remember: Our ultimate goal is to help you save time and money, while building wealth and legacy.

The choice is yours, but the clock is ticking. Reach out today so we can help get you from where you're at, to where you want to be. Your move boss.

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*This article provides general information, not individual tax advice. Tax situations vary; consult with a qualified tax professional, like myself, for advice specific to your circumstances.