The landscape of beneficial ownership reporting (BOI) requirements continues to evolve, with recent Supreme Court actions adding new layers of complexity for business owners. Let’s review why this matters:
Background: Understanding BOI Reporting
The Corporate Transparency Act represents one of the most significant changes to business compliance in recent years. At its core, the Act seeks the ability to require companies to report who ultimately owns or controls them – their “beneficial owners.” This information is crucial for the Financial Crimes Enforcement Network (FinCEN) to better prevent financial crimes like money laundering and terrorism financing.
A beneficial owner isn’t just someone who owns 25% or more of a company – it’s also anyone who exercises “substantial control” over the organization. This includes senior officers making important decisions, regardless of their ownership stakes.
While most corporations and LLCs would be required to report under the Corporate Transparency Act, there are important exceptions. “Large operating entities” with more than 20 US employees and over $5 million in annual revenue are exempt, as are 23 other specific types of entities. For those who would be required to report, the process involves submitting detailed information about both the company and its beneficial owners, including identification documents.
Latest Corporate Transparency Act Developments
Here’s what you need to know as of this publish date:
- The Supreme Court recently lifted one nationwide pause on BOI reporting requirements (Texas Top Cop Shop, Inc. v. McHenry case).
- However, a separate court order (Smith v. U.S. Department of the Treasury) keeps the pause in effect.
- FinCEN has not yet provided guidance on these conflicting decisions.
What This Means for You: Currently, your business is not required to file beneficial ownership information with FinCEN. However, this situation remains fluid, and preparation is key.
Stay Informed: Our team is actively monitoring these developments. Reach out to us for questions, an immediate update, or to gain clarity on this evolving situation.
REDW is committed to helping you with filing your BOI. Contact our trusted tax compliance team.
💡Learn More About BOI Reporting

New BOI Reporting Is Here. REDW Can Help.
The Corporate Transparency Act seeks disclosure of the beneficial ownership information (“BOI”) of certain entities from people who own or control a company. The goal of this new requirement is to help combat money laundering, terrorism, and other illegal activities. Read more.