BOI/CTA Update: What San Diego Business Owners Need to Know About Beneficial Ownership Reporting

San Diego business owners, take note. The Corporate Transparency Act, or CTA, and its beneficial ownership information (BOI) reporting requirements are back in the spotlight. 

On February 17, 2025, the U.S. District Court for the Eastern District of Texas, in the case Smith vs. Dept. of the Treasury, reinstated the reporting requirements. For most U.S. companies, BOI must now be reported to the Financial Crimes Enforcement Network, or FinCEN, by March 21, 2025.

What does this mean for your San Diego business? Simply put, if you own or manage a company, you need to know what counts as beneficial ownership and how to report it. Failing to comply could expose your business to fines or legal issues, even though recent Treasury guidance has limited enforcement of penalties temporarily.

The Ongoing Legal Shuffle

Here’s the tricky part: this ruling might not be the last word. Several other BOI/CTA cases are still being appealed in courts across the country. Additionally, the Repealing Big Brother Overreach Act was reintroduced in Congress on January 15, 2025. If passed, it could repeal the CTA entirely.

So what’s a San Diego business owner to do? The answer is simple: stay informed, stay proactive, and make sure your filings and compliance measures are ready even if the rules change again.

Why BOI/CTA Compliance Matters

Even if you think your business is too small to matter, the BOI rules apply broadly. Reporting your beneficial owners (anyone with significant control or ownership) helps prevent fraud, money laundering, and other financial crimes. More importantly, it ensures your business is on solid legal footing, protecting both you and your stakeholders.

Think of it this way: missing a filing deadline or misunderstanding the rules could create unnecessary headaches for you, your partners, or future buyers. Proper reporting now saves you from complex and costly complications later.

Next Steps for San Diego Business Owners

Here’s what you can do today:

• Review your business ownership structure and identify all beneficial owners.
  
• Gather personal information required for BOI reporting, including names, addresses, and dates of birth.
  
• Stay up-to-date on changes to BOI/CTA rules. This is a fast-moving area of law.
  
• Schedule a consultation to discuss your business-specific compliance strategy and deadlines.
  
  

Keeping up with BOI reporting doesn’t have to be overwhelming. With the right guidance, you can ensure your San Diego business remains compliant and protected from surprises.

Take Action Now

If you’re unsure how the BOI/CTA affects your company or want personalized guidance for your San Diego business, book a 15-minute consultation today. We’ll review your reporting obligations, deadlines, and strategies to keep your business compliant, no stress, no confusion.