What the Latest Corporate Transparency Act Changes Mean for San Diego Business Owners

What Happened

On March 2, 2025, the U.S. Department of the Treasury announced that it will not enforce any penalties or fines related to the CTA’s BOI reporting requirements. The agency explained that it intends to narrow the law’s scope so that only foreign reporting companies, not most U.S. small businesses, are required to report their ownership information.

If you’ve been following this story, you know this is a big shift. Just weeks ago, business owners across the country were racing to understand what information they needed to report, how to do it, and by when. Now that pressure is temporarily off, but the story isn’t over.

A Quick Recap of How We Got Here

The CTA was originally designed to prevent money laundering and the misuse of shell companies. It required almost all U.S. businesses, from family LLCs to S corporations, to file Beneficial Ownership Information (BOI) reports disclosing the identities of their “beneficial owners.”

When the law took effect, it caused widespread concern among small business owners who feared steep fines, privacy risks, and complicated compliance steps. Then came the Smith v. Department of the Treasury case out of Texas in February 2025.

In that case, the court reinstated the CTA’s filing requirement and set a filing deadline of March 21, 2025. But now that the Treasury has said it won’t enforce penalties, that ruling has lost much of its power, at least for now.

In short:

• The law technically still exists.
  
• The Treasury has paused enforcement.
  
• Courts are still debating its constitutionality and scope.
  
  

So, while the filing requirement isn’t currently being enforced, future rulings could change that quickly.

What This Means for San Diego Business Owners

If you own an LLC, corporation, or partnership in San Diego, this legal back-and-forth probably feels confusing. You may be asking: Should I bother preparing my BOI filing at all?

Here’s the practical answer: stay ready.

This pause doesn’t mean the requirement is gone forever. The government could reinstate penalties at any time, depending on how future cases unfold. For now, think of this as an opportunity to get your ducks in a row without the pressure of a hard deadline.

If you have already gathered the necessary information (your business structure, ownership details, and identification for any beneficial owners), keep it organized and accessible. If the reporting requirement comes back, you’ll be prepared to file quickly and accurately.

At Peaceful Warrior Law, we’ve been closely monitoring these changes because they directly affect how you protect your business and personal assets. Estate planning and business law overlap more than most people realize. For example, if your company is owned by a trust or family partnership, that structure could trigger reporting requirements under certain interpretations of the law.

Having a comprehensive estate plan that coordinates with your business plan ensures that you stay compliant, protect your privacy, and keep your legacy intact, without last-minute stress.

Why This Matters Beyond Paperwork

This isn’t just about filling out another government form. It’s about control, transparency, and protecting what you’ve built.

For family-owned businesses, the BOI rules highlight an even bigger issue: how vulnerable your company can be without clear documentation and coordinated legal planning. Whether you’re managing a small San Diego real estate LLC or a growing multi-state business, your company’s legal foundation should align with your estate and asset protection goals.

Think of this as your reminder to take stock, not just of your compliance obligations, but of your bigger picture.

• Are your business and personal assets legally aligned?
  
• Is your trust updated to reflect your company ownership?
  
• Does your estate plan reflect who should manage things if you’re gone or incapacitated?
  
  

If any of those questions give you pause, it may be time to revisit your plan.

Staying Ahead of the Changes

Legal updates like this one are constant, and missing a single change can create complications down the road. That’s why at Peaceful Warrior Law, we don’t just prepare legal documents; we build long-term strategies that adapt as laws and your life evolve.

Whether the CTA ends up applying to your business or not, your best defense is preparation. Think of this as a reminder to protect what matters most: your family, your business, and your peace of mind.

We can help you stay ready, compliant, and confident, without the confusion.