Beneficial Ownership Information (BOI) Reporting
Written by Aparna Devalla, CPA
Curated by Rubric Financial
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What the CTA and BOI Reporting Were
- The Corporate Transparency Act (CTA) originally required most U.S. companies to report their beneficial owners to FinCEN (Financial Crimes Enforcement Network)
- A beneficial owner is any individual who directly or indirectly exercises substantial control over the company or owns/controls at least 25% of its ownership interests
- As originally written, companies formed before January 1, 2024 had until January 1, 2025 to file, and most early-stage startups would have been reporting companies
- The rule was challenged in court repeatedly through 2024 and early 2025, with enforcement paused and restarted several times before FinCEN changed course
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