Director of Content, Christian Hill, covering recent developments in FinCEN's BOI Reporting Rule
Transcript Below:
Hey Empire Builders!
If you're a real estate agent or work with entities like LLCs, corporations, or similar structures, this video is for you. Today, we're diving into the Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information Reporting Rule, or as many call it, the BOI Reporting Rule.
This rule has been making headlines recently thanks to some back and forth in the courts. A Texas court temporarily halted the rule, which added to the confusion. But just when things seemed settled, the case took another turn. So, let's break it all down in simple terms and talk about what this means for you and your real estate business.
My name is Christian, Director of Content for Empire Learning, where we're all about helping real estate pros like you make money, save time, and crush it in your business.
TL;DR
The BOI Reporting Rule originally had a December 31, 2024 deadline, but:
- On December 3, 2024, a Texas court halted it.
- It was reinstated on December 23, 2024, with a new deadline of January 13, 2025.
- Just three days later, on December 26, 2024, the rule was put on hold again.
For now, enforcement of the rule is suspended while the courts work through their appeal. At the moment, there's nothing you need to file, but this could change.
You can also go ahead and file anyway, like I have for my real estate investing LLC.
Why Does This Rule Matter?
The BOI Reporting Rule is part of a bigger push to increase corporate transparency and crack down on things like money laundering and tax evasion.
It requires certain businesses to report who actually owns and controls them. This means providing details about:
- Beneficial owners: Anyone who owns or controls at least 25% of the company or exercises significant control.
- Company applicants: The people responsible for filing the company's registration paperwork.
If you or a client has set up your real estate business as an LLC or corporation, you will almost certainly need to comply if the rule is reinstated.
The Legal Drama
Here’s a quick timeline of recent events:
- December 3, 2024: A Texas court issued a nationwide injunction stopping enforcement of the Corporate Transparency Act, which includes the BOI Reporting Rule.
- December 23, 2024: The Fifth Circuit reinstated the rule—but only for a few days.
- December 26, 2024: The court reversed course again, saying they needed to evaluate whether the law was constitutional.
What this means as of the date of this video:
- Businesses, including real estate LLCs and corporations, don’t have to file the BOI report with FinCEN.
- However, this could change depending on the court’s final decision.
What Happens Next?
The appeal is moving forward, and the court will hear oral arguments soon. This decision could set the stage for how corporate transparency laws are enforced in the future.
For now, the reporting requirements are on hold. That said, it’s a good idea to understand the requirements now, just in case they come back into play.
Action Steps for You
Even though enforcement is paused, take a moment to:
- Review your business structure: Ensure you know who qualifies as a beneficial owner or company applicant.
- Seek professional advice: If you're not sure whether the rule applies to you, reach out to a legal or financial professional for guidance.
- Use FinCEN resources: They provide compliance guides and toolkits to help you navigate these requirements if they resume.
At the end of the day, staying informed is key. The BOI Reporting Rule might feel like an extra layer of paperwork, but it’s ultimately about protecting your business and promoting transparency. If enforcement resumes, being prepared now means less stress later.
Thanks for watching! If you found this video helpful, don’t forget to like, comment, and subscribe for more updates on industry topics that matter to real estate professionals like you.
If you’re looking to stay ahead in your field, check out continuing education courses from Empire Learning.
Until next time, stay sharp out there, agents!
