FinCEN Extends Deadline from 30 Days to 90 Days for Companies Created in 2024

December 1, 2023

Alert! New update to CTA Corporate Transparency Act

Just this past week, the update we were waiting for came in! The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a rule that extends the deadline from 30 days to 90 days for reporting companies created or registered in 2024 to file initial beneficial ownership information reports for the new federal law called the Corporate Transparency Act (CTA).

Here are three key takeaways of the recent CTA update:

· FinCEN published a final rule that provides a temporary extension to Corporate Transparency Act (CTA) reporting for certain companies.

· Companies formed or registered in 2024 will have 90 days to report beneficial ownership information to FinCEN.

· Companies should continue to take steps to prepare for the CTA’s January 1, 2024, effective date.

As we had mentioned in a previous Dickerson Report, the Corporate Transparency Act (CTA), which becomes effective on January 1, 2024, creates an obligation for millions of entities nationwide to report beneficial ownership information (BOI) and certain other information to FinCEN. This requirement extends to private entities previously not otherwise subject to any reporting requirements.

Under prior FinCEN rulemaking (the BOI Rule), companies created or first registered after January 1, 2024, would have had only 30 calendar days (the notice date) after the date that is the earlier of the date on which a company receives actual notice or public notice that it has been created or registered to determine whether they are subject to the CTA and, if so, report required information to FinCEN.

However, on November 29, 2023, FinCEN amended the BOI Rule to extend that reporting deadline to 90 calendar days after the notice date for companies created or first registered in 2024.

The CTA requires certain corporations, limited liability companies and other similar entities to report BOI and information concerning one or two individuals who form or register reporting companies (company applicants) to FinCEN.

On September 30, 2022, FinCEN finalized the BOI Rule to implement the CTA’s reporting requirements. The BOI Rule required all reporting companies created or registered to do business on or after January 1, 2024, to make an initial report containing information concerning the company, BOI and company applicants within 30 calendar days of the applicable notice date.

A wide range of impacted companies and commentators argued that this short reporting period for new companies would pose a significant burden and compliance challenge, particularly with a new, untested rule taking effect. In addition, as of this date, FinCEN has not established its reporting system, nor are the mechanics for filing finalized. FinCEN responded to this concern by publishing a notice of proposed rulemaking on September 28, 2023, proposing to extend the deadline for companies formed or registered in 2024 from 30 to 90 days. The amendment to the BOI Rule that FinCEN finalized on November 29, 2023, makes that extension official.

FinCEN stated that “numerous” commenters advocated for extending the deadline to more than 90 calendar days. Although FinCEN has acknowledged that it will be complex for newly created or registered companies to navigate the many novel aspects of the CTA’s reporting requirements (including whether a company is within the definition of reporting company and, if so, which individuals would meet the definition of a beneficial owner or company applicant), FinCEN declined to extend the reporting period beyond 90 days. FinCEN noted that the extension from 30 to 90 days should provide sufficient additional time for impacted entities and their third-party service providers to understand the new reporting obligation and collect the necessary information to complete required filings. Rest assure, we are ready to help you do this as a third party, so please contact us to learn more about how we can help you be in compliance.

The extension to 90 days applies to both domestic entities created in 2024 and foreign entities that first register in the United States in 2024. However, entities created or registered on or after January 1, 2025, remain subject to the original 30-day deadline. The November 29 amendment also does not impact the reporting timeline for reporting companies created or registered before 2024. Such companies are still required to file their initial BOI reports with FinCEN by January 1, 2025.

The reporting extension for companies formed or first registered to do business in 2024 will provide such companies a small amount of additional time to determine whether they are subject to the CTA, and gather the information required to submit reports to FinCEN. However, given the complexity of the CTA, companies should not take this temporary reporting extension as an opportunity to pause efforts to prepare for the CTA’s January 1, 2024, effective date. Rather, companies should continue to take steps to prepare for, and lessen the impact, of the CTA. Importantly, entities formed prior to 2024 will have until the end of that year to report while those formed after January 1, 2024, will only have 90 days.

As I mentioned, we are ready to help you be in compliance so you can rest easy this holiday and upcoming new year. Make a plan to protect your business compliance by meeting with me and my team. Contact our office to set up an appointment in, Laredo or via zoom and let’s be ready for 2024!

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Molding Your Financial Future in 2025

January 17, 2025

As we step into the new year, I find myself reflecting on the countless entrepreneurs, professionals, and business owners I’ve worked with throughout my career. Helping clients mold a shield of protection around their assets has been one of the most rewarding aspects of my practice. Time and time again, I’ve witnessed that success isn’t reserved for geniuses, nor does it require a fancy degree. The secret lies in action, strategy, and discipline—traits anyone can cultivate to achieve and maintain wealth. The Myth of Instant Wealth How often have we heard someone say, “When I win the lottery, I’ll finally be set”? It’s a common refrain, but let’s examine the reality. Imagine winning $10 million in the lottery. After choosing the lump sum option and paying taxes, you might walk away with only a fraction of that—perhaps $2 million. Without a solid financial plan, it’s no surprise that many lottery winners end up broke within a few years. True wealth isn’t about luck or flashy possessions. It’s about what you do with your resources and how you protect them. If you look around your community, the truly wealthy aren’t necessarily the ones with the biggest houses or newest cars. They’re often the ones who’ve taken calculated risks, lived within their means, and built unglamorous but steady businesses. These individuals mold the clay they’re given, creating shields of protection around their assets that ensure their financial stability for generations. The Trap of Looking Rich We’ve all seen it—the big house, luxury car, and designer wardrobe. But appearances can be deceiving. Many who look wealthy are drowning in debt, spending more than they earn, and chasing the illusion of success. As my wife lovingly calls it, Dickersonism #7: “Looking rich does not MAKE you rich.” True wealth is built on a foundation of solid, income-generating assets, not consumables. Falling into the trap of “keeping up with the Joneses” (or Kardashians) often leads to financial instability and missed opportunities to create lasting wealth. The Cost of Inaction One of the greatest obstacles to wealth and protection is inaction. Henry Ford famously said, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.” Inaction is the path of least resistance, but it’s also the path to missed opportunities and unfulfilled potential. Some hesitate out of fear or over-analysis, a condition I call “analysis paralysis.” It’s easy to get caught up in what could go wrong, but this mindset keeps you stagnant. Every successful person I’ve worked with has one thing in common: they took action. They understood the risks but focused on the rewards, moving forward despite uncertainty. Setting Your Course for 2025 If you haven’t taken steps to mold your financial future, now is the time. Ask yourself: Where do you want to be a year from now? In five years? In ten? Define your goals and begin building the path to reach them. Just as importantly, protect what you’ve built. Not having a plan to shield your assets is like running exposed electrical wiring—sooner or later, you’ll face unnecessary risks. A board-certified estate planning attorney can help you design a plan to safeguard your wealth, ensuring it stays secure for you and your loved ones. Take Control of Your Future Success doesn’t just happen—it’s molded. Listen to trusted advisors, but remember that the final decisions are yours to make. Clarify your vision, take bold steps, and build the life you’ve always dreamed of. At The J.M. Dickerson Law Firm, we’re here to guide you every step of the way. Whether in person, by appointment, or via Zoom, we’re committed to helping you create a legacy of success and security. Contact us today, we can help! South Texas: 956-791-5422 Central Texas: 830-302-4577 Let’s make 2025 your year of action, growth, and protection.

Embracing the Holidays as a Time for Estate Planning

December 20, 2024

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Start the New Year Strong: Four Steps to Success

December 13, 2024

As the end of the year approaches, it’s easy to feel the weight of unfinished tasks and the hustle of the holiday season. Between wrapping up work projects, preparing for family gatherings, and making plans for the future, this time of year can feel overwhelming. But amidst the busyness lies a valuable opportunity—the chance to press reset and prepare for a fresh start. The New Year offers a clean slate, making it the perfect time to reflect, reorganize, and refocus your goals. By dedicating some time to the right activities now, you can set yourself up for success in the months ahead. Here are four key steps to help you start the New Year on solid footing. Step 1: Reflect on the Past Year As the calendar flips to a new year, many of us naturally find ourselves looking back at the previous 12 months. This is the perfect moment to assess your professional and personal accomplishments, challenges, and growth. Ask yourself: • What were my biggest successes this year? • What goals did I miss, and why? • What strategies or habits worked well for me? • Where can I improve moving forward? Reflection isn’t just about identifying wins and losses; it’s about understanding the “why” behind them. Seek feedback from colleagues, mentors, or trusted peers to gain new perspectives. The more honest and thorough your evaluation, the more valuable it will be as a foundation for future planning. Step 2: Create a Game Plan for the Year Ahead Reflection is only the beginning. To make real progress, you need a clear and actionable plan for the year ahead. Start by defining your big-picture goal for the next 12 months. What’s the most important outcome you want to achieve? Once you have that, break it down into smaller, measurable objectives. For example, if your goal is to expand your business, your smaller objectives might include increasing marketing efforts, attending networking events, or launching a new service. Outline the steps needed to achieve each objective and set realistic timelines for completion. Revisit your goals regularly—at least quarterly—to ensure you’re staying on track or to adjust for any changes in your circumstances. Flexibility is key to maintaining momentum throughout the year. Step 3: Declutter Your Inbox An overflowing email inbox can be a constant source of low-grade stress. Ending the year with a streamlined and organized inbox can give you a fresh sense of control as you head into January. Here’s how to tackle it: • Respond immediately to any urgent or unresolved messages. • Delete emails that are no longer relevant. • Unsubscribe from newsletters or mailing lists you no longer find useful. • Create folders and filters to better organize incoming messages moving forward. To keep your inbox manageable, schedule regular cleanups throughout the year. Whether monthly or quarterly, these maintenance sessions will prevent clutter from building up again. Step 4: Knock Out Small Tasks The small, unfinished tasks lingering on your to-do list can be more draining than you realize. Use this time to cross off as many as possible before the New Year begins. • File paperwork that’s been piling up. • Respond to emails you’ve been avoiding. • Wrap up loose ends on ongoing projects. Completing these small but nagging tasks will give you a sense of accomplishment and free up your mental bandwidth for bigger goals in the New Year. Starting January with a clean slate will allow you to hit the ground running. Your Fresh Start A new year is a chance to realign your priorities, set meaningful goals, and approach your work with renewed focus. By reflecting on the past year, setting actionable goals, decluttering your space, and tying up loose ends, you’ll create the foundation for a successful year ahead. Whether you spread these steps out over a few weeks or tackle them all in one day, the most important thing is to commit to the process. A little effort now can make a big difference in how you start the year—and how you finish it. Here’s to making the most of your fresh start!