Town staff warns small businesses about changing federal beneficial‑ownership filing rules

Town staff briefed the council on the recent national developments affecting the federal Beneficial Ownership Information (BOI) filing requirement and urged local businesses to monitor the situation.

Staff said the BOI filing requirement had been subject to litigation and temporary injunctions: it was blocked, then reinstated in late December and then again affected by court action through Dec. 27 (per staff’s account). Staff advised that, at the time of the meeting, the filing requirement was not active "this very moment," but cautioned that the rule could change again. For local small businesses that do not object to filing, staff recommended filing to avoid potential penalties if the rule is reinstated; staff warned that failing to file could trigger the $591‑per‑day penalty noted in federal guidance if the rule is later enforced.

Why it matters: Leonardtown small businesses, HOAs, and other entities that may be required to file should track federal developments and consult counsel if unsure. Staff offered to assist and recommended contacting the town for updates.

Ending: Staff said they will continue to track the BOI litigation and will provide updates to the business community and council as federal court rulings or administrative guidance change.