Contractor reporting requirement back in effect — for now
Following a previous block, qualifying U.S. businesses are again required to file beneficial ownership reports by March 21
Image: AP Photo
Certain U.S. businesses are again required to submit ‘beneficial ownership information’ to the government, after a federal court on Tuesday lifted a previous block on a 2021 law.
Why it matters: The requirement affects over 30 million U.S. businesses, including many contractors — those with fewer than 20 employees or less than $5 million in annual revenue.
What’s happening: Dubbed the ‘Corporate Transparency Act,’ the law was introduced to crack down on money laundering, initially requiring businesses to submit beneficial ownership reports — personal information of owners with more than a 25 percent stake — by January 1, 2025.
- The measure immediately faced legal challenges, and a court in December 2024 blocked it from taking effect, saying it would burden small businesses.
- On Tuesday, that block was lifted, and qualifying businesses must now file by March 21.
- Details
What to watch: While technically back in effect, the group overseeing the law this week noted that over the next 30 days, it will “assess its options to further modify deadlines.”
- Separately, legislation introduced on February 10 to extend the deadline by a year, to January 1, 2026, is now making its way through Congress.
Keep reading
Organic lead volume pops 26% in Q1, analysis shows
Organic lead volume and average tickets grew in Q1, while customer acquisition costs fell, per an analysis of 100 contractors' marketing data
Homepros: July 2025 Update
A high-level snapshot of what's happening in Homepros-land
Ferguson posts $31 billion year, sees labor shortage as opportunity
Last week, CEO Kevin Murphy suggested that the labor environment in the skilled trades presents an opportunity for Ferguson, particularly due to its scale
