Maryland Attorney General Clarifies: Filing BOI Reports Is Not Unauthorized Practice of Law

In a significant advisory opinion, the Maryland Attorney General’s Office has addressed a crucial issue for businesses and financial professionals: whether the filing of Beneficial Ownership Information (BOI) reports constitutes the unauthorized practice of law. This clarification provides much-needed guidance for entities navigating compliance with the Corporate Transparency Act (CTA) and state regulations.?

Understanding the Core Issue?

The question at the heart of this ruling is whether non-lawyers, such as accountants, compliance officers, or business service providers, can assist clients with filing BOI reports without engaging in the unauthorized practice of law. The Maryland Attorney General’s Office has clarified their position, that preparing and filing common forms such as BOI reports, as mandated by FinCEN under the CTA, does not require legal expertise and therefore does not constitute the unauthorized practice of law.?

Why BOI Filing Is Not Legal Practice?

The advisory opinion distinguishes between legal advice and administrative compliance tasks. While legal professionals are required to interpret laws and provide legal guidance, the process of filing BOI reports involves collecting and submitting factual information, which does not require legal judgment. The Attorney General’s Office emphasized that the preparation and filing of these reports are administrative in nature and can be performed by non-lawyers without crossing the line into the unauthorized practice of law.?

Implications for Compliance Professionals and Businesses?

This ruling is particularly important for financial institutions, accountants, and compliance professionals who are often involved in the BOI reporting process. The Attorney General’s clarification reassures these professionals that they can continue to assist clients in fulfilling their BOI obligations without fear of legal repercussions. This is especially relevant as businesses strive to comply with both state and federal transparency requirements under the CTA.?

The Role of Legal Professionals?

While filing BOI reports does not require a lawyer, the Attorney General’s opinion also serves as a reminder that certain aspects of corporate governance and compliance may still necessitate legal advice. For instance, determining whether an entity qualifies as a "reporting company" or navigating complex ownership structures might require consultation with a legal professional. However, the routine task of filing BOI reports can safely be handled by non-lawyers.?

The Maryland Attorney General’s ruling provides clarity and confidence to those involved in the BOI reporting process. By confirming that the filing of BOI reports does not constitute the unauthorized practice of law, the opinion could open the door to allow businesses and compliance professionals to proceed with their reporting obligations without unnecessary concerns. At FinCEN Advisors, our platform is designed to guide clients through every step of the BOI reporting process, simplifying compliance while respecting the boundaries of legal practice.?

For further assistance with your BOI reporting needs, or to learn more about how these regulations may affect your business, contact FinCEN Advisors today.?

You Can Read the Official Opinion of the Maryland Attorney General here: https://www.marylandattorneygeneral.gov/Opinions%20Documents/2024/109OAG32.pdf