May 2, 2025

In a significant regulatory shift, the Financial Crimes Enforcement Network (FinCEN) has removed the requirement for U.S. companies and U.S. persons to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA). This change, announced on March 21, 2025, aims to streamline compliance and reduce the burden on domestic entities.

Key Highlights:

Exemption for Domestic Entities: All entities created in the United States, previously classified as "domestic reporting companies," are now exempt from BOI reporting requirements.
Focus on Foreign Entities: The revised definition of "reporting company" now applies exclusively to entities formed under foreign laws that have registered to do business in the U.S. These entities are still subject to BOI reporting.
Updated Deadlines for Foreign Companies:
- Foreign entities registered before March 26, 2025, must file BOI reports by April 25, 2025.
- Those registering on or after March 26, 2025, have 30 calendar days from the effective date of registration to file their initial BOI report.

Stay Informed and Compliant:

While this exemption eases the reporting burden for many, it's essential to stay updated on regulatory changes that may affect your business. FinCEN continues to adjust its rules to balance transparency with practical compliance measures.

Need Assistance?

At McDonald Fleming Attorneys at Law, we're committed to helping our clients navigate the evolving legal landscape. If you have questions about how these changes impact your business or need guidance on compliance matters, contact us today.

For guidance on submitting your report visit our Guide to Beneficial Ownership Information (BOI) Reporting. Stay tuned to our news page for further updates on the CTA and other legal developments that could impact your business.

For more detailed information, visit FinCEN's official page on Beneficial Ownership Information Reporting: FinCEN.gov