BOI Reporting Requirements: What You Need to Know
Since taking effect on January 1, 2024, the legal status of the Corporate Transparency Act (CTA) has fluctuated, creating uncertainty among business owners, attorneys, and tax professionals about the reporting obligations. On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) announced a major shift in beneficial ownership reporting under the CTA. With the announcement of FinCEN’s latest interim final rule (IFR), U.S. companies and individuals are no longer required to submit beneficial ownership information (BOI) to FinCEN. Moving forward, only foreign entities registered to do business in the U.S. must comply with BOI reporting requirements.
Key Updates
- U.S. Companies Exempt from BOI Reporting: Entities formed in the U.S. are no longer required to submit BOI reports.
- Foreign Companies Still Required to Report: Only foreign entities registered to do business in the U.S. are subject to FinCEN’s reporting requirements.
- U.S. Beneficial Owners No Longer Have Reporting Obligations: U.S. individuals who are beneficial owners of foreign entities are also exempt.
New Deadline for Foreign Reporting Companies
For foreign entities that qualify as reporting companies, FinCEN has established new deadlines:
- Entities registered before the publication of the interim final rule (IFR) must file BOI reports within 30 days.
- Entities registered on or after the IFR publication date must file an initial BOI report within 30 days of receiving notice that their registration is effective.
What This Means for Businesses
For U.S.-based businesses, this rule removes the burden of BOI reporting, lowering compliance costs and administrative demands. However, foreign companies operating in the U.S. that meet the updated criteria must adhere to the new reporting deadlines to avoid penalties. As noted earlier, U.S. individuals associated with these entities are not required to submit their beneficial ownership information.
FinCEN’s official announcement is available here. To review the full text of the interim final rule, click here.
Ready to File Your BOI Report?
Parasec is dedicated to assisting non-exempt foreign entities doing business in the U.S. with their BOI report filings. Our secure and efficient online platform simplifies the process, whether you’re filing for the first time or updating existing information. With our streamlined approach, you can ensure fast, compliant submissions with ease.
Benefits of Using Parasec for BOI Reports
- BOI Report Dashboard: Easily access, update, and manage BOI reports in one place.
- Save Progress & Resume Later: Collect data at your own pace without losing work.
- Filing Confirmation: We provide a confirmation of submittal once your BOI report is successfully filed with FinCEN.
- Data Security: We utilize industry standards to ensure security and redact sensitive information in our BOI software.
- Expert Support: Our customer support team is available during regular business hours. You will always speak to a professional, polite, and knowledgeable person who cares about your business.
Get Ready to File Your BOI Report
To ensure a smooth filing process, we suggest using our BOI Filing Prep Checklist to gather all necessary documents.
If you have any questions or are ready to file, contact our BOI compliance specialists today.
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