On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) announced a major shift in beneficial ownership reporting under the Corporate Transparency Act (CTA). Effective immediately, 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. This change significantly reduces compliance burdens for domestic businesses while maintaining reporting requirements for foreign entities operating in the U.S.
The key takeaways include:
- U.S. Companies Exempt from BOI Reporting: Domestic entities formed in the U.S. no longer need to file beneficial ownership reports with FinCEN.
- 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 Deadlines for Foreign Reporting Companies
While U.S. businesses benefit from the removal of BOI reporting requirements, foreign companies must stay compliant with new deadlines. According to FinCEN:
- 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 eliminates the burden of BOI reporting, reducing compliance costs and administrative work. However, foreign companies operating in the U.S. must ensure they meet the new reporting deadlines to avoid penalties.
At Parasec, we remain committed to keeping you informed about regulatory changes that impact business compliance. If you need guidance on entity formation, corporate compliance, or navigating FinCEN’s reporting rules, our experts are here to help.