A NOTE FROM FRANCES
Corporate Operations Manager
Late last month, the Financial Crimes Enforcement Network (FinCEN) announced a sweeping change to beneficial ownership reporting requirements under the Corporate Transparency Act (CTA). As of March 21, 2025, U.S. companies and individuals are no longer required to submit beneficial ownership information (BOI) to FinCEN. Instead, these reporting obligations will apply only to foreign entities registered to do business in the United States.
This change significantly reduces the compliance burden for domestic businesses while maintaining reporting requirements for foreign entities operating within U.S. borders. Here’s what you need to know:
- U.S. businesses are now exempt from BOI reporting.
- Non-exempt foreign companies must still comply with FinCEN’s reporting requirements.
- U.S. individuals who are beneficial owners of foreign entities are also exempt.
For non-exempt foreign companies, new deadlines are in place:
- Entities registered before the interim final rule (published on March 21, 2025) must file BOI reports within 30 days.
- Entities registered on or after the interim final rule publication date have 30 days from the effective date of registration to submit their initial BOI report.
For U.S.-based businesses, this update brings a welcome reprieve from complex reporting obligations, reducing both administrative strain and compliance costs. However, foreign entities must remain diligent to ensure timely filings and avoid penalties. Parasec remains dedicated to assisting non-exempt foreign entities doing business in the U.S. with their BOI report filings.
At Parasec, we understand that regulatory shifts like these can be complex. As always, we are here to provide clarity and guidance. If you have questions about entity formation, corporate compliance, or navigating FinCEN’s evolving rules, our team is ready to help.
Stay informed, stay compliant, and as always, thank you for trusting Parasec as your compliance partner.
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Industry News
California: New Entity Number Format for Business Filings
On February 25, 2025, the California Secretary of State introduced a revised entity number format applicable to corporations, limited liability companies (LLCs), and limited partnerships (LPs). This change will not affect entity numbers assigned before the implementation date, nor will it alter the numbers of entities undergoing a continuing conversion, such as a corporation converting to an LLC or LP.
Under the new format, entity numbers will begin with the letter “B,” followed by the year of issuance and a unique seven-digit identifier (e.g., BYYYY#######). While the filing process remains unchanged, businesses conducting searches on the California Secretary of State’s online portal must include the “B” prefix to retrieve accurate results
Delaware: Alternative Entity Tax Requirements for LLCs, LPs, and GPs
If your business operates in Delaware as an LLC, LP, or GP—domestic or foreign—you must pay an annual $300 tax by June 1. This tax applies regardless of when your entity is active during the year, and there is no proration.
Failure to meet the deadline may result in a $200 penalty, 1.5% monthly interest, and the risk of losing good standing status. If Paracorp is your registered agent and you’re not enrolled in our Managed Annual Report Services (MARS), you’ll receive a reminder with payment instructions. For MARS clients, we handle the filing process, so you don’t need to worry about deadlines.
To pay online, visit the Delaware Division of Corporations Payment Portal here: Delaware Division of Corporations Online Payment. For assistance or to learn more about our registered agent services and MARS program, contact us at paracorp@myparacorp.com.
Federal: REAL ID Requirement Takes Effect May 7, 2025
Beginning May 7, 2025, a REAL ID-compliant driver’s license or identification card (or another federally approved document, such as a passport) will be required to:
- Board domestic commercial flights
- Enter federal buildings and military bases
The REAL ID Act, passed by Congress in 2005, established stricter security standards for state-issued identification to enhance national security and prevent identity fraud.
A REAL ID-compliant license or ID can be identified by a gold star in the top right corner. If your current ID does not have this star, you will need to update it. To obtain a REAL ID, visit your local Department of Motor Vehicles (DMV) with the necessary documents. Since requirements may vary by state, checking with your state’s DMV in advance is recommended.
Florida: Annual Report Reminder
Florida businesses, including profit corporations, LLCs, LPs, and LLLPs, must file their annual reports by May 1, 2025 to avoid a $400 late fee. To prevent administrative dissolution, reports are due by the third Friday in September. The Florida Department of State will send a filing confirmation to the email address on file. Be sure to update your contact information to receive important notifications.
Kansas: Information Report Deadline
The Kansas Secretary of State requires businesses to submit an Information Report (formerly the annual report) every two years. For-profit businesses must file by April 15th of their designated odd or even year, while not-for-profit businesses must file by June 15th. Businesses formed in even years file in succeeding even years, and those formed in odd years file in succeeding odd years. A three-month grace period is allowed; after this, businesses will be unable to file any documents with the state until their report is submitted and the entity is reinstated.
Maryland: Annual Report Reminder
All business entities formed, qualified, or registered to do business in Maryland must file an annual report every year. All business entities should file their 2025 reports on or before April 15, 2025. Extension requests may be submitted online through the SDAT website. If an extension request is approved, the filing due date is June 16.
New Jersey: Mobile Business Watch Program
The New Jersey Secretary of State’s Division of Revenue and Enterprise Services is offering a free Mobile Business Watch service for business owners. By signing up, you’ll receive notifications via text, push, or email about any changes to your company’s records in the state’s commercial registry. This program helps protect against unauthorized modifications to your business’s corporate information. If you receive an alert about suspicious activity, you can contact the division for assistance. The program also reminds business owners about deadlines for some filings and taxes. Learn more and sign up here.
South Dakota: Increases in Business Filing Fees with New Legislation
On March 11, 2024, South Dakota Governor Larry Rhoden signed House Bill 1024 into law, introducing increases to various business filing fees administered by the South Dakota Secretary of State. Effective July 1, 2025, the legislation raises the costs associated with filing annual reports and amended annual reports. Additionally, the bill implements an increase in late fees for delinquent annual reports, further emphasizing the importance of timely compliance. The bill text can be accessed here.
Service Spotlight
Independent Director Services
When your business requires an independent director or springing member, choosing the right partner is crucial. At Parasec, we provide dependable, professional service to keep your transactions on track. Here’s what you can expect when you appoint Parasec:
- Fast Turnarounds: We’ll have your independent director in place quickly, ensuring your business transaction stays on track.
- Transparent Pricing: Competitive, customized pricing with no hidden fees—just the support you need.
- Experienced Professionals: With over a decade of experience, we deliver reliable and unbiased service, giving you peace of mind.
Trust Parasec for independent director and springing member services. Contact our team at SMID@parasec.com to learn more!
Client Testimonial
“I have always had great customer service dealing with Parasec. As an owner of a company I deal with several third party vendors. I would put Parasec at the top of the list in terms of customer service. Could not be more pleased.”
~ Ryan B., Partner