FINCEN (Financial Crimes Enforcement Network) recently announced on Friday, March 21st, 2025 that All entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to FinCEN. Existing foreign companies that must report their beneficial ownership information have at least an additional 30 days from the date of publication of the interim final rule. For more information, see press release and alert. (Resource FINCEN)

Previous Guidance from FINCEN (Financial Crimes Enforcement Network)

FINCEN (Financial Crimes Enforcement Network) previously announced on February,19th, 2025 that the mandate requirements for (CTA) Corporate Transparency Act, (BOI) Beneficial Ownership Information has been put back into effect, with the new deadline of Mar. 21st, 2025 for applicable small businesses.

Then on Thursday February 27th, 2025 of which FINCEN announced, there will be no issuance of penalties, fines and any other enforcement acts brought against small businesses that fail to submit or update BOI filing based on CTA current deadlines.

Background of the Corporate Transparency Act

In 2021, Congress passed the Corporate Transparency Act (CTA) on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. Learn more about CTA.

AS OF TODAY

• Companies within the United States are exempt from the BOI reporting requirement

• Foreign companies are required to comply with the BOI reporting requirement

FILING (BOI) Beneficial Ownership Information

Foreign companies have an additional 30 days from the date of publication of the interim final rule.

BOI has been a bit of a headache for many small business owners as there has been a constant back and forth with whether or not BOI is required and the enforcement of penalties for failure to report within the allotted timeframe. Now with the recent announcement, the BOI filing requirement is now required for foreign companies only.

Get caught up on what previously occurred with BOI. Read our previous FINCEN BOI blog post – Click Here

Until Next Time,

Trina H|GET AROUND TOWN