Updates to the Corporate Transparency Act
Major Changes: Domestic Companies No Longer Required to Report
As of March 21, 2025, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) implemented a significant change to the Corporate Transparency Act (CTA): now only foreign entities registered to do business in the U.S. are required to file Beneficial Ownership Information (BOI) reports. This is a major shift from the original requirement that included both domestic and foreign entities.
The change, enacted through an interim final rule, means that most U.S.-formed corporations, LLCs, and similar entities are no longer obligated to report under the CTA unless they are foreign entities registered to do business in the United States.
Who Must File Now?
The new rule narrows the scope of reporting companies to the following:
– Foreign entities (e.g., corporations or LLCs formed outside the U.S.) that are registered to do business in any U.S. state or tribal jurisdiction.
Domestic entities formed within the United States are now exempt from BOI reporting requirements under the CTA.
Key Filing Deadlines (as of July 2025)
– Foreign entities registered before March 21, 2025 must file their BOI reports within 30 calendar days of the interim rule’s effective date (March 21, 2025).
– Foreign entities registered on or after March 21, 2025 must file within 30 calendar days of their registration becoming effective.
No More U.S. Owner Reporting Requirements
Previously, U.S. persons with ownership interest in foreign entities were required to be reported in BOI filings. Under the revised guidance, U.S. persons are no longer required to be reported as beneficial owners of foreign reporting companies.
What Information Must Be Reported?
Foreign reporting companies must still disclose:
– The company’s full legal name and jurisdiction of formation.
– The business address.
– Information about each beneficial owner (full legal name, date of birth, residential address, and identifying document).
What Triggers a Required Update?
Any foreign reporting company must file an updated report within 30 calendar days if:
– There is a change in beneficial ownership.
– The company name or address changes.
– Any identifying document provided in a previous filing expires or is replaced.
Need Help Understanding Your CTA Reporting Obligations?
If you’re unsure whether your company still needs to file under the Corporate Transparency Act, contact LA Legal Solutionz for a consultation or visit /.
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