The Financial Crimes Enforcement Network (FinCEN) announced that U.S. companies no longer need to file Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act. This reporting rule took effect in 2024 but quickly faced scrutiny, leading to its removal.
Starting in 2024, most U.S. companies—especially small businesses—had to report details about their beneficial owners, including those with substantial control or a significant ownership stake. Lawmakers designed this requirement to combat financial crimes such as money laundering and fraud. However, strong opposition from business advocacy groups and legal challenges forced FinCEN to eliminate the rule.
What does this mean for your business? If you have not filed a BOI report, you no longer need to. If you already submitted one, FinCEN has not clarified whether it will delete or retain the information.
Again, this rule change is for entities created in the United States. Foreign entities still have a filing requirement.
This change marks a significant win for businesses. We will keep you updated on any further developments.