The Corporate Transparency Act (CTA), a bipartisan law passed by Congress in 2021 to curb illicit finance, required many companies doing business in the United States to report information about who ultimately owns or controls them to FinCEN (Financial Crimes Enforcement Network), which is part of the U.S. Treasury Department.  On March 21, 2025, FinCEN issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.

Only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly known as “foreign reporting companies”) are still required to comply with the law.

Note: The underlying CTA statute remains in place, which means that a future administration could change the reporting requirements or definitions.  Only Congress or the courts can change the statute.

Clients note that filing a BOI report is easy.

Most Alabama SBDC clients have reported that the BOI is a straightforward process. To file a Beneficial Ownership Information report, small business owners will need to provide information about the reporting company, beneficial owner and company applicant.  But if you have questions, your local SBDC Business Advisor would be glad to help.

This will include date of birth, the legal name of your business and Doing Business As name, address, jurisdiction of where the business was formed or registered, and the Tax Identification Number.

Who is a beneficial owner?

The CTA defines a beneficial owner as an individual who, directly or indirectly, exercises substantial control over a reporting company, or who owns or controls at least 25% of the ownership interests of a reporting company.

Is my small business a reporting company?

Reporting Companies fall under two categories: domestic reporting companies and foreign reporting companies. Both types of reporting companies must file a BOI report. Your small business may be a domestic reporting company if:

• The business is a corporation, OR
• The business is a limited liability company (LLC), OR
• The business was created by the filing of a document with a secretary of state or any similar office under the law of a State or Indian Tribe.

Your small business may be a foreign reporting company if the business was registered to do business in any U.S. State or Tribal jurisdiction by filing a document with a secretary of state or similar office of the State or Tribe.

How do I know if I have to file a BOI report?

A key factor that will determine whether you have to file a Beneficial Ownership Information report is whether you had to file a document with your state’s secretary of state or a similar office to create your company. This also applies to foreign companies that register to do business in the United States.

Do I need to report company applicants?

Only businesses registered on or after January 1, 2024 are required to report their company applicants on the BOI report.  

There can be up to two individuals who qualify as company applicants. That includes the individual who first registered or created the reporting company, and the person who is primarily responsible for the filing of the document that creates or registers the company.

Do I qualify for an exemption?

Certain businesses qualify for an exemption to file a BOI report, including:

• Securities reporting issuer
• Governmental authority
• Bank
• Credit union
• Depository institution holding company
• Money services business
• Broker or dealer in securities
• Securities exchange or clearing agency
• Other Exchange Act registered entity
• Investment company or investment adviser
• Venture capital fund adviser
• Insurance company
• State-licensed insurance producer
• Commodity Exchange Act registered entity
• Accounting firm
• Public utility
• Financial market utility
• Pooled investment vehicle
• Tax-exempt entity
• Entity assisting a tax-exempt entity
• Large operating company
• Subsidiary of certain exempt entities
• Inactive entity

When is the deadline to submit a BOI report?  *See update above; domestic companies do not need to submit a report.

If your small business was created or registered before January 1, 2024, you have until January 1, 2025 to submit a Beneficial Ownership Information report. This gives you a year to get acquainted with the rule, get in touch with FinCEN with any questions you may have, and attend one of their upcoming educational events.

If your small business is created or registered between January 1, 2024 and January 1, 2025, you have 90 days to file a Beneficial Ownership Information report. Small businesses created after January 1, 2025 will have 30 days to file.

Who will have access to my information?

Beginning February 20, 2024, FinCEN will provide access to BOI reporting data in phases to authorized government agencies, financial institutions and foreign government agencies that meet the requirements of the Access Final Rule. FinCEN will begin working with such agencies and entities to ensure BOI data is protected by creating new mechanisms and standards to protect sensitive information. For more information about the Final Rule, click here.

Will FinCEN send me correspondence to file a BOI report?

No, the agency won’t be reaching out to small business owners via phone, text or email. FinCEN has been notified of an uptick in fraudulent activity, so please refrain from clicking on links or scanning QR codes within alleged correspondence from FinCEN.

FinCEN has developed a number of resources to help businesses comply with the new requirement, including a Small Entity Compliance Guide. You may also review their quick FAQ on Key Reporting Questions or get in contact directly with FinCEN.