Big Update: U.S. Companies Are Now Exempt from BOI Reporting, New Deadlines Set for Foreign Entities

reading time: 11 minute(s)

BOI reporting has been a huge topic since FinCEN rolled out the Corporate Transparency Act, requiring businesses to disclose ownership details. Over the past year, many businesses in the U.S. have been preparing to meet these requirements, making sure they stay compliant. But now, there’s a game-changing update!

On March 21, 2025, FinCEN announced that U.S. companies and U.S. persons no longer need to file BOI reports. Yes, you read that right—if your business was previously considered a “domestic reporting company,” you’re officially exempt from the BOI filing requirements! However, foreign entities still have reporting responsibilities, and there are new deadlines to keep in mind.

Let’s break down what’s changing and what it means for businesses moving forward.

FinCEN’s Latest Announcement on BOI Reporting

FinCEN has issued an interim final rule that completely removes the requirement for U.S. companies and individuals to report their beneficial ownership information (BOI). This change follows the Department of the Treasury’s announcement on March 2, 2025, and marks a major update in BOI reporting rules.

Before this, both U.S. and foreign businesses that met certain criteria had to submit BOI reports. However, with this change, only specific foreign entities are now required to submit the BOI report.

No More BOI Reporting for U.S. Companies!

If your business was formed in the U.S., you’re now exempt from submitting the BOI reports to FinCEN. This includes all companies previously classified as domestic reporting companies under the FinCEN definition.

This also means that:

• U.S. persons who own businesses (including shares in foreign companies) don’t need to file BOI reports.
• FinCEN will not impose penalties or fines on U.S. businesses or citizens for not filing BOI reports.

This update brings significant relief for many small businesses worried about compliance and the late filing penalties.

Foreign Entities Still Need to File BOI Reports

While U.S. companies get a break, certain foreign entities still have to report. According to FinCEN’s update, a reporting company is now defined as a business that:

• Was formed in a foreign country
• Has registered to do business in the U.S. by filing with a state or tribal office

If your business falls under this definition and doesn’t qualify for an exemption, you must report your BOI details to FinCEN. 

New BOI Reporting Deadlines for Foreign Entities

Along with these changes, FinCEN has set new deadlines for foreign businesses that qualify as reporting companies:

• If a foreign entity was registered before the interim final rule was published, it must submit the BOI report within 30 days from the publication date.
• If a foreign entity registers on or after the interim final rule publication date, it has 30 calendar days from the date its registration becomes effective to file an initial BOI report.

These deadlines clearly indicate that foreign companies doing business in the U.S. must stay on top of their reporting requirements.

What This Means for Businesses

This announcement brings significant relief to U.S. businesses that were previously required to file BOI reports. Many small businesses and startups have raised concerns about the complexity of compliance, and FinCEN’s decision eliminates this challenge for them.

However, compliance remains a priority for foreign companies operating in the U.S. If your business falls into this category, it’s crucial to stay on top of the new deadlines and file reports on time to avoid any issues.

Conclusion

With this latest FinCEN update, U.S. businesses no longer have to worry about BOI reporting. However, if you operate a foreign company registered in the U.S., the new reporting requirements still apply to you. It’s important to stay informed and file on time to avoid penalties and ensure compliance with FinCEN’s rules. Here’s where TaxBandits comes in!

TaxBandits provides a user-friendly interface and reliable solutions that streamline the entire BOI reporting process without any unnecessary complications. Our software, built with advanced technology and strong database management, keeps sensitive information secure.