BOI Reporting Is Dead: What FinCEN's NewRule Means for Your Business
LEGAL UPDATE
REGULATORY UPDATE
BOI Reporting Is Dead: What FinCEN's New
Rule Means for Your Business
August 2026 | A Legal Update from The Business Lawyers
After nearly two years of on-again, off-again enforcement, the federal beneficial ownership
reporting requirement is gone. Here's what actually changed, and what's still worth doing.
What Happened
On August 11, 2026, the Treasury Department's Financial Crimes Enforcement Network (FinCEN)
issued a final rule permanently removing the requirement for U.S. companies and U.S. persons to report
beneficial ownership information (BOI) under the Corporate Transparency Act (CTA). The rule took
effect August 14, 2026. FinCEN also announced it will delete previously reported information for U.S.
persons from its database.
This caps a long back-and-forth: the CTA's reporting requirement took effect in 2024, was challenged in
court, reinstated, narrowed by an interim rule in March 2025 that exempted domestic companies, and is
now permanently off the books for U.S. companies and U.S. persons.
What This Means for You
● If your company is formed in the U.S. and owned by U.S. persons, you no longer need to file or
maintain a BOI report with FinCEN.
● If you already filed a BOI report, you don't need to do anything further — FinCEN is removing that data
from its systems.
● The CTA itself remains on the books; this is a regulatory rule change, not a repeal by Congress. A
future administration or court ruling could theoretically revisit it, though that's not expected in the near
term.
The Exception: Foreign-Owned Entities and New York
The exemption applies to U.S. companies and U.S. persons. Entities formed outside the U.S. that
register to do business in a U.S. state still fall under the CTA's reporting requirements as “foreign reporting companies.”
Separately, New York's LLC Transparency Act — a state-level law modeled on the CTA — took effect
January 1, 2026. After a gubernatorial veto narrowed its scope, it now applies only to foreign LLCs (i.e.,
LLCs formed outside New York) that are authorized to do business in New York State. If you have an
LLC formed elsewhere and registered to do business in New York, this state filing obligation is separate
from the CTA and still applies.
Why this is still worth a conversation
Rules in this area have changed direction multiple times over the past two years. Keeping your
ownership and formation records current — regardless of what's required to be filed with a regulator
— remains good practice, and puts you in a strong position if the requirement changes again.
Questions About How This Affects Your Business?
Whether you have a foreign-owned entity, an LLC registered in New York, or just want to confirm
your filing obligations, The Business Lawyers can help you sort out what applies to your specific
situation. Reach out to talk it through.
This document is provided by The Business Lawyers for general informational purposes only. It does not constitute legal advice and does not create an
attorney-client relationship between you and The Business Lawyers or any of its attorneys. Laws vary by state and change over time; you should consult a
licensed attorney regarding your specific circumstances before acting or relying on this information.
