Domestic Companies Are No Longer Subject to Beneficial Ownership Reporting

Beneficial ownership information reporting requirements stem from the Corporate Transparency Act of 2019 (CTA), part of the Anti-Money Laundering Act of 2020. FinCEN, a bureau within the U.S. Treasury Department, was charged with implementing aspects of this law, which led to the issuance of beneficial ownership information reporting requirements.

The purpose of beneficial ownership reporting was to help prevent the creation of anonymous shell companies, to help prevent money laundering and to curtail other financial crimes by requiring those with control over businesses or legal entities to provide identifying information.

Originally, the beneficial ownership rule applied to most businesses in the U.S. other than domestic sole proprietorships, including domestic reporting companies and foreign reporting companies. However, the rule faced many challenges, delays, changes and oppositions.

On March 21, 2025, FinCEN ultimately removed beneficial ownership reporting requirements for all entities created in the United States, including domestic reporting companies. Existing foreign companies are still subject to the interim final rule.

Take the time to educate yourself about your business’s obligations and filing requirements under the CTA and consult your legal counsel if you have questions about your company’s compliance requirements.

This article was originally published on June 23, 2023 and most recently updated on April 4, 2025.