Beneficial Ownership Reporting Is Over for U.S. Companies

The Corporate Transparency Act, passed in 2021, required most small companies to report their beneficial owners, the humans who ultimately own or control them, to the Treasury Department's Financial Crimes Enforcement Network (FinCEN). It was projected to cover more than 30 million entities, including most LLCs and small corporations.

Then came two years of litigation, injunctions, stays, and rule changes. That period is now over.

The current position

It is settled, and by final rule rather than a temporary one.

FinCEN first removed the requirement for domestic companies through an interim final rule in March 2025. That interim status is what kept the question open for another year. On August 14, 2026, a final rule took effect that makes the exemption permanent.

The rule works by redefining who has to report at all. A "reporting company" now means only an entity formed under the law of a foreign country that has registered to do business in a U.S. state or tribal jurisdiction. Entities formed in the United States, previously called "domestic reporting companies," are outside the definition entirely.

For a typical California LLC or corporation, there is no federal BOI filing obligation, and no deadline to track.

FinCEN has also said it will delete beneficial ownership information already reported by U.S. persons who are now exempt.

What still applies

Foreign-formed entities registered to do business in the United States remain reporting companies and must still report beneficial ownership information for their foreign beneficial owners. If you hold an entity formed outside the U.S. and registered in California, this rule did not end your obligation.

Two things that did not go away

The scam letters. The two years of reversals created an industry of official-looking notices demanding BOI filing fees. FinCEN has never charged a filing fee and does not send unsolicited demands for payment. Any letter asking for money to file a BOI report is not from the government, and it is not made legitimate by the fact that reporting once existed.

State-level reporting. Several states have moved to create their own beneficial ownership regimes. The federal rule says nothing about those. Businesses holding entities in multiple states should check state requirements separately.

The practical takeaway

If your entities were formed in the United States, there is nothing to file and nothing to calendar. Ignore any letter that says otherwise and asks for a fee. If you hold a foreign-formed entity registered here, you are still a reporting company, and that is now the only category that matters.