Massachusetts Considers State-Level Beneficial Ownership Reporting Requirements: What Businesses Need to Know

As federal beneficial ownership reporting requirements become more limited under recent changes to the Corporate Transparency Act (CTA), states are stepping up with their own legislation to fill the gap. Massachusetts is one of the latest states actively considering its own beneficial ownership information (BOI) reporting law. For business owners, this signals a shift toward more localized reporting obligations—and a need to prepare for a potential new layer of reporting. Harbor Compliance’s BOI Reporting Service is designed to help organizations navigate this evolving landscape with clarity, accuracy, and peace of mind.

Understanding the Proposed Massachusetts BOI Legislation

Although the specific bill number associated with Massachusetts’ beneficial ownership legislation—House Bill 3566—has been a source of confusion due to conflicting records, reliable sources confirm that the state is actively considering such a measure. If enacted, the legislation would require both domestic and foreign limited liability companies (LLCs) operating in Massachusetts to disclose their beneficial owners to the Secretary of the Commonwealth.

The bill is expected to define a “beneficial owner” similarly to the federal CTA—typically, an individual who holds at least 25% ownership interest or exercises substantial control over the business. However, state-level laws often include unique provisions, and Massachusetts appears poised to follow suit. One standout feature of the proposed legislation is that it would allow businesses to satisfy the state’s requirement by submitting a copy of their federal FinCEN BOI report—so long as the submitted information aligns with state criteria.

This dual-filing compatibility could streamline reporting requirements for businesses already meeting federal requirements. However, careful attention is still required to ensure that data reported to FinCEN meets Massachusetts’ expectations, and it doesn’t eliminate the need to stay alert to evolving state-specific rules.

What This Means for Businesses in Massachusetts

If Massachusetts enacts its BOI legislation, many businesses that are currently exempt from reporting under the revised federal CTA could soon find themselves subject to state-level filing requirements. Domestic and foreign LLCs operating in the Commonwealth may be required to submit detailed information on their beneficial owners, and depending on the final language of the bill, that information could be publicly accessible.

Interpreting and responding to these requirements can be challenging for small and mid-sized businesses without in-house legal advisors. Even for organizations that have already completed federal BOI filings, confirming that those filings align with Massachusetts’ standards may not be straightforward. The proposed law underscores the need for careful attention to state definitions, timelines, exemptions, and the mechanisms by which information is submitted and stored.

How Harbor Compliance Can Help

Massachusetts’ proposed BOI legislation reflects a broader movement toward localized transparency initiatives. Even if your business is currently exempt under federal law, that may not be the case for long. Proactive planning is key. Harbor Compliance is committed to supporting businesses through this uncertain and evolving regulatory environment. With our BOI Reporting Service, you can be confident that your reporting obligations—present and future—are covered.

Harbor Compliance’s BOI Reporting Service is designed to help businesses stay in good standing amid the fast-changing regulatory landscape. Whether your organization is subject to federal BOI filing, preparing for new state-level requirements like those proposed in Massachusetts, or both, our service simplifies the process end-to-end. Contact us today to learn more about how Harbor Compliance can help you stay ahead of BOI requirements and maintain your good standing across jurisdictions.