Major Shift in Beneficial Ownership Reporting: What Businesses Need to Know After the Latest Corporate Transparency Act Update

In March 2025, the Trump administration and the Department of Treasury announced a sweeping change to the Corporate Transparency Act (CTA): U.S.-formed companies are no longer considered reporting companies, meaning they are no longer required to file beneficial ownership information (BOI) at the federal level. Under this change, only companies formed in foreign countries that are foreign qualified to do business in the U.S. must submit BOI reports to FinCEN.

This historic regulatory update changes federal reporting obligations for millions of small businesses, but opens the door to significant state-level regulation.

At Harbor Compliance, we’re watching this shift closely and adapting our solutions to meet the next wave of reporting challenges.

The New Regulatory Landscape: Fewer Federal Filings, More State Rules?

Even before the federal government stepped back from enforcing BOI reporting for U.S.-formed entities, many states were exploring or advancing their versions of corporate transparency laws. For instance, Washington, D.C., already includes BOI disclosures in its biennial report filings, and others are poised to fill the gap left by federal deregulation.

The likely result? Businesses may soon be required to file beneficial ownership reports in every state where they operate, instead of through a single federal system. This could translate into:

• Up to 50 different state BOI filings, plus requirements for Washington D.C. and U.S. territories
• Diverse filing deadlines and renewal cycles
• Varying definitions of ownership, control, and reporting thresholds
• Different data security and submission protocols across jurisdictions

How Harbor Compliance Supports Your Business in This New Era

At Harbor Compliance, we understand how challenging it can be to navigate evolving regulatory requirements across state lines. That’s why we’ve proactively expanded our BOI Reporting Service to cover state-level filings as they become applicable.

Here’s what our customers can expect:

• Filing beneficial ownership reports in every state that implements BOI or CTA-equivalent rules (except for D.C., whose requirement is covered by our Managed Annual Report Service)
• Monitoring new laws and deadlines on your behalf
• Securely storing your ownership information for streamlined future filings
• Up to four filings per year are included at no additional charge under the $199 subscription

Our service provides peace of mind from knowing your business is meeting regulatory requirements, without the hassle of tracking every legislative update or filing deadline yourself.

Looking Forward: Stay Ahead with Harbor Compliance

While federal BOI reporting has been scaled back, state-level complexity is on the rise. Businesses will face a patchwork of new rules, and the cost of missing a filing or misunderstanding a requirement can be high.

With Harbor Compliance, you don’t need to worry. We’ll track the evolving regulations, file your reports on time, and keep your data secure.Learn more about our BOI Reporting Service and how we’re helping businesses prepare for this new era of state-based reporting.