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): companies formed in the US are no longer considered reporting companies, meaning they are currently not required to file beneficial ownership information (BOI) at the federal level. Under this most recent 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 monitoring changes to both the federal and state regulations nationwide and have adapted our solutions to meet the next wave of reporting challenges.

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

Even before the federal government stepped back from enforcing BOI reporting for companies formed in the US entities, many states were exploring or advancing their versions of corporate transparency laws. For instance, New York, South Dakota, and Washington, D.C. and all have BOI disclosure requirements, 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

BOI reporting is not going away. The future of BOI is at the state level. Certain states have already enacted BOI regulations, and several others are currently considering legislation. With so many federal and state changes, we’ve expanded our BOI Reporting Service to cover all BOI regulations at no additional cost to our clients. 

In addition to the federal regulations, we are now tracking state requirements nationwide and completing any filings that your business needs. As part of the annual subscription, clients receive:

• Federal requirements monitoring and filing
• State requirements monitoring and filing
• SOC-2 Compliant storage of your data
• Up to 4 filings per year, federal and/or state

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, for the time being, 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.