Big changes are coming to how businesses report ownership information. If you own a small business or are active in real estate, this is especially important for you! Starting March 1st, 2026, the Financial Crimes Enforcement Network (FinCEN) is implementing new beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA).
What is BOI Reporting and Why is it Happening?
In a nutshell, BOI reporting requires certain companies to disclose information about the individuals who ultimately own or control them. Think of it as pulling back the curtain to reveal the “beneficial owners”—the real people who profit from or direct a company, even if they are behind layers of legal entities.
The primary purpose of this initiative is to combat illicit financial activities like money laundering, terrorist financing, and tax fraud. By making ownership more transparent, FinCEN aims to make it harder for bad actors to use shell companies to hide their identities.
Who Does This Affect? “Reporting Companies”
The new rules primarily affect what FinCEN calls Reporting Companies. This broadly includes:
- Domestic Reporting Companies: Any corporation, LLC, or other entity created by filing a document with a Secretary of State or similar office. This covers the vast majority of small businesses.
- Foreign Reporting Companies: Any entity formed under the law of a foreign country that is registered to do business in any U.S. state.
In simpler terms: If you’ve registered your business with your state (like forming an LLC for a rental property), you are likely a Reporting Company.
Who Doesn’t This Affect? The Exemptions
Good news! Not every company needs to report. FinCEN has identified 23 specific types of entities that are exempt. These generally apply to larger, more regulated entities that already report ownership information to other authorities.
Common exemptions include:
- Large Operating Companies: Companies with more than 20 full-time U.S. employees and over $5 million in gross receipts.
- Publicly Traded Companies.
- Financial Institutions: Banks, credit unions, and insurance companies.
- Tax-Exempt Entities: Certain non-profits and charities.
If your business doesn’t fit one of these 23 categories, you will likely need to comply.
Your Title Company is Here to Help
One of the most important things to know is that you don’t have to navigate this alone. Your title company will be responsible for handling this reporting during your transactions. They are equipped to ensure the necessary information is collected and submitted accurately, taking the technical burden off your shoulders during a real estate closing.
Your Next Steps
Even with a title company’s support during a sale, it is vital to stay informed to ensure your LLCs and businesses remain in good standing. To stay ahead of the curve, you should:
- Confirm if your company is a “Reporting Company.”
- Identify who your “beneficial owners” are.
- Reach out to your professional team to plan your filing strategy.
Navigating the legal side of real estate and business ownership can be tricky, but I’m here to point you in the right direction.
If you have questions about how these new FinCEN requirements might impact your real estate LLCs or small business? Reach out, I’d love to be a resource for you or connect you with a local professional to consult with.