FINCEN BOI Report Rules
icon March 24, 2025
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Business Compliance, Accounting Services, Financial Reporting, Tax Regulations

👉 Big changes are here! The Financial Crimes Enforcement Network (FINCEN) just released updated BOI (Beneficial Ownership Information) reporting rules, effective March 21, 2025 — and there’s a major update: U.S. LLCs and Corporations are excluded from certain reporting requirements!

In this video, we’ll cover:

  • What the new FINCEN BOI rules mean for LLCs and Corporations
  • Which business structures are now excluded from reporting
  • How these changes impact compliance and filing requirements
  • Steps you need to take to stay compliant with the new regulations

💼 Who needs to file under the new rules?

If you own an LLC or Corporation, you need to know whether you’re affected by these new updates. Failing to comply with BOI requirements can result in significant fines and penalties — so don’t miss this important update!

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⚠️ DISCLAIMER

This video is intended for education purposes and should not be taken as legal, financial or tax advice.  You should consult with a professional about your unique situation before acting on anything discussed in these videos.  Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. are providing educational content to help small business owners and individuals become more aware of certain issues and topics, but it cannot give blanket advice to a broad audience.  Things are always changing, therefore, this channel may not contain the most up-to-date information.  Neither Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. nor its members can be held liable for any use or misuse of this content.

TRANSCRIPTION

On March 21st, 2025, FinCEN came out with the new rules for the FinCEN BOI report. The new rules are 36 pages long, but don’t worry, in this video, I’m going to talk about the seven things you must know about the new FinCEN BOI report rules. Let’s go.

So, hello from Freedom Group. We are a group of four companies that have been providing quality services now for over 20 years in the areas of taxes, immigration, insurance, financial planning, real estate, so we can help you in many, many ways. So, let’s go to the new FinCEN BOI news.

So, on March 21st, let me show you. On March 21st, this is directly from the FinCEN.gov website. Remember, FinCEN is the government agency that implements the BOI report.

This is the same website where you can do the FinCEN BOI report. Now, on March 21st, 2025, they came out with an interim final rule on the FinCEN BOI report. As you can see, these are the new rules.

As you can see, they are 36 pages long, all right? But don’t worry, you won’t have to read all of it because I’m going to give you the top seven things you must know in order to be compliant with FinCEN BOI report, all right? All right, so what you need to know is that basically FinCEN changed what is considered a reporting company, all right? So, number one, domestic companies or entities do not have to file the FinCEN BOI report. What does that mean? If your business was formed in any U.S. state, Florida, California, Wyoming, Delaware, New York, if your business was formed in any U.S. state, it doesn’t matter who the owners are. The owners can be U.S. persons, the owners can be foreigners.

If the company itself was formed in any U.S. state that is considered a domestic reporting company, those companies do not have to file the FinCEN BOI report, okay? Number two, only foreign companies need to file the FinCEN BOI report. What does FinCEN consider a foreign entity? Any foreign business, corporation, LLC that was formed under the laws and jurisdiction of a foreign country. So, if your business was formed in the U.K., if your business was formed in Canada, if your business was formed in Mexico, and now that foreign company is registering in the U.S. to do business in the U.S., that is a foreign reporting company, and they do need to file the FinCEN BOI report.

So, only foreign companies need to file the FinCEN BOI report. Now, eBay number three, eBay foreign entity has one or many U.S. persons as owners of the foreign entity. The information of the U.S. person’s owners don’t need to be included on the FinCEN BOI report.

The only persons that need to do the report are the foreign owners, okay? So, number four, if a foreign company is 100% owned by U.S. persons, then that foreign company does not need to file the FinCEN BOI report, okay? Also, number five, if a foreign company was registered to do business in the U.S. in 2024 or before, they now have 30 days to file the FinCEN BOI report if they haven’t done so. So, this was ruled out on March 21st, so technically these foreign entities have until April 21st, 2025 to file the FinCEN BOI report. Number six, if a foreign company registers to do business in the U.S. in 2025 or in the future, they will have 30 days to file the FinCEN BOI report from the moment they register in the U.S. And last, number seven, this may not be the end of new rules for the BOI, because as stated on the FinCEN website, FinCEN is accepting comments on this interim final rule and intends to finalize the rule this year.

So, that means that FinCEN may change the rules at some point in 2025, but this is the final rule up to that was released on the 21st of March. So, once again, if your business was formed in the U.S., it doesn’t matter who the owners are. The owners may be U.S. persons.

The owners may be non-residents. If the entity, the corporation, the LLC was formed in any U.S. state, you do not need to file the FinCEN BOI report. Only foreign companies need to file.

All right? So, we hope you have received valuable information in this video. If you have, like it and share it with another business owner that can take advantage of this information. Thank you for watching and God bless you. Bye-bye. – End of transcription

SUMMARIZATION

FINCEN BOI Report Rules changed significantly on March 21, 2025, introducing new compliance requirements that impact many entrepreneurs and established businesses alike. This update, which stretches across 36 pages, focuses on clarifying the obligations of domestic and foreign entities. Although the documents are lengthy, you can grasp the main points quickly. This post will highlight the crucial items you must know to stay compliant, and it will also introduce you to Freedom Tax Accounting, a firm dedicated to serving business owners with integrity and personalized care.

Domestic vs. Foreign Entities

The recent changes highlight that domestic entities formed under U.S. state laws, such as corporations or LLCs registered in Florida, California, Delaware, or any other state, are not required to file the FINCEN BOI Report. That means your company is exempt if it was formed in the United States, regardless of whether you have foreign or domestic owners. In other words, local businesses are effectively free from these new filing obligations.

Foreign entities, however, face new filing requirements. Any business formed under the laws of a foreign country that decides to register in the U.S. must file the FINCEN BOI Report. This filing applies if even one aspect of its formation is outside U.S. jurisdiction. U.K. corporations, Canadian LLCs, and other international enterprises need to pay close attention to these new rules. Interestingly, according to the U.S. Small Business Administration, over 600,000 new businesses are formed in the United States each year, and many are now exploring international expansion. When foreign companies own a portion of these ventures, they must consider the new reporting regulations.

Filing Deadlines

The updated FINCEN BOI Report Rules also establish new deadlines for foreign entities. If a foreign company was registered in the U.S. during 2024 or earlier and has not yet filed its FINCEN BOI Report, it must do so within 30 days of the rule’s effective date. That translates to an April 21, 2025 deadline for those companies. If a foreign business registers in 2025 or later, it must file within 30 days of its registration date. This accelerated timeline underscores the importance of proactive compliance.

Additionally, the rules confirm that if a foreign entity is fully owned by U.S. persons, it does not need to file. When foreign owners hold any stake, their information goes on the report. FINCEN clarified that only foreign owners of the business must disclose their details. U.S. owners of a foreign entity are exempt from listing their data in the FINCEN BOI Report. These distinctions aim to simplify disclosures while ensuring accurate data collection for regulatory purposes.

Potential Future Updates

Although these are called “final rules,” FINCEN has indicated that further revisions may arise. The March 21 guidelines are described as an interim final rule. FINCEN is accepting public comments and could amend the regulations this year. Therefore, businesses should stay informed about ongoing changes. You can follow official updates at https://www.fincen.gov. Because these regulations continue to evolve, it is wise to maintain a good relationship with a trusted advisor who understands the shifting tax and reporting landscape.

The Freedom Tax Accounting Advantage

Freedom Tax Accounting has served clients for over 20 years in the areas of taxes, immigration, insurance, financial planning, and real estate. Our firm originated during an economic downturn, yet we flourished because of our dedication to honoring God and supporting our community. Founded by Julian Vasquez and Irma Vasquez, Freedom Tax Accounting started by going door to door, gathering clients who saw the value of our caring and professional approach.

Today, our firm represents individuals and corporations across all 50 states. We have grown into a team of 13 professionals who offer graphic design, marketing consultation, and immigration services alongside our accounting practice. We believe that if we help our clients thrive, we thrive with them. We also take pride in providing a place filled with peace, rooted in our mission to honor God in all we do.

Conclusion

Staying on top of the FINCEN BOI Report Rules can protect you from penalties and help you build a compliant, resilient company. Domestic entities can breathe a sigh of relief, but foreign entities must take immediate action. If you own a foreign company registered in the United States, remember to file your FINCEN BOI Report within 30 days of registration. Check official government resources to stay updated on any new developments. In the meantime, a reputable firm like Freedom Tax Accounting can guide you through these complex regulations and ensure you remain compliant.

For additional guidance, consult these quality resources:

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