As of July 2026, most small businesses do not need to file a BOI report. A rule issued by FinCEN in March 2025 exempts every company created in the United States, along with its owners. Only certain foreign-formed companies registered to do business here still report.
This post is for Los Angeles small business owners who filed, meant to file, or heard warnings about beneficial ownership information and want a clear answer. We will cover what changed, who still reports, and what to do if you already filed.
Do you still need to file a BOI report in 2026?
For companies formed in the United States, the short answer is no. In March 2025, FinCEN issued an interim final rule that removed the reporting requirement for U.S. companies and U.S. persons under the Corporate Transparency Act. Therefore, corporations, LLCs, and similar entities created by filing with a secretary of state no longer file a beneficial ownership information report.
That is a large reversal. When the Corporate Transparency Act first took effect, tens of millions of small businesses were told they had to report. Many owners paid to file, and many more waited through a year of shifting court decisions. The current rule settles it for domestic entities: no filing required.
What changed with the FinCEN rule
The Corporate Transparency Act asked most small companies to report who owns and controls them. The goal was to give law enforcement a registry of beneficial owners. Then, on March 26, 2025, FinCEN narrowed the rule sharply.
According to FinCEN, the updated rule revises the definition of a reporting company. Here is the practical effect:
- Domestic entities are exempt. Any company created in the U.S. by filing with a state or Tribal office no longer reports.
- U.S. owners are exempt. U.S. persons do not report beneficial ownership, even for a foreign company they partly own.
- The definition narrowed. A reporting company now means only an entity formed under foreign law that registered to do business in a U.S. state.
In other words, the filing survives only for foreign companies operating here. For the typical California LLC or corporation, the obligation is gone.
Who still has to file a BOI report
A narrow group still reports. You may fall inside it if your company was formed outside the United States and then registered to do business in a U.S. state or with a Tribal jurisdiction. FinCEN sets short deadlines for these foreign reporting companies:
| Situation | Filing deadline |
|---|---|
| Foreign company registered before the rule was published | Within 30 days of the publication date |
| Foreign company registered on or after the rule was published | Within 30 days of its registration notice |
Even then, these companies do not report any U.S. persons as beneficial owners. If your business was formed in California or any other state, none of this applies to you. When you are unsure how your entity is classified, confirm with your attorney or CPA before you assume anything.
What US small business owners should do now
Most owners can simply stop worrying about this filing. Still, a few practical steps keep you on solid ground:
- Do nothing if you are a domestic entity. No filing, no renewal, no annual update is required under the current rule.
- Keep proof if you already filed. Save the confirmation. You do not need to undo a report you submitted earlier.
- Ignore scare mail and filing fees. Some services still send official-looking notices demanding a BOI report and a fee. FinCEN never charges to file.
- Watch for future changes. This rule became final through an interim process, so the policy could shift again. We track these updates for clients.
Why bookkeepers pay attention to beneficial ownership
A bookkeeper does not file your BOI report, and this is not tax advice. However, compliance deadlines and clean records live in the same place. When a rule like this changes, owners often ask us whether it affects their books, their entity, or their filings. We keep a current view so you are not acting on last year’s headlines.
This is the same reason we watch payroll tax, sales tax, and 1099 rules for the businesses we support. For a related example, see our guide to the Los Angeles City Business Tax, another obligation that trips up new owners. If you want your compliance calendar handled alongside your monthly books, our team can help.
Frequently asked questions
Do I need to file a BOI report in 2026?
If your company was formed in the United States, no. The March 2025 FinCEN rule exempts all domestic entities and their owners. Only foreign-formed companies that registered to do business in a U.S. state still file a beneficial ownership information report.
What is beneficial ownership information?
It is the identity of the people who ultimately own or control a company, such as a name, birthdate, address, and an ID number. The Corporate Transparency Act created a registry of this data. Domestic companies no longer report it to FinCEN.
I already filed a report. Do I need to undo it?
No. There is no process to withdraw a report, and you do not need one. Keep your confirmation for your records. Under the current rule, you have no further filing or update obligation as a domestic company.
Is the Corporate Transparency Act gone?
The law still exists, but the reporting rule now reaches only foreign companies registered in the U.S. FinCEN removed the requirement for U.S. companies and U.S. persons. A future rulemaking or court decision could change the scope again.
I keep getting mail telling me to file. Is it real?
Treat it with caution. Some third parties send notices that look official and charge a fee to file for you. FinCEN does not charge a filing fee. If a domestic entity receives such a notice, you generally have nothing to file.
Does California have its own beneficial ownership rule?
Requirements at the state level continue to evolve, and rules differ by jurisdiction. The federal FinCEN change does not automatically control what a state may require. Confirm any state-specific obligation with your attorney, since entity rules fall outside bookkeeping.
Should my bookkeeper file this for me?
A BOI report is a legal filing, not a bookkeeping task, so most bookkeepers do not submit it. What we do is flag the deadline and point you to the right resource. Since domestic entities are now exempt, most clients need no filing at all.
What if the rule changes again?
It could. The requirement moved several times in 2024 and 2025. That is why we monitor FinCEN and other compliance sources for the businesses we support, so a reversal does not catch you late. We would flag any new deadline that applies to you.
A quick note before you act
This article is general information, not legal or tax advice. Books LA provides bookkeeping services and does not advise on entity law or income tax. For your specific situation, confirm with your attorney or CPA, and read the current guidance directly from FinCEN. Rules in this area have changed before and may change again.
If you would like your compliance dates tracked next to clean monthly books, book a short call and we will walk through it.
