On March 21, 2025, FinCEN issued an interim final rule that significantly narrows the definition of “reporting company” under the Corporate Transparency Act (CTA).¹ This rule now primarily targets foreign entities registered to do business in the U.S. Key points:

• Domestic companies are exempt: The rule eliminates beneficial ownership reporting requirements for most U.S.-based companies.²
• Foreign entities are the focus: Only foreign entities registered to do business in the U.S. and meeting the new definition will be required to report.³
• No U.S. beneficial owner reporting: Foreign entities under this new rule do not need to report U.S. citizens as beneficial owners.⁴
• Comment period: FinCEN is accepting public comments on the rule for 60 days.⁵
• Final rule expected: FinCEN intends to release a final rule later in 2025.⁶
• Legal counsel recommended: Companies near Aurora, Colorado, with CTA compliance questions should consult legal counsel. McMechan Law is ready to answer these questions and more. McMechan Law provides to the areas surrounding Aurora, Business Attorney, and Real Estate legal services.

Sources:

• Home.treasury.gov
• Fincen.gov