BOI Compliance in 2025: What You Need to Know to Stay Legal, Legit & Lender-Ready

What Is BOI Compliance?

BOI stands for Beneficial Ownership Information — a legal reporting requirement introduced under the Corporate Transparency Act (CTA) and enforced by the Financial Crimes Enforcement Network (FinCEN).

Originally, beginning January 1, 2024, almost all small businesses — including LLCs and corporations — were required to file a BOI report with FinCEN within 30 days of formation. However, in March 2025, a critical update changed the game:

As of March 2025, U.S. companies are no longer required to file BOI reports. Only foreign entities must comply with BOI reporting.

This change offers relief to U.S.-formed companies but maintains strict reporting for foreign reporting companies — meaning, if your business was formed outside the U.S. but registered to operate within it, you still need to file.

What Is a Foreign Reporting Company?

A foreign reporting company is any business formed under the laws of another country but registered to do business in a U.S. state or tribal jurisdiction. Examples include:

• International holding companies with U.S. operations

• Non-U.S. e-commerce businesses registered in Delaware or Wyoming

• Foreign-owned LLCs set up to manage U.S. real estate

These entities must file a BOI report unless they qualify for a FinCEN exemption.

Deadlines for Foreign Businesses

The deadlines differ based on when your business was registered in the U.S.:

⚠️ Even if your business is not operational yet or hasn’t generated income, you must file if registered.

Who Needs to Be Reported?

BOI reports collect information about:

1. Beneficial Owners

These are the people who:

• Own 25% or more of the company OR

• Have substantial control over decisions (e.g., founders, managers, executive roles)

2. Company Applicants

For foreign companies registered after January 1, 2024, FinCEN also requires the identity of the company applicant:

• The person who files the registration documents

• Or the person who directly controls that process

What Information Is Reported?

For each beneficial owner and applicant, the following must be submitted:

• Full legal name

• Date of birth

• Residential address

• A valid identification number (U.S. passport, foreign passport, or driver’s license)

• A scanned copy of that ID

Company-level data (name, formation jurisdiction, and address) must also be included.

What Happens If You Don’t File?

The penalties for non-compliance are serious:

• $500/day for every day the report is late

• Up to $10,000 in fines

• Possible criminal charges with up to 2 years imprisonment

FinCEN is working with the IRS, law enforcement, and banks to ensure compliance — and foreign businesses are being flagged in underwriting processes if they fail to report.

BOI Compliance & Business Credit

If you plan to apply for:

• A business bank account

• Credit cards or loans

• Government grants or contracts

…then BOI compliance is essential. More lenders and underwriters are requiring proof of BOI filing before approvals.

A missing BOI report can prevent account opening or funding approvals — even for otherwise strong companies.

BOI FAQs

Q: My company is inactive. Do I still need to file?
Yes — if it’s a foreign entity registered in the U.S., even inactive businesses must file unless officially dissolved.

Q: How do I know if I’m exempt?
FinCEN provides exemptions for large U.S.-operating companies (20+ employees, $5M+ in revenue), certain regulated industries, and nonprofits — but foreign companies rarely qualify.

Q: Do I need to update the report annually?
No. BOI is a one-time filing unless ownership or key information changes. Updates must be filed within 30 days of a change.

Q: Is my BOI information public?
No. BOI data is stored in a secure FinCEN database and can only be accessed by:

• Federal and state law enforcement

• Select regulatory agencies

• Financial institutions (with your permission)

Q: Can I file the BOI myself?
Yes — but the FinCEN portal can be confusing for first-time filers. If you’re not sure what qualifies as “substantial control” or how to document your ID correctly, we can file for you.

Why BOI Still Matters (Even Without a U.S. Filing Requirement)

If you’re a U.S.-formed LLC or corporation, you may feel off the hook due to the 2025 exemption. But:

1. This may be temporary. FinCEN’s March 2025 exemption is an interim rule, and public comment is being reviewed. BOI for U.S. entities could return in late 2025 or 2026.

2. You still need clean records. Bankers, lenders, and underwriters are starting to expect clarity on business ownership. Even if BOI isn’t required by law, it’s becoming a best practice in the funding world.

3. If you plan to operate internationally, many countries are increasing transparency requirements for U.S. businesses — and your compliance record will matter.

How BOI Compliance Fits into Formation at BizzHopper

At BizzHopper, we don’t just help you start a business — we help you structure one that’s built for:

• Funding

• Credit

• Legal protection

• Operational legitimacy

When you register through our platform:

• We ask the right ownership questions upfront

• We track whether you’re required to file BOI or not

• We build BOI filing (if needed) into your formation workflow

• You can add BOI filing to any package in just one click

Why Businesses Trust BizzHopper

• Simple forms and no jargon

• Step-guided process with expert review

• Support for foreign and U.S. clients

• Add-ons for EINs, business credit, and more

• Compliance-backed documentation

Whether you need BOI filing today or you just want to stay ready for what’s next, we make it easy.

Next Step: Know Your BOI Status

✔️ If you’re a foreign company registered in the U.S. — you must file BOI
✔️ If you’re a U.S. business, no BOI filing is required for now — but we’ll keep you updated
✔️ If you’re forming through BizzHopper, we handle this for you automatically

Ready to stay compliant and funding-ready?
[Get Started With BOI Filing Now]