Non-compliance is no longer subject to penalties and reporting is voluntary. However, additional Federal and State Legislation using the CTA’s BOI reporting requirements and framework are still coming into effect. Below is a synopsis of those laws:

Federal

• FinCEN’s Residential Real Estate Rule, which will be effective on December 1, 2025, requires reports to be submitted (similar to BOI Reports) and to retain records for certain non-financed transfers of residential real property to specified legal entities and trusts.  Some exemptions exist but most non-financed transfers need to be reported.
  • The rule requires professionals (including lawyers) involved in certain transfers of residential real estate to report information about the property and parties to FinCEN. Only “reportable transfers” need to be disclosed to FinCEN.
  • A reportable transfer is “a non-financed transfer to an entity or trust of an ownership interest in residential real property.” This includes single-family houses, townhouses, condominiums, co-ops, and vacant land.
  • FinCEN requires the report of the transfer by the later of either the final day of the month following the month in which the date of closing occurred OR 30 calendar days after the date of closing.

State

• New York BOI Requirements
  • New York has enacted a bill with an effective date of January 1, 2026, which requires the filing of a report of “beneficial owners” of an LLC. A beneficial owner is defined as someone who directly or indirectly owns 25% or more of the company’s equity interests OR if a person owns less than 25%, they can still be considered a beneficial owner if they have significant control or influence over the company’s decisions.
  • The law applies specifically to any LLC formed OR authorized to do business in New York

• South Dakota BOI Requirements
  • South Dakota’s currently effective BOI regulations specifically address foreign ownership of agricultural land. Under this statute, businesses that own agricultural land in South Dakota must disclose whether they have any foreign beneficial owners.

• District of Columbia BOI Requirements
  • The District of Columbia implemented BOI requirements in 2020. Under these regulations, every entity must disclose the names, residence, and business addresses of individuals with direct or indirect, legal or beneficial ownership of a governance or total distributional interest in the entity exceeding 10% OR if they control the financial or operational decisions of the entity or have the ability to direct its day-to-day operations.