BOI reporting for freelancers

BOI reporting for freelancers As of January 3, 2026, FinCEN's March 26, 2025 interim final rule (IFR) has significantly revised the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

This IFR exempts all entities created in the United States, including those previously classified as 'domestic reporting companies,' and U.S. persons from federal BOI reporting. The federal reporting obligation is now limited to certain foreign entities that have registered to do business in the U.S. by filing with a secretary of state or similar office.This means that most freelancers operating as sole proprietors, who typically do not form their businesses by filing articles with a secretary of state, are not considered reporting companies and are not required to file BOI reports with FinCEN.

Similarly, domestic LLCs and corporations, which were previously subject to these rules, are now exempt under the IFR. However, it is crucial to monitor future rulemaking and potential litigation that could impact these exemptions.Foreign companies that have registered to do business in U.S. states and do not qualify for an exemption are still required to file BOI reports with FinCEN.

Specific deadlines apply: foreign reporting companies registered before March 26, 2025, had until April 25, 2025, to file, while those registered on or after March 26, 2025, have 30 calendar days after their registration becomes effective.FinCEN continues to provide guidance through FAQs and a Small Entity Compliance Guide, and maintains an e-filing portal.

Penalties for willful failure to report or providing false information remain substantial, including civil penalties of up to $500 per day and criminal penalties of up to two years imprisonment and/or fines up to $10,000.

FinCEN does offer a voluntary correction safe harbor under certain conditions.State-level BOI requirements vary. Many state Secretary of State offices, such as those in Texas and Florida, direct filers to FinCEN and do not collect BOI themselves.

However, some states are developing or have adopted their own beneficial ownership disclosure regimes. For example, New York has enacted a state filing requirement with its Department of State, effective January 1, 2026, for certain foreign LLCs authorized to do business in the state.

California also considered SB 1201, which aimed to create a more expansive state BOI requirement. Freelancers should therefore monitor state-specific deadlines and filing systems independently of federal FinCEN requirements.Practical Guidance for Freelancers: As of January 3, 2026, FinCEN's March 26, 2025 interim final rule (IFR) has significantly revised the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

This IFR exempts all entities created in the United States, including those previously classified as 'domestic reporting companies,' and U.S. persons from federal BOI reporting. The federal reporting obligation is now limited to certain foreign entities that have registered to do business in the U.S. by filing with a secretary of state or similar office.This means that most freelancers operating as sole proprietors, who typically do not form their businesses by filing articles with a secretary of state, are not considered reporting companies and are not required to file BOI reports with FinCEN.

Similarly, domestic LLCs and corporations, which were previously subject to these rules, are now exempt under the IFR. However, it is crucial to monitor future rulemaking and potential litigation that could impact these exemptions.Foreign companies that have registered to do business in U.S. states and do not qualify for an exemption are still required to file BOI reports with FinCEN.

Specific deadlines apply: foreign reporting companies registered before March 26, 2025, had until April 25, 2025, to file, while those registered on or after March 26, 2025, have 30 calendar days after their registration becomes effective.FinCEN continues to provide guidance through FAQs and a Small Entity Compliance Guide, and maintains an e-filing portal.

Penalties for willful failure to report or providing false information remain substantial, including civil penalties of up to $500 per day and criminal penalties of up to two years imprisonment and/or fines up to $10,000.

FinCEN does offer a voluntary correction safe harbor under certain conditions.State-level BOI requirements vary. Many state Secretary of State offices, such as those in Texas and Florida, direct filers to FinCEN and do not collect BOI themselves.

However, some states are developing or have adopted their own beneficial ownership disclosure regimes. For example, New York has enacted a state filing requirement with its Department of State, effective January 1, 2026, for certain foreign LLCs authorized to do business in the state.

California also considered SB 1201, which aimed to create a more expansive state BOI requirement. Freelancers should therefore monitor state-specific deadlines and filing systems independently of federal FinCEN requirements.Practical Guidance for Freelancers: Confirm Entity Status Determine if you operate as a sole proprietor (no state formation filing) or if you formed a state-registered entity (LLC, corporation).

Sole proprietors generally do not need to file BOI with FinCEN. Domestic LLCs/Corporations While currently exempt from federal BOI reporting under FinCEN's March 2025 IFR, stay informed about FinCEN and state developments.

Maintain internal records of beneficial owners and individuals with substantial control in case future regulations or state laws necessitate disclosure. Foreign Entities Registered in the U.S.

If you are a non-U.S. entity registered to do business in the U.S., you likely need to file a BOI report with FinCEN. Verify your registration date and adhere to the applicable IFR deadlines.

Document Collection Securely collect and store identification documents (name, date of birth, residential address, ID number, and an image of the ID) for all beneficial owners and company applicants, as these details are required for filings.

FinCEN ID and Filing Assistance Consider obtaining a FinCEN ID. If needed, utilize an authorized third-party e-filing service or legal counsel for report preparation and submission, ensuring compliance with state regulations regarding the unauthorized practice of law.

Monitor State Developments Keep an eye on BOI-related legislative and regulatory changes in states like New York and California, and subscribe to updates from FinCEN and your state's Secretary of State.7.

Correct Errors Promptly: If you discover an error in a previously filed report, submit a correction without delay. FinCEN provides processes for updates and a 90-day safe harbor for voluntary corrections in certain situations.

Seek Professional Advice For complex ownership structures (e.g., trusts, layered entities) or cross-border ownership, consult a qualified attorney or CPA.

BOI reporting for freelancers As of January 3, 2026, FinCEN's March 26, 2025 interim final rule (IFR) has significantly revised the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

This IFR exempts all entities created in the United States, including those previously classified as 'domestic reporting companies,' and U.S. persons from federal BOI reporting. The federal reporting obligation is now limited to certain foreign entities that have registered to do business in the U.S. by filing with a secretary of state or similar office.This means that most freelancers operating as sole proprietors, who typically do not form their businesses by filing articles with a secretary of state, are not considered reporting companies and are not required to file BOI reports with FinCEN.

Similarly, domestic LLCs and corporations, which were previously subject to these rules, are now exempt under the IFR. However, it is crucial to monitor future rulemaking and potential litigation that could impact these exemptions.Foreign companies that have registered to do business in U.S. states and do not qualify for an exemption are still required to file BOI reports with FinCEN.

Specific deadlines apply: foreign reporting companies registered before March 26, 2025, had until April 25, 2025, to file, while those registered on or after March 26, 2025, have 30 calendar days after their registration becomes effective.FinCEN continues to provide guidance through FAQs and a Small Entity Compliance Guide, and maintains an e-filing portal.

Penalties for willful failure to report or providing false information remain substantial, including civil penalties of up to $500 per day and criminal penalties of up to two years imprisonment and/or fines up to $10,000.

FinCEN does offer a voluntary correction safe harbor under certain conditions.State-level BOI requirements vary. Many state Secretary of State offices, such as those in Texas and Florida, direct filers to FinCEN and do not collect BOI themselves.

However, some states are developing or have adopted their own beneficial ownership disclosure regimes. For example, New York has enacted a state filing requirement with its Department of State, effective January 1, 2026, for certain foreign LLCs authorized to do business in the state.

California also considered SB 1201, which aimed to create a more expansive state BOI requirement. Freelancers should therefore monitor state-specific deadlines and filing systems independently of federal FinCEN requirements.Practical Guidance for Freelancers: As of January 3, 2026, FinCEN's March 26, 2025 interim final rule (IFR) has significantly revised the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).

This IFR exempts all entities created in the United States, including those previously classified as 'domestic reporting companies,' and U.S. persons from federal BOI reporting. The federal reporting obligation is now limited to certain foreign entities that have registered to do business in the U.S. by filing with a secretary of state or similar office.This means that most freelancers operating as sole proprietors, who typically do not form their businesses by filing articles with a secretary of state, are not considered reporting companies and are not required to file BOI reports with FinCEN.

Similarly, domestic LLCs and corporations, which were previously subject to these rules, are now exempt under the IFR. However, it is crucial to monitor future rulemaking and potential litigation that could impact these exemptions.Foreign companies that have registered to do business in U.S. states and do not qualify for an exemption are still required to file BOI reports with FinCEN.

Specific deadlines apply: foreign reporting companies registered before March 26, 2025, had until April 25, 2025, to file, while those registered on or after March 26, 2025, have 30 calendar days after their registration becomes effective.FinCEN continues to provide guidance through FAQs and a Small Entity Compliance Guide, and maintains an e-filing portal.

Penalties for willful failure to report or providing false information remain substantial, including civil penalties of up to $500 per day and criminal penalties of up to two years imprisonment and/or fines up to $10,000.

FinCEN does offer a voluntary correction safe harbor under certain conditions.State-level BOI requirements vary. Many state Secretary of State offices, such as those in Texas and Florida, direct filers to FinCEN and do not collect BOI themselves.

However, some states are developing or have adopted their own beneficial ownership disclosure regimes. For example, New York has enacted a state filing requirement with its Department of State, effective January 1, 2026, for certain foreign LLCs authorized to do business in the state.

California also considered SB 1201, which aimed to create a more expansive state BOI requirement. Freelancers should therefore monitor state-specific deadlines and filing systems independently of federal FinCEN requirements.Practical Guidance for Freelancers: Confirm Entity Status Determine if you operate as a sole proprietor (no state formation filing) or if you formed a state-registered entity (LLC, corporation).

Sole proprietors generally do not need to file BOI with FinCEN. Domestic LLCs/Corporations While currently exempt from federal BOI reporting under FinCEN's March 2025 IFR, stay informed about FinCEN and state developments.

Maintain internal records of beneficial owners and individuals with substantial control in case future regulations or state laws necessitate disclosure. Foreign Entities Registered in the U.S.

If you are a non-U.S. entity registered to do business in the U.S., you likely need to file a BOI report with FinCEN. Verify your registration date and adhere to the applicable IFR deadlines.

Document Collection Securely collect and store identification documents (name, date of birth, residential address, ID number, and an image of the ID) for all beneficial owners and company applicants, as these details are required for filings.

FinCEN ID and Filing Assistance Consider obtaining a FinCEN ID. If needed, utilize an authorized third-party e-filing service or legal counsel for report preparation and submission, ensuring compliance with state regulations regarding the unauthorized practice of law.

Monitor State Developments Keep an eye on BOI-related legislative and regulatory changes in states like New York and California, and subscribe to updates from FinCEN and your state's Secretary of State.7.

Correct Errors Promptly: If you discover an error in a previously filed report, submit a correction without delay. FinCEN provides processes for updates and a 90-day safe harbor for voluntary corrections in certain situations.

Seek Professional Advice For complex ownership structures (e.g., trusts, layered entities) or cross-border ownership, consult a qualified attorney or CPA.