New BOI Filing Requirements with FinCEN: What REALTORS® Need to Know

Update (March 3, 2025): The Treasury Department and Financial Crimes Enforcement Network (FinCEN) recently announced that it will suspend enforcement actions related to compliance with the Corporate Transparency Act at this time. FinCEN nor Treasury will take any action against reporting companies and owners for failure to file any Beneficial Ownership Information (BOI) reports by March 21, 2025. FinCEN announced that it will be issuing an interim final rule extending the BOI deadlines.

For more information, please see FinCEN's notice here, and please see the Treasury Department's announcement here. 

NAR will continue to provide you with updates and developments regarding the Corporate Transparency Act (CTA) and the Beneficial Ownership Rule. You can also see NAR's recent Washington Reports here. 

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As of January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) now requires that many businesses in the U.S. file a Beneficial Ownership Information (BOI) report. This new requirement is designed to increase transparency, combat money laundering, and prevent financial crimes by making it easier for law enforcement to identify the individuals who ultimately own or control companies.

Learn more: www.fincen.gov/boi

What is BOI?

The BOI filing mandates that certain businesses submit information about their beneficial owners—those who directly or indirectly own or control 25% or more of a business. This information includes their full legal name, date of birth, residential address, and a copy of a government-issued ID.

Who Needs to File?

Generally, most U.S. businesses created or registered after January 1, 2024, will need to file a BOI report. However, certain types of entities, like large operating companies or government-regulated entities, may be exempt. Real estate professionals should review these guidelines, as real estate investment firms, LLCs, and other entities within the industry may be subject to these reporting requirements.

How to File and When?

Businesses formed before January 1, 2024, have until January 1, 2025, to file their BOI reports, while new businesses will need to file within 30 days of their formation. Reports can be submitted electronically through FinCEN's secure filing system.

Why Does This Matter?

For real estate professionals, understanding BOI requirements is essential, as many clients may be affected. Real estate transactions often involve LLCs or investment entities, and these clients will benefit from knowledgeable guidance on compliance.

For more information, visit FinCEN’s website or consult with a legal professional to ensure you’re prepared.

File today: www.fincen.gov/boi