Updates To Corporate Transparency Act Compliance: What Wisconsin And Minnesota Businesses Need To Know

The Corporate Transparency Act (CTA) has undergone significant legal changes, creating uncertainty for businesses in Wisconsin and Minnesota. Most recently, the U.S. Department of the Treasury announced that U.S. citizens and businesses will no longer be subject to fines or penalties for failing to file Beneficial Ownership Information (BOI) reports. Additionally, the Treasury stated that forthcoming rule changes will narrow BOI reporting requirements to apply only to foreign reporting companies.

Despite these changes, businesses should stay informed and prepared as the law continues to evolve. Below, the legal team at Bosshard Parke breaks down the latest updates, what they mean for your business, and the steps you should take to remain compliant.

What Is The Corporate Transparency Act?

The CTA was enacted to prevent financial crimes such as money laundering and fraud by requiring certain businesses to disclose Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This information was intended to be stored in a federal database to improve corporate transparency.

Under the original CTA requirements, most LLCs, corporations, and similar entities were expected to report:

• The legal name and address of the entity
• Names, addresses, and identification details of beneficial owners (individuals with significant control or ownership of at least 25 percent)
• Information about company applicants (for newly formed businesses)

Failure to comply was originally subject to penalties of up to $10,000 in fines and potential criminal charges.

Recent Changes To CTA Compliance Requirements

No More Fines Or Penalties For U.S. Businesses

On March 3, 2025, the Treasury Department issued a statement confirming that U.S. businesses and citizens will not face penalties for failing to file BOI reports under the upcoming rule changes. The Treasury will issue proposed rulemaking that limits BOI reporting requirements to foreign entities only, a significant shift from the original law.

Reporting Deadline Updates

Previously, businesses were required to file BOI reports by March 21, 2025, after multiple deadline extensions. However, on February 27, 2025, FinCEN announced another extension. The Treasury has now confirmed that it will not enforce penalties or require BOI reporting from U.S. companies after the forthcoming rule changes take effect.

What This Means For Wisconsin And Minnesota Businesses

The latest ruling eliminates the CTA’s BOI reporting burden for U.S.-based businesses. However, businesses should continue monitoring FinCEN’s announcements, as additional rule changes may follow.

How To Determine If Your Business Must Comply

Who Still Needs To File?

With the proposed regulatory shift, it is anticipated that only foreign entities registered to do business in the U.S. will need to file BOI reports. U.S.-based businesses, including LLCs, corporations, and sole proprietorships, apparently will no longer be required to file under the CTA’s reporting rules.

Who Is Exempt?

Under the revised guidance, all domestic businesses are expected to be exempt from BOI reporting once the rule changes take effect.

However, businesses with international affiliations should consult a legal professional to determine if they fall under the foreign reporting company classification.

Steps Businesses Should Take Moving Forward

Monitor Final Rule Changes

Although the Treasury has announced major revisions to the CTA’s reporting requirements, the formal rule changes have yet to be implemented. Businesses should stay updated on any final decisions to ensure full compliance.

Keep Internal Ownership Records

While BOI reporting may no longer be required for U.S. businesses, maintaining internal ownership records can still be beneficial. Some state or federal agencies may introduce separate reporting requirements in the future.

Consult A Business Law Attorney

Depending on the final rules that are announced, and any developments in the courts or Congress, some U.S. businesses, particularly those with ties to foreign entities or that operate internationally, may still need to comply with FinCEN reporting rules. Consulting an experienced business attorney can help determine whether your business falls under the new requirements.

Key Takeaways For Wisconsin And Minnesota Businesses

• U.S. businesses and citizens will no longer face fines or penalties for failing to file BOI reports.
• FinCEN will limit BOI reporting requirements to foreign entities only.
• U.S.-based businesses no longer need to submit BOI reports but should monitor final rule changes.
• Consult a business law attorney if your business has international affiliations.

Need Legal Guidance On CTA Compliance? Bosshard Parke Can Help

Navigating the Corporate Transparency Act has been complex, but the latest updates bring welcome relief for many U.S. businesses. The business law attorneys at Bosshard Parke can help you determine whether your business falls under the new compliance rules and stay current on final rule changes.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Please consult with an attorney at Bosshard Parke for specific legal guidance regarding CTA compliance.