If you’ve heard whispers about the Corporate Transparency Act and wondered whether it affects your business, here’s the short answer: if you’re a U.S. small business owner, you’re in the clear.
The law changed dramatically in March 2025. What used to require millions of small businesses to file paperwork now only applies to foreign companies operating in the U.S. Let’s break down exactly what this means for your business.
What the Corporate Transparency Act Was Supposed to Do
The Corporate Transparency Act was designed to crack down on money laundering and financial crimes by requiring businesses to report who actually owns and controls them. The idea was simple: make it harder for bad actors to hide behind shell companies.
When it first passed, the law was set to apply to most small businesses—think LLCs, corporations, partnerships, and similar entities with fewer than 20 employees and less than $5 million in annual revenue. Business owners would have needed to file reports with FinCEN (the Financial Crimes Enforcement Network) listing their “beneficial owners”—basically anyone who owns 25% or more of the company or has significant control over business decisions.
It sounded like a lot of paperwork for small business owners who were already juggling enough compliance requirements.
The Big Change That Happened in March 2025
In March 2025, the government made a significant policy shift: U.S. businesses no longer need to file these reports at all.
That’s right—if your business was formed in any U.S. state, you’re completely exempt from Corporate Transparency Act reporting requirements. It doesn’t matter if you have an LLC in Delaware, a corporation in California, or a partnership in Texas. Size doesn’t matter either—whether you’re a solo consultant or have 15 employees, the reporting requirement simply doesn’t apply to domestic U.S. businesses anymore.
What If You Already Filed Something?
Don’t worry about it. You don’t need to withdraw or change anything you previously submitted. The government just isn’t enforcing these requirements for U.S. businesses anymore.
Why This Matters (Even Though You Don’t Need to Act)
Understanding this legislation is still valuable for a few reasons:
You might encounter it in business conversations. Other business owners, lawyers, or accountants might bring up the Corporate Transparency Act, and it’s helpful to know what they’re talking about.
It shows how regulations can change. This is a perfect example of how compliance requirements that seem set in stone can actually shift based on practical considerations and policy changes.
You might work with foreign companies. If you partner with or acquire businesses that were formed outside the U.S., they may still have reporting obligations under this law.
A Quick Note About Scams
Since there’s been confusion about this law, scammers have tried to take advantage. If anyone contacts you asking for money to help with Corporate Transparency Act compliance, ignore them. Even when the law did apply to more businesses, filing was always free through the government website.
What About the Future?
Laws can always change, and future administrations might modify these requirements. But for now, you can cross “Corporate Transparency Act compliance” off your worry list.
The exemption for domestic companies represents a recognition that small businesses have enough regulatory complexity to deal with without adding another layer of reporting requirements for a problem that existing banking and financial regulations already address pretty well.
The Bottom Line
If you own a U.S. small business: You don’t need to file anything. You don’t need to track beneficial owners. You don’t need to worry about this law at all.
The Corporate Transparency Act caused a lot of anxiety when it was first rolling out, but the March 2025 changes simplified things dramatically for American small business owners. You can focus on what you do best—running and growing your business—without worrying about this particular piece of federal compliance.
Sometimes the best business news is when you find out there’s one less thing on your to-do list. This is one of those times.
