Corporate Transparency Act Update: Most Real Estate LLCs No Longer File
If you formed an LLC for your rental properties, you probably remember the scramble over Corporate Transparency Act (CTA) filings. The rules have changed completely since then. Here is where things stand in 2026.
Key Takeaways
- FinCEN removed the federal beneficial ownership reporting requirement for all U.S.-formed companies and U.S. persons in March 2025.
- Only entities formed under foreign law that register to do business in a U.S. state still file BOI reports.
- The Eleventh Circuit upheld the CTA itself in December 2025, and FinCEN has not yet finalized the exemption, so rules could shift again.
- Some states, led by New York, are building their own LLC transparency registries with separate filing requirements.
- Keep entity records clean and check with your attorney before assuming no filing applies to you.
Table of contents
The Short Version
Most U.S. real estate investors no longer have a federal CTA filing requirement. In March 2025, FinCEN issued an interim final rule that removed the beneficial ownership information (BOI) reporting requirement for all companies formed in the United States and for all U.S. persons. That includes the single-member LLCs, family LLCs, and partnerships that most real estate investors use.
How We Got Here
Congress passed the CTA in 2021 to fight money laundering through anonymous shell companies. The original rules took effect in 2024 and required most LLCs and corporations to report their beneficial owners to FinCEN, with deadlines in early 2025 and penalties for missing them.
Court challenges followed. After a series of injunctions and reversals, the Treasury Department announced in March 2025 that it would not enforce the CTA against U.S. citizens or domestic companies. FinCEN then formally narrowed the rule: only entities formed under foreign law that register to do business in a U.S. state still report, and even those entities do not report their U.S. beneficial owners.
In December 2025, the Eleventh Circuit upheld the CTA’s constitutionality. That ruling addressed the statute itself, not the exemption. As of mid-2026, FinCEN has not finalized the interim rule, so the requirements could still shift.
What Real Estate Investors Should Do Now
If your entities are U.S.-formed: you have no federal BOI filing obligation right now. If you filed before the exemption, no action is needed; the filing simply sits with FinCEN.
If you have a foreign-formed entity registered in a U.S. state: the reporting requirement still applies. Talk to your attorney about deadlines.
Watch your state. Some states are building their own transparency registries. New York’s LLC Transparency Act is the leading example, with its own disclosure requirements for LLCs formed or registered in New York phasing in starting in 2026. If you hold property through entities in New York or California, ask your attorney whether a state filing applies to you.
Stay alert. FinCEN is expected to issue a final rule, and a future administration or Congress could broaden the requirements again. The pattern from 2024 and 2025 shows how quickly this area moves.
The Bottom Line
The federal CTA burden on real estate investors has mostly disappeared, at least for now. The smart move is to keep your entity records clean so you can respond quickly if the rules change again.
Entity reporting requirements depend on your specific structure and state. Consult your attorney before acting on any of this.
Questions about how entity structures interact with a 1031 exchange? Call WealthBuilder 1031 at 888-508-1901.
Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Consult your tax advisor or attorney for advice specific to your situation.
Have Questions?
Chat with one of our team members to see if a 1031 Exchange is right for you, (without committing to anything).
Video Resources
Case Studies
December 12, 2025
What Is a 1031 Tax Deferred Exchange?
Understanding the Basics of a 1031 Tax Deferred Exchange Many investors ask what a 1031 tax deferred exchange is and how it helps them grow
Read More
December 9, 2025
Reverse 1031 FAQs: The 25 Questions Investors Ask Most (With Straightforward Answers)
Here are the most common frequently asked questions involving reverse 1031 exchanges. This reverse 1031 exchange FAQ aims to address all your queries and concerns
Read More
December 4, 2025
Reverse 1031 Case Studies: How Real Investors Use This Strategy to Grow Faster
Reverse 1031 exchanges allow real estate investors to buy first, sell later, and still defer capital gains taxes. They create speed and flexibility in markets
Read More
Get Started Today
It is easy to get started on your exchange. You can either call our office directly at 888-508-1901, or you can fill out our Start Your Exchange form.
Start Your Exchange