A new rule finalized this month by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) grants relief to domestic aircraft LLCs that were previously required to report beneficial ownership information to the federal government.
The rule, which took effect August 14, “clarifies and slightly narrows the scope of companies required to report beneficial ownership information” under the 2021 Corporate Transparency Act (CTA), the National Business Aviation Association (NBAA) said August 25.
Initially proposed by FinCEN in 2025, the rule permanently removes reporting requirements for U.S. companies and individuals. U.S.-formed LLCs, corporations, and other domestic aircraft ownership entities no longer need to share information about their beneficial owners’ names, dates of birth, addresses, or other “ultimate beneficial-owner information,” NBAA said.
FinCEN will also remove from its database any previously reported beneficial ownership information relating to U.S. individuals.
The rule further exempts foreign pooled investment vehicles registered in the U.S. from reporting information on U.S. persons in control of the investment vehicle. Foreign LLCs and other entities are still required to report, but they need only share information on foreign beneficial owners and not Americans who helped them register to do business in the U.S.
The 2021 CTA was designed to combat domestic and international financial crimes such as money laundering by analyzing financial data. Groups such as NBAA raised privacy concerns regarding the potential exposure of beneficial owners’ personal information.
Entities commonly establish LLCs to create leases that allow aircraft to be shared between companies, as well as for other business and tax reasons.
In March, the NBAA praised the repeal of a Washington state measure implemented in 2025, which would have levied a 10 percent tax on the purchase of new and existing aircraft valued at more than $500,000. It was replaced by a 7-cent-per-gallon increase to the state’s aviation fuel tax as well as a “moderate increase” to aircraft registration fees.
The association is also advocating for restrictions on the distribution of aircraft registry data.