04/04/25

US: Small Business Victory on Beneficial Ownership Reporting

As published on: nfib.com, Friday 4 April, 2025.

U.S. small businesses do not need to file
What it means: U.S. small businesses do not need to file federal Beneficial Ownership Information reports. FinCEN issued a new regulation that exempts all U.S. small businesses and persons from the reporting requirements in a small business victory.

Our take: “NFIB has been steadfast since the beginning that this onerous requirement is a massive intrusion into small businesses’ privacy and creates an unprecedented new government database on Americans. We agree with President Trump that requirements from the Corporate Transparency Act are ‘outrageous and invasive,’” said NFIB President Brad Close.

Take Action: Send Congress a message to repeal beneficial ownership reporting.

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Small business saw a major victory in the fight against beneficial ownership reporting requirements. The Financial Crimes Enforcement Network (FinCEN) removed requirements for U.S. small businesses to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act.

There has been much uncertainty over this new requirement and its extreme penalties for small businesses that did not comply by the end of 2024. This unnecessary mandate impacted more than 32 million small businesses nationwide. BOI reporting requirements were beyond burdensome and put personally identifiable information at risk on a new, untested government database.

NFIB President Brad Close: Update on Beneficial Ownership (BOI) Reporting

“The CTA would hit our business directly by exposing my mom, a 75-year-old widow, to unnecessary risk of her personal information getting out or her becoming a target for fraud. Please repeal this burdensome act and find more targeted ways to catch criminals,“ shared an NFIB member from Burlington, KY.

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US Small business Beneficial ownership