Experts discuss the new reporting law and the impact it will have on over 32 million small businesses
The new Beneficial Ownership Information (BOI) reporting law went into effect on Jan. 1, 2024. The Small Business Rundown podcast featured NFIB experts discussing the impacts of this law and what it means for small businesses going forward.
“This is the biggest reporting requirement and most massive federal database that business owners have not heard of, which is really frightening when we talk about what the penalties are for not complying with this new law,” said Elizabeth Milito, NFIB Small Business Legal Center Executive Director.
This law impacts over 32 million small businesses and according to a recent NFIB survey, 83% of business owners are not aware of this regulation. It requires businesses with 20 or fewer employees and $5 million or less in gross annual receipts to report their beneficial ownership information to the new federal database maintained by the Financial Crimes Enforcement Network (FinCEN).
“For NFIB members, they’re not money launderers; they’re not shell companies. So, this is going to be fairly burdensome,” said Jeff Brabant, Vice President of Federal Government Relations. “They’re going to have to register a photocopy of their driver’s license and significant information about themselves and their businesses with the Financial Crimes Enforcement Network and update that information if it ever changes for the life of the business.”
The podcast also explains:
- who qualifies as a beneficial owner
- who is required to report BOI
- penalties for not complying
- specific information that needs to be reported
- privacy concerns
- and more!
NFIB has a fact sheet with more information on the requirements and process. Also, watch the recent webinar “Beneficial Ownership Reporting Is Here: What Small Business Owners Need to Know About the New Reporting Requirements” for more information from an attorney and BOI expert.
Listen to the Small Business Rundown episode “Beneficial Ownership Law: What Small Businesses Need to Know” and take action to repeal this law today.
