Opinion Editorial Highlights Burdens of Beneficial Ownership Reporting

August 12, 2024

Over 32 million small businesses will need to register their beneficial owners by the end of the year

Opinion Editorial Highlights Burdens of Beneficial Ownership Reporting

What it means:Beneficial ownership reporting requires over 32 million small businesses to register the personal information of small business owners and their senior employees with the federal government. This places an unfair burden on small businesses, with devastating consequences. Our take: “This regulation will crush small businesses, either with costs or criminal penalties. The National Federation of Independent Business has found that 83% of small businesses don’t even know the rule exists. That puts them at risk of massive fines or even jail time. They shouldn’t have to fear that, nor should they have to comply with such a burdensome mandate in the first place,” wrote Jeff Brabant, NFIB Vice President of Federal Government Relations. Take Action: Urge your elected representatives to support repealing the small business registry requirements.

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Congress created a new reporting database that requires more than 32 million small businesses to register personal information of their beneficial owners with the Financial Crimes Enforcement Network (FinCEN). Jeff Brabant, Vice President of Federal Government Relations, wrote an opinion editorial in the Washington Times explaining why Congress should repeal the new law. This new requirement, known as Beneficial Ownership Information (BOI) reporting, will cost small businesses more than $73.1 billion over 10 years. If Congress does not pass the Repealing Big Brother Overreach Act, small businesses must report the personal information of all beneficial owners by the end of this year. Eighty-three percent of small businesses don’t even know the rule exists, putting them at risk of massive fines or even jail time. NFIB continues to urge Congress to pass the Repealing Big Brother Overreach Act. NFIB also offers resources for small business owners to learn more about this reporting requirement. Hear from Senator Tommy Tuberville and Representative Warren Davidson about why they are pushing for this change on the Small Business Rundown podcast. Read the full opinion editorial in the Washington Times for more on how this registry impacts small business. If you have 20 or fewer full-time employees, urge your elected representatives to support a repeal of the small business registry requirements.

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Topics:

Regulations

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