Join us in urging Congress to protect American small businesses from BOI and delete the data.
FinCEN Beneficial Ownership Information Reporting Rule
FinCEN Beneficial Ownership Information Reporting Rule
NFIB continues to fight the unconstitutional and invasive BOI reporting requirements – and we need your help!
Last year, the Treasury Department exempted more than 32 million American small businesses from the burdensome and unconstitutional beneficial ownership information (BOI) reporting requirements established by the Corporate Transparency Act (CTA).
This exemption saved American small businesses from over $128 billion in regulatory burdens and compliance costs.
Without this relief, small business owners were facing:
- Up to $10,000 in fines
- Up to 2 years in prison
Millions of small business owners have submitted their private information into a database accessible by federal, state, and international agencies. Despite the Treasury exemption, the Financial Crimes Enforcement Network (FinCEN) still holds the data of American small businesses.
A future administration could reinstate the invasive reporting requirements at any time, and the personal data of over 32 million Americans would once again be subjected to potential abuse, leaks and hacks.
Latest Update
Financial Crimes Enforcement Network (FinCEN) issued a regulation exempting all U.S. small businesses and U.S. persons from the Beneficial Ownership Information (BOI) reporting requirements. This means that small businesses do not need to file federal BOI reports. FinCEN’s press release provides confirmation of this update and more detail.
NFIB continues to advocate for Congress to permanently repeal the law that established this mandate, and for FinCEN to immediately destroy all BOI data already submitted by U.S. small businesses. Our lawsuit against BOI reporting is still pending.
There needs to be a permanent repeal, and our collected data needs to be immediately destroyed so we can all sleep a little better at night. As a small business, we face many challenges daily, but finalizing this error in judgment regarding the requested info should not be one of them.
Karen Stanley, APR, NeonFROG, Columbus, MS
Running a small business alone is difficult enough, and we are struggling to stay afloat after taxes strip out any hope of just breaking even, let alone making a living. We do not need an additional layer of mandated regulation on top of what is already required.
Framing store, WA
Federal Beneficial Ownership Information Reporting FAQs
What is a beneficial owner?
A beneficial owner is any individual who, directly or indirectly, exercises substantial control over a reporting company or owns or controls at least 25% of a reporting company.
Under FinCEN’s new regulation, only the information of non-U.S. beneficial owners of foreign based entities registered to do business in the United States needs to be reported.
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA) required over 32 million U.S. small businesses to file beneficial ownership information (BOI) reports with FinCEN. Those who failed to file by the ever-changing reporting deadline — or update this information if needed — could have faced up to two years imprisonment and civil penalties of $591 per day, up to $10,000. As of March 2025, FinCEN has issued regulations exempting U.S. based companies from the reporting requirements of the CTA.
What is the status of NFIB’s lawsuit against the Corporate Transparency Act?
NFIB’s lawsuit to permanently eliminate the CTA, and BOI reporting, is ongoing. On December 3, 2024, a federal court in Texas agreed with NFIB that the law was likely unconstitutional.
The government has appealed that decision, and we are waiting for the federal appeals court to determine the appeal schedule.
Is BOI reporting dead?
For now, BOI reporting for U.S. companies and U.S. persons is temporarily dead. FinCEN is asking for comments on its new regulation, and its final regulation issued after receiving comments could change the landscape of BOI reporting yet again. Additionally, unless a Court strikes down the CTA, or Congress permanently repeals it, there is a possibility of a future administration bringing back BOI reporting for U.S. companies and persons.
What should businesses do next?
On BOI reporting, nothing.
Now is not the time to get complacent. For those small businesses that haven’t already, they should send a message (using the Take Action alert above) to their lawmakers in the U.S. House and Senate urging them to support the Repealing Big Brother Overreach Act, legislation that would permanently repeal the CTA.
NFIB’s statement on the new guidance makes clear that we will continue to push Congress for a permanent repeal of the CTA and will urge FinCEN to immediately destroy all BOI data already submitted by America’s small businesses.
Podcasts
Resources
In the News
NFIB Supports Legislation to Protect American Small Businesses from $128 Billion Regulatory Burden
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In the News
Washington Post Editorial Board Calls for Repeal of Corporate Transparency Act
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In the News
NFIB Joins Coalition Urging Treasury to Issue Final BOI Rule, Destroy Previously Collected Data
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In The News
NFIB Prevails in Blocking Burdensome Beneficial Ownership Requirements for Small Businesses
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