S. 505: ‘Protect Small Businesses from Excessive Paperwork Act of 2025

This bill, titled the ‘Protect Small Businesses from Excessive Paperwork Act of 2025,’ aims to change the requirements for certain companies to file beneficial ownership information reports. Here are the key aspects of the bill:

Purpose of the Bill

The primary goal of the bill is to alleviate the administrative burden on small businesses by modifying the deadline for when specific companies must submit reports regarding their beneficial owners. Beneficial owners are generally individuals who have a significant ownership stake or control over the company.

Current Requirements

Under the existing law, companies that were formed or registered before January 1, 2024, have certain obligations to file beneficial ownership information by a designated deadline.

Changes Proposed by the Bill

The bill proposes to extend the deadline for these pre-existing companies. Specifically, it states that companies formed or registered before January 1, 2024, are required to submit their beneficial ownership reports by January 1, 2026, instead of the earlier requirement.

Implications for Small Businesses

This extension is intended to provide additional time for small businesses to prepare and file the necessary documentation, thereby reducing the pressure and workload associated with compliance. By moving the deadline, the bill seeks to protect small businesses from immediate excessive paperwork requirements.

Legislative Process

The bill was introduced in the Senate by a group of sponsors and has been referred to the Committee on Banking, Housing, and Urban Affairs for further consideration.

Relevant Companies

None found