Protect Small Businesses from Excessive Paperwork Act of 2025

House Bill

H.R. 736

119th Congress

Protect Small Businesses from Excessive Paperwork Act of 2025

In Committee

Introduced:Jan 24, 2025

Primary Sponsor

Lauren Underwood

Representative

Democratic

IL-14

Cosponsors

12

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This bill extends the deadline for beneficial ownership reporting to FinCEN by one year for companies formed before January 1, 2024. Instead of requiring submission by January 1, 2025, businesses would have until January 1, 2026 to file their beneficial ownership information. This provides additional time for small businesses to comply with the Corporate Transparency Act requirements.

Latest Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

AI Summary

Plain-English explanation of this bill

This bill extends the deadline for beneficial ownership reporting to FinCEN by one year for companies formed before January 1, 2024. Instead of requiring submission by January 1, 2025, businesses would have until January 1, 2026 to file their beneficial ownership information. This provides additional time for small businesses to comply with the Corporate Transparency Act requirements.

Last updated: 1/4/2026

Official Summary

Congressional Research Service summary

Protect Small Businesses from Excessive Paperwork Act of 2025This bill extends the deadline for certain companies that are required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). Specifically, the bill requires companies formed or registered before January 1, 2024, to submit this information to FinCEN by January 1, 2026, instead of by January 1, 2025, as required under current regulations.

Key Points

Main provisions of the bill

Extends beneficial ownership filing deadline by one year
Applies to companies formed or registered before January 1, 2024
New deadline: January 1, 2026 instead of January 1, 2025
Filings required with Financial Crimes Enforcement Network (FinCEN)
Addresses Corporate Transparency Act compliance burden

How This Impacts Americans

Potential effects on citizens and communities

This deadline extension provides relief for small businesses facing new beneficial ownership disclosure requirements. Many small business owners were unaware of or unprepared for the original deadline. The extension gives businesses more time to understand requirements and gather necessary information, though it delays implementation of anti-money laundering transparency measures.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Related Subjects

Business records

Corporate finance and management

Licensing and registrations

Small business

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

736, 119th Congress (2025). "Protect Small Businesses from Excessive Paperwork Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-736