‘Protect Small Businesses from Excessive Paperwork Act of 2025

# Protect Small Businesses from Excessive Paperwork Act of 2025 – Summary **What the Bill Does:** This bill would delay a federal reporting requirement by one year. It extends the deadline for certain companies to file "beneficial ownership" information (details about who actually owns or controls a company) with FinCEN, a Treasury Department agency that combats financial crimes. Companies formed or registered before January 1, 2024, would have until January 1, 2026, to file instead of the current January 1, 2025, deadline. **Who It Affects:** The bill primarily affects small and medium-sized businesses that were established before January 2024.

These companies would gain extra time to comply with the beneficial ownership reporting requirement, which was created to help prevent money laundering and financial fraud. **Current Status:** The bill is currently in committee (S 505), meaning it's being reviewed by Senate committees before any potential floor vote. It was sponsored by Senator Tim Scott, a South Carolina Republican.