S.505 - ‘Protect Small Businesses from Excessive Paperwork Act of 2025 (119th Congress)
Summary
S.505, the 'Protect Small Businesses from Excessive Paperwork Act of 2025,' aims to amend Title 31 of the United States Code. The bill specifically modifies the deadline for filing beneficial ownership information reports for reporting companies formed or registered before January 1, 2024. The new deadline would be January 1, 2026.
Expected Effects
The primary effect of this bill is to provide additional time for pre-existing reporting companies to comply with beneficial ownership information reporting requirements. This could reduce the immediate burden on small businesses. It gives them more time to gather and submit the necessary information.
Potential Benefits
- Provides small businesses with additional time to comply with reporting requirements.
- Reduces the immediate administrative burden on small businesses.
- May prevent penalties for non-compliance due to the original deadline being too soon.
- Allows businesses to allocate resources to other operational needs in the short term.
- Simplifies the initial implementation phase of beneficial ownership reporting.
Most Benefited Areas:
Potential Disadvantages
- Delays the receipt of beneficial ownership information, potentially hindering law enforcement efforts in the short term.
- May create confusion among businesses regarding the original and extended deadlines.
- Could be perceived as weakening transparency measures aimed at preventing financial crimes.
- The delay does not address the underlying complexity of the reporting requirements, only the timeline.
- May incentivize procrastination, leading to a rush to comply closer to the extended deadline.
Constitutional Alignment
The bill appears to align with the Constitution, specifically Article 1, Section 8, which grants Congress the power to regulate commerce. By adjusting the reporting requirements for businesses, Congress is exercising its authority to create laws necessary and proper for carrying out its enumerated powers. There are no apparent infringements on individual rights or freedoms as defined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).