What Is the BOI Reporting Rule?
The Beneficial Ownership Information (BOI) reporting rule has become a major concern for small business owners across the United States. During an interview, Josh McLeod, Director of Federal Government Relations for the National Federation for Independent Business (NFIB), explained why many business groups want Congress to repeal the rule.
The BOI requirement would force millions of small businesses to submit ownership information to the federal government. According to McLeod, businesses with fewer than 20 employees and less than $5 million in annual revenue are among those affected.
What Businesses Must Report
Under the rule, business owners with at least a 25% ownership stake must provide personal information. This includes their legal name, address, taxpayer identification number, and a government-issued photo ID. Certain managers who exercise substantial control over a business may also have to register.
The rule also requires businesses to update their information whenever ownership or management changes. Companies generally have 30 days to report those updates.
Why Small Businesses Are Concerned
McLeod argued that the reporting requirement creates additional paperwork for businesses that already operate with limited staff. Many small companies do not have compliance officers or legal teams to manage new federal regulations.
He also raised concerns about privacy. Business owners already provide similar information when registering with their state. The federal database, however, could allow broader government access without the same legal process required for state records.
Current Status of BOI Reporting
The BOI rule remains federal law, but enforcement for U.S. businesses is currently paused. According to McLeod, the Trump administration suspended enforcement in 2025, calling the rule overly burdensome for small businesses.
Several bills in Congress would either repeal the BOI reporting requirement entirely or permanently exempt U.S. businesses. Supporters also want previously collected ownership information deleted.
As lawmakers debate the issue, small business advocates continue pushing for permanent relief from what they view as an unnecessary regulatory burden.