The National Federation of Independent Business (NFIB) has launched a statewide advertising campaign urging Governor Kathy Hochul to veto legislation that would require small businesses to report beneficial ownership information to the New York Department of State. The campaign includes digital and print ads, as well as a website, ProtectNYSmallBusiness.org, which provides further details about the proposed rule and its potential effects on small businesses.
Ashley Ranslow, NFIB New York State Director, said, “The State Legislature decided to double down and impose an invasive state-level requirement despite the federal government rightfully backing away from a similarly dangerous and unconstitutional law. A bill heading to Governor Kathy Hochul’s desk treats small business owners as criminals, requiring them to report their personally identifiable information to the New York Department of State.”
Ranslow added, “This legislation poses significant risks for our members and many small business owners across the state, both in the lack of data security of their personal information – including passport and driver’s license numbers – and crippling penalties for failing to comply, including fines of $500 per day or business suspension. Small entrepreneurs already spend countless hours navigating and complying with New York’s unrelenting regulations and mandates. Main Street does not need another burdensome compliance hurdle tripping up their livelihoods. For the sake of New York’s small businesses, Governor Hochul should veto this harmful legislation, and keep the state aligned with federal requirements.”
The legislation in question, S.8432/A.8662, was introduced and passed by the New York State Legislature at the end of the 2025 legislative session. It requires limited liability companies (LLCs) with 20 or fewer employees to submit annual paperwork disclosing beneficial ownership details to the state. According to NFIB, this bill was advanced without sufficient input from the small business community, and its members have voiced strong opposition.
NFIB represents more than 11,000 members in New York and has advocated for small businesses nationwide for over 80 years.
