New Article:
Small businesses are facing burdensome reporting requirements, with the Corporate Transparency Act (CTA) being a specific target. The National Federation of Independent Business (NFIB) supports legislation introduced to relieve small businesses of these regulations, with Sen. Tommy Tuberville and Rep. Warren Davidson leading the efforts. NFIB Vice President of Federal Government Relations, Jeff Brabant, highlights the significant burdens imposed by the CTA on small business owners, including civil and criminal penalties for minor paperwork violations and access to a vast database containing private information. The NFIB believes that the CTA is beyond repair and fully supports its repeal.
Under the CTA, corporations, LLCs, or similar entities with 20 or fewer employees and $5 million or less in gross receipts are required to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This rule went into effect on January 1, 2024, impacting an estimated 32.6 million small businesses in the first year and ongoing millions each year thereafter. The NFIB has actively opposed the Corporate Transparency Act and is advocating for its repeal to alleviate regulatory burdens on small businesses.
