Legislation would relieve small businesses of burdensome reporting requirements
WASHINGTON, D.C. (April 29, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, supports legislation introduced today by Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) to repeal the Corporate Transparency Act (CTA). Repealing the CTA will relieve small businesses of beneficial ownership information requirements, one of the largest and most burdensome regulations.
“Repealing the Corporate Transparency Act is welcome news to small business owners, as the Act contained one of the largest and intrusive pieces of legislation affecting the small business economy in generations,” said Jeff Brabant, NFIB Vice President of Federal Government Relations. “This Act singles out small business owners and subjects them to civil and criminal penalties for simple paperwork violations. It also allows state, federal, and international law enforcement nearly unfettered access to a database containing the private and sometimes confidential information of millions of small business owners. The Corporate Transparency Act is beyond repair and NFIB applauds Sen. Tuberville and Rep. Davidson for introducing legislation to repeal it.”
The CTA requires corporations, LLCs, or similar entities with 20 or fewer employees and $5 million or less in gross receipts or sales, as reflected in the previous year’s federal tax return, to report their beneficial ownership information to FinCEN. The rule went into effect on January 1, 2024, and will affect 32.6 million small businesses in the first year and five to six million small businesses every year thereafter, according to FinCEN’s estimates.
NFIB has vehemently opposed the Corporate Transparency Act and has advocated for its repeal.
