Small businesses support legislation to relieve the burdensome information reporting requirement
There is still time to make your voice heard. The House Small Business Committee will hold a hearing on BOI on May 30. Take Action: Send a message to your lawmakers to support repealing the CTA.
On January 1, 2024, beneficial ownership reporting requirements went into effect, impacting 32.6 million small businesses. NFIB supports legislation introduced by U.S. Representative Warren Davidson (OH-08) and U.S. Senator Tommy Tuberville (AL) to repeal the Corporate Transparency Act (CTA). Repealing the CTA will relieve small businesses of beneficial ownership information (BOI) requirements, one of the largest and most burdensome small business 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.”
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 a new federal database maintained by the Financial Crimes Enforcement Network (FinCEN).
“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,” explained Brabant. “The Corporate Transparency Act is beyond repair, and NFIB applauds Sen. Tuberville and Rep. Davidson for introducing legislation to repeal it.”
NFIB hosted a webinar earlier this year with an expert guest to explain and provide clarifications for the new requirement. NFIB’s Beth Milito, Executive Director of the Small Business Legal Center, joined the Small Business Rundown podcast episode, “Beneficial Ownership Law: What Small Businesses Need to Know” to discuss what the requirements mean for small businesses. A fact sheet is also available with details on who needs to report and what information they must provide.
