The National Federation of Independent Business (NFIB) has endorsed new legislation introduced by Senator Tommy Tuberville (AL) and Representative Warren Davidson (OH-8).
This legislation seeks to repeal the Corporate Transparency Act (CTA), which currently requires small businesses to report detailed ownership information, a rule seen as overly burdensome.
“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.”
Under the CTA, small corporations, limited liability companies (LLCs), and similar entities that have 20 or fewer employees and make $5 million or less in annual sales must submit their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
This requirement started on January 1, 2024, and initially impacts approximately 32.6 million small businesses, with an additional 5 to 6 million businesses affected each subsequent year, as per FinCEN’s projections.
The NFIB vehemently opposed the Corporate Transparency Act and has advocated for its repeal.
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