Small businesses snared by onerous reporting requirements and fines
wsj.com
wsj.com
The CTA (corporate transparency act) only affects small businesses that file as an entity with a state (e.g corporations, LLCs). Sole proprietors, partnerships, trusts, etc are not affected.
Further, it has already been postponed. As of Jan 1 2024, only new entities are required to file within 30 days. New businesses already have a checklist of thinks they need to do upon startup, it should be easy to add this to the list. Existing entities have been postponed by a full year to Jan 1 2025.
And the penalties for failure to file are greatly reduced if a correction is made with a reasonable time period.
It was passed with bi-partisan support in Congress, if that matters.
The following link has multiple informative articles if you really want to know what it's about.
Interestingly, the usual suspects (banks, VCs, accounting firms, and pretty much every moneyed group with influence and lobby power) carved themselves an exception to this rule.
SO this is a new burdensome rule, that is selectively applied to certain industries with no power.
As a small business owner, there are tons of regulations one needs to be concerned about at the local, state and federal level. This does not enhance value for businesses or surface any data the govt didn't have before. Instead this rule seems to to make money for lawyers, banks, and not much else except to steal money from hardworking small business owners
Reporting the names of people who own or benefit from the business is 'onerous'? Hahaha, you have it good in the US.