At the end of 2020, lawmakers passed, and the president signed the National Defense Authorization Act (NDAA) which included the Corporate Transparency Act (CTA). NSBA has ardently opposed the CTA--also called the "Beneficial Ownership Rule" due to its highly burdensome reporting requirements that will impact ONLY the smallest of businesses.
Throughout the process, NSBA warned lawmakers that the CTA threatens the privacy of law-abiding, legitimate small-business owners, despite it's goal of stemming money-laundering.
Beneficial ownership provisions would require ONLY the smallest businesses to file new reports and register significant personal identifying information for all owners—including their names, dates of birth, and addresses with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) detailing all “beneficial owners” of the company. Failure to comply with these reporting requirements would be a federal crime with civil penalties of $500 per day up to $10,000 and criminal penalties of up to 4 years in prison.
Although its ultimate inclusion--and passage--in the NDAA was a blow to NSBA and our small-business members, the fight is NOT over.Please contact your Senators and Representatives TODAY and urge them to repeal the CTA.