Corporate Transparency Act Creates Regulatory Burden for Small Business

Michael Guta

Beyond their intended goal, the cost of government regulations have far-reaching consequences. As a result, the National Federation of Independent Business (NFIB) strongly opposes The Corporate Transparency Act of 2019.

Corporate Transparency Act of 2019

The bill, H.R. 2513, starts off like this:

It wants to ensure people who form corporations or limited liability companies in the U.S. disclose the beneficial owners. This is to prevent wrongdoers from exploiting U.S. corporations and limited liability companies for criminal gain. With the goal of assisting law enforcement in detecting, preventing and punishing different crimes. This includes terrorism, money laundering, and other misconduct involving U.S. corporations and limited liability companies, and for other purposes.

Any law-abiding individual will agree with what the bill is trying to do, but as they say, the devil is in the details. And one of the details is the fact that it places additional burdens on small businesses. The bill explicitly excludes businesses with more than 20 employees who generate more than $5 million in gross receipts or sales.

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