The Corporate Transparency Act (CTA) has been a burden to small businesses, with its burdensome reporting requirements. To relieve this burden, legislation has been introduced to repeal the CTA. The National Federation of Independent Business (NFIB), which represents millions of small business owners, supports this legislation.

According to NFIB Vice President of Federal Government Relations, Jeff Brabant, the CTA imposes significant burdens on small business owners by subjecting them to civil and criminal penalties for minor paperwork violations. Additionally, it grants law enforcement agencies access to a vast database containing the private information of millions of small business owners. NFIB believes that the CTA is beyond repair and fully supports the repeal efforts led by Sen. Tommy Tuberville and Rep. Warren Davidson.

Under the CTA, corporations, LLCs, or similar entities with 20 or fewer employees and $5 million or less in gross receipts are required to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This rule went into effect on January 1, 2024, and is estimated to impact 32.6 million small businesses in the first year, with an ongoing impact on five to six million small businesses each year thereafter. NFIB has actively opposed the Corporate Transparency Act and is advocating for its repeal to alleviate the regulatory burden on small businesses.