• Wed. Dec 6th, 2023

Small Businesses Prepare for the Forthcoming Surge


Nov 21, 2023

Small businesses are often hit hardest by regulations, and the latest federal legislation is no exception. The Corporate Transparency Act (CTA), enacted in 2021, aims to combat money laundering by assigning the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) the task of identifying shell companies used for illegal transactions. This new law also requires businesses with less than $5 million in annual sales and fewer than 20 employees to create a registry.

The CTA could have a significant impact on millions of small businesses, as they may not have the resources to comply with the new reporting requirements or the financial means to pay fines for noncompliance. It is crucial for small business owners to stay informed about these new regulations and their potential consequences.

Overall, the CTA is an ambitious effort to tighten money-laundering laws, but its implications for small businesses could be considerable. As this law is implemented, small business owners must closely monitor any changes and ensure that they are in compliance to avoid potential fines and penalties. The CTA highlights how small businesses can be disproportionately affected by federal regulation.

Leave a Reply