NSBA's latest survey indicates expensive changes on the horizon for small-business owners.
FOR IMMEDIATE RELEASE
Tuesday, Nov. 14, 2023
Molly Day, NSBA
Washington, D.C. – The National Small Business Association (NSBA) today released a new member survey highlighting the massive burden small businesses face in complying with the Corporate Transparency Act (CTA). Among the key data: the average small-business owner is looking at compliance costs for CTA of nearly $8,000—in the first year alone.
“Not only are small businesses facing compliance costs far beyond what Treasury has suggested, the overwhelming majority either have no idea what the CTA is or have no idea if they will be required to report,” stated NSBA President and CEO Todd McCracken. “The education campaign on this massively burdensome new mandate has been nonexistent—and we’re less than two months away from the first wave of compliance requirements.”
The CTA will require businesses with fewer than 20 employees to disclose detailed personal information on ALL “beneficial owners” to the Department of Treasury’s Financial Crimes Enforcement Network. NSBA has filed suit against Treasury over the CTA, and oral arguments are scheduled for Monday, Nov. 20 at 10:00 a.m. at the U.S. District Court for the Northern District of Alabama in Huntsville.
The NSBA survey also found that, in addition to filing the CTA reports on their own business, nearly half of all small-business owners will be reported on as a beneficial owner for another business.
When it comes to understanding the law, majority of small-business owners plan to understand and comply with the CTA on their own, absent outside advice. Unfortunately the regulations are so vague, confusing and ambiguous the likelihood that these businesses will inadvertently run afoul could spell disaster for millions of small businesses.
“A major concern with the CTA is its potential to open small businesses to additional cybersecurity threats. The average cost to remedy a data breach is $15,297 among small-business owners, including recovering stolen funds, software upgrades, staff and external advisor fees,” stated McCracken.
Please click here to download the full report.
About NSBA | Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsba.biz or follow us at @NSBAAdvocate.