Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

32 million small businesses are about to get blindsided
The Blaze ^ | December 12, 2023 | Carol Roth

Posted on 12/18/2023 3:45:19 PM PST by Twotone

Have you heard of the Corporate Transparency Act? Most of the estimated 32 million small business owners, including sole proprietors, whom the new law affects have not. It was just recently put on my radar by a handful of people — quite a shock for a measure that takes effect at the start of the new year!

A new reporting rule under the law means that businesses will need to file information with the Financial Crimes Enforcement Network (a bureau within the U.S. Department of Treasury), including personal information about the people who are associated with the business, or risk penalties for noncompliance. This is being done in the name of "fighting money laundering." Sure.

The law is another administrative hassle that adds to small business owners’ paperwork requirements and takes entrepreneurs away from more productive economic activities.

If you are not familiar with FinCEN, its mission is “to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.”

Of course, the law includes around 20 exemptions, such as publicly traded companies, U.S. operating companies with 20 or more full-time employees and $5 million in sales, and some others, which means that the burden of this rule falls primarily on small businesses, including solopreneurs (aka one-person entities).

While it is not uncommon for unsavory folks to use certain business structures to create shell corporations to launder money, actual instances of this are few and far between. This rule will impact tens of millions of law-abiding small businesses.

FinCEN estimates it will take three hours for initial compliance (but who knows, depending on if you have to track down the information they are asking for or if you have questions). Then you will be responsible for letting FinCEN know of any future updates and changes.

First, this is an unnecessary invasion of privacy for small businesses, creating a database filled with personal information. And it is hard to believe the law will do anything meaningful to stop money laundering or that the burden it generates will justify any possible small benefit to come from it. Not to mention the security risk of having yet another database full of information for cybercriminals and foreign adversaries to target.

Moreover, it is another administrative hassle that adds to small business owners’ paperwork requirements and takes entrepreneurs away from more productive economic activities.

Of course, there is also a fee of $85 to milk from the small businesses already burdened by this compliance — that is, if you understand what you are doing and don’t need to hire some type of adviser to assist you, which will cost you much more.

And, again, very few people even know about the law.

By the way, you can’t blame Joe Biden for this one. “The act falls under the scope of the Anti-Money Laundering Act of 2020 and was enacted as part of an expansive national defense authorization package on Jan. 1, 2021,” the Mississippi Business Journal reported. “The package passed through Congress with broad bipartisan support before being vetoed by then-President Donald J. Trump. Both houses of Congress voted to override the veto.”

As it appears you have a year for initial compliance if you are an existing small business (but only 30 days after creation if you are starting a new one), I am likely to wait until the back half of 2024 to see if the rule gets revised or postponed before I waste any of my valuable time on it.

But in the meantime, if you are a small business owner or service small businesses, put it on your radar and ask your legal and accounting advisers about it.

The government proves once again that it doesn’t care about small businesses but only about what gives government officials more power. Unfortunately, entrepreneurs have to pay the price.


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: carolroth; compliance; corptransparencyact; fees; fincen; moneylaundering; policestate; shellcompanies; smallbusiness; soleproprietors; waronsmallbiz
Navigation: use the links below to view more comments.
first 1-2021-4041-54 next last

1 posted on 12/18/2023 3:45:19 PM PST by Twotone
[ Post Reply | Private Reply | View Replies]

To: Twotone

The Deep State like big business only.


2 posted on 12/18/2023 3:49:23 PM PST by Salman (It's not a slippery slope if it was part of the program all along. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

The end goal is government ownership of the means of production, or communism. This is a medium sized step towards their goal.


3 posted on 12/18/2023 3:49:51 PM PST by I want the USA back (Democracy dies when you take away from those who work and give to those who won't. Khrushchev.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

Was just talking about this with my friend from China (legal). She owned a business there and had similar experiences. The unannounced visits were the worse.


4 posted on 12/18/2023 3:50:41 PM PST by griswold3 (Truth, Beauty and Goodness. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

“Guilty until proven innocent.”


5 posted on 12/18/2023 3:51:24 PM PST by E. Pluribus Unum (The worst thing about censorship is █████ ██ ████ ████████ █ ███████ ████. FJB.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

Just another plan by these slimy greaseballs to help kill American productivity. Whadda sorry bunch of commie arseholes. Just shut it all down and quit paying taxes to these low- life bassturds.


6 posted on 12/18/2023 3:53:15 PM PST by lgjhn23 ("On the 8th day, Satan created the progressive liberal to destroy all the good that God created..." )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

I’m not reading all that just to conclude biden’s handlers are screwing Americans again.


7 posted on 12/18/2023 3:53:19 PM PST by subterfuge (I'm a pure-blood!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

Lond winded article written by a non-writer.

Be consise and just explain it.


8 posted on 12/18/2023 3:54:29 PM PST by Fledermaus (It's time to get rid of the Three McStooges; Mitch, Kevin and Ronna! 1 gone, 1 almost dead. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

And if 30 million of the 32 million small businesses don’t comply, simply because they don’t know about it…what are they going to do, arrest 30 million people?


9 posted on 12/18/2023 3:55:01 PM PST by Ancesthntr (“The right to buy weapons is the right to be free.” ― A.E. Van Vogt, The Weapons Shops of Isher)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

PFL


10 posted on 12/18/2023 3:56:47 PM PST by liberalh8ter ( Ephesians 6:10 - 18)
[ Post Reply | Private Reply | To 1 | View Replies]

To: subterfuge

Not Biden. Written while Trump was in office, vetoed by Trump and overridden by the swamp.


11 posted on 12/18/2023 3:57:08 PM PST by CaptainK ("If life's really hard, at least its short")
[ Post Reply | Private Reply | To 7 | View Replies]

To: Twotone

So will this include the cartels or white collar criminals like Joke Biden? Since the govt is all about fighting money laundering, right?


12 posted on 12/18/2023 3:59:07 PM PST by Prince of Space (Trump 2024!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Twotone

Maybe it is time to shut down my small business.


13 posted on 12/18/2023 3:59:12 PM PST by ActresponsiblyinVA
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ancesthntr

It is quite possible they will let this be bypassed this year and wait until they steal the 2024 election.

Then enforce it.


14 posted on 12/18/2023 3:59:37 PM PST by dforest
[ Post Reply | Private Reply | To 9 | View Replies]

To: Ancesthntr

Initially they will probably just use the law against any small business owners who might have ideas of running for office or serving on any candidates staff, advisory committee, etc.


15 posted on 12/18/2023 4:01:09 PM PST by piasa (Attitude adjustments offered here free of charge)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Twotone
“to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities” But it won't touch the endless funnel of laundered money from the likes of Book Publishers printing low volume tripe for 7 figure sums to Commie Rats like the Obamas.
16 posted on 12/18/2023 4:02:45 PM PST by DAC21
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ancesthntr

He said if we wanted to fight, he could use F 15’s on us.

https://www.youtube.com/watch?v=VfJtsQwpMhQ


17 posted on 12/18/2023 4:06:49 PM PST by Senormechanico
[ Post Reply | Private Reply | To 9 | View Replies]

To: Ancesthntr

“what are they going to do, arrest 30 million people?”

Problem is most USA people think they need to obey the law.
That is a concept I gave up on when Obama was elected.
Any law passed by Democrats is BS to be ignored.
save your money and keep a lawyer on speed dial.


18 posted on 12/18/2023 4:11:12 PM PST by rellic
[ Post Reply | Private Reply | To 9 | View Replies]

To: subterfuge

It wasn’t THAT long, & no, it wasn’t Biden screwing small business, it was congress. Trump vetoed the bill & they over-rode.


19 posted on 12/18/2023 4:11:33 PM PST by Twotone
[ Post Reply | Private Reply | To 7 | View Replies]

To: Ancesthntr

The Government doesn’t want or need to arrest anyone. They will just use a computer to send out letters with large fines and compounding penalties. If not addressed, it, well, compounds. Wouldn’t surprise me if it then rolled over to the IRS to encumber the business’ tax refunds. The government will eventually crush the noncompliance and put them out of business, which sounds like the point of the law.


20 posted on 12/18/2023 4:16:17 PM PST by rigelkentaurus
[ Post Reply | Private Reply | To 9 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-54 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson