The Corporate Transparency Act (CTA) was signed into law in December 2020 and will require ONLY certain businesses with fewer than 20 employees to disclose owners’ information to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). While the intent of the law was to stem money laundering, the CTA is not only bad policy, it is unconstitutional. Failure of a small business to comply—intentional or not—could result in up to $10,000 in fines and up to two years in prison.

NSBA applauds Treasury and FinCEN for the March 2025 decision to no longer enforce CTA-mandated beneficial ownership information (BOI) requirements. However, a comprehensive legislative solution is still needed in order to ensure that small businesses are permanently protected.

NSBA is in the midst of a lawsuit against Treasury over the implementing regulations of the CTA. NSBA won the first ruling at the District court, and in September 2024 made strong arguments before an appellate court panel of judges. As a result of this lawsuit, only NSBA members as of March 1, 2024, would continue to be exempt from reporting requirements if Treasury and FinCEN renewed enforcement actions in the future.

Thankfully, Rep. Zach Nunn (R-IA) and Sen. Tim Scott (R-SC) have introduced legislation to delay the CTA by one year (H.R.736), which has already passed out of the House. Additionally, Rep. Warren Davidson and Sen. Tommy Tuberville recently re-introduced a bill to repeal the CTA outright (H.R.425/S.100). Please take a moment TODAY to urge lawmakers to support every effort to permanently reject this harmful law.