Buckeye Reporter

The Cincinnati Enquirer recently featured a guest column by NFIB Ohio State Director Chris Ferruso discussing the Corporate Transparency Act and its potential impact on small businesses in Ohio. The law mandates over 30 million small businesses, including many in Ohio, to report personal information about their "beneficial owners" to the U.S. Treasury Department.

Failure to comply could result in significant penalties, including a $10,000 fine, daily late fees of $591, and up to two years in federal prison. According to Ferruso, a survey by the National Federation of Independent Business revealed that 83% of business owners are unaware of this mandate.

Proponents argue that the legislation is necessary for preventing criminals from using small businesses for money laundering and other illicit activities. However, Ferruso questions the effectiveness of this approach, suggesting that criminals are unlikely to comply with such regulations.

The mandate poses challenges for small family-run businesses lacking resources compared to larger corporations that have legal teams dedicated to compliance. Businesses with more than 20 employees are exempt from this requirement.

Efforts are underway to address these concerns. Earlier this month, NFIB members from across Ohio visited Washington D.C., urging lawmakers to reconsider the mandate. Additionally, U.S. Rep. Warren Davidson has co-sponsored the Repealing Big Brother Overreach Act aimed at eliminating this requirement.

Critics also express privacy concerns as the act allows broad access to personal information by various law enforcement agencies without requiring a subpoena in many cases. There is also fear that centralized data could become vulnerable to cyberattacks.

Ferruso concludes by urging Congress to repeal what he considers an onerous law before it causes harm during challenging economic times.