In a significant victory for small businesses, the National Small Business Association (NSBA) successfully advocated for a one-year delay in implementing the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. The delay was included in the Continuing Resolution spending bill released today by Congress that funds the federal government through March 14, 2025.
The NSBA said it was at the forefront of opposition to the CTA, filing the first national lawsuit challenging the law and lobbying extensively on Capitol Hill. The delay offers temporary relief to millions of small business owners facing complex compliance requirements under the CTA.
“The NSBA has been leading the charge against the CTA for years,” said NSBA President and CEO Todd McCracken. “There is widespread confusion and widespread concern among America’s smallest businesses about the BOI reports, and including this delay provides much-needed predictability for small businesses.”
The CTA, which requires small businesses to provide detailed ownership information to the federal government, has been criticized for its regulatory complexity. Penalties for noncompliance can include fines of up to $591 per day and potential jail time of up to two years.
McCracken, Speaker Mike Johnson (R-La.) and Representatives Tom Emmer (R-Minn.), Zach Nunn (R-Iowa), French Hill (R-Ariz.), and Patrick McHenry (R-N.C.).
“This delay is a perfectly timed holiday gift for the millions of small business owners across the country who face a brutally complex regulatory regime,” McCracken said.
While the one-year delay offers temporary relief, the NSBA remains committed to challenging the CTA. The association’s first lawsuit is currently pending before the Eleventh Circuit Court of Appeals.
“On behalf of our 65,000 members and 31 million small business owners across the United States, I applaud Congress for taking on CTA’s truly formidable burden,” McCracken said.
The CTA’s reporting requirements, originally set to take effect in January 2025, have now been pushed back to 2026. During this time, NSBA intends to advocate for changes to the law to protect small businesses from excessive regulatory burdens.