Yellowhammer Times

The National Federation of Independent Business (NFIB) is calling for the full repeal of the Corporate Transparency Act, citing concerns over its impact on small businesses. In a guest column published by 1819 News, NFIB Alabama State Director Rosemary Elebash criticized the law, which requires small businesses to report ownership information to federal authorities.

Elebash explained that while the intention behind the law was to combat criminal activities involving shell companies, it places significant reporting burdens on legitimate small business owners. She stated, "You can’t stop criminals by politely asking them to turn themselves in, but that’s basically what Congress tried to do with a law called the Corporate Transparency Act."

According to Elebash, compliance with the law has been low due to its complexity. As of late last year, only about 11 million out of 32.6 million affected businesses had met the requirements. The mandate exposes owners to risks such as identity theft and subjects them to penalties for non-compliance.

She noted that President Trump had temporarily exempted U.S. small businesses from the rule, describing it as an “economic menace.” However, Elebash warned that because the law remains in effect, future administrations could resume enforcement: "This was a good move, but it doesn’t solve the problem as the rule is still on the books, and legislation creating it hasn’t been repealed. A future president or administration could easily start enforcing it again. That means more than 32 million small businesses—including over 450,000 here in Alabama—could face these burdens all over again."

Elebash further pointed out potential costs and privacy concerns associated with maintaining compliance databases accessible by multiple agencies without warrants or subpoenas.

She concluded by reiterating NFIB's commitment to opposing the law: "My association, the National Federation of Independent Business (NFIB), is still working hard to fight this law in Congress and in court. We want it gone for good." She urged Congress to provide permanent relief by repealing the act entirely.