The Corporate Transparency Act and Its implications for small businesses

By: Colton Adams, Leah Bennion, and Eric Lyons

Small businesses play an essential role in the U.S. economy. Millions of small businesses are formed annually in the United States, accounting for a significant share of U.S. economic activity. The Small Business Administration estimates that there are over 33 million small businesses in the United States. These small businesses employ 61.7 million Americans—46.4% of all private sector employees—and have created 62.7% of net jobs over roughly the past three decades.

In today’s business landscape, however, small businesses face challenges from fierce competition, shifts in consumer preferences, and challenges with the ever-changing legal environment. Among these, the Corporate Transparency Act and its new reporting requirements (including the BOI report) have introduced new compliance challenges which will affect over 32.6 million state-chartered businesses, most of which are small businesses. As businesses adapt to the requirements of the CTA, it is critical to understand its implications and take proactive steps to ensure compliance, particularly for businesses with complex organizational structures that need to decipher the intricacies of beneficial ownership. Click here to learn more about these implications and some potential strategies to ensure compliance.

Also, note that the deadline for existing companies (formed prior to January 1, 2024), to file their BOI report is December 31, 2024.

If you or your business need assistance navigating the Corporate Transparency Act, Meridian Law’s team is here to help. Please do not hesitate to contact our team with any questions by telephone at (615) 229-7499, email at info@meridian.law, or through our contact form at www.meridian.law.