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The New Coffee Room

  1. TNCR
  2. General Discussion
  3. Don't blame The Resident. Or President Trump.

Don't blame The Resident. Or President Trump.

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  • JollyJ Offline
    JollyJ Offline
    Jolly
    wrote on last edited by
    #1

    From The Blaze:

    32 million small businesses are about to get blindsided | Blaze Media
    December 12, 2023
    The government proves once again with the Corporate Transparency Act that it doesn’t care about small businesses but only cares about what gives government officials more power. Unfortunately, entrepreneurs will pay the price.

    Have you heard of the Corporate Transparency Act? Most of the estimated 32 million small business owners, including sole proprietors, whom the new law affects have not. It was just recently put on my radar by a handful of people — quite a shock for a measure that takes effect at the start of the new year!

    A new reporting rule under the law means that businesses will need to file information with the Financial Crimes Enforcement Network (a bureau within the U.S. Department of Treasury), including personal information about the people who are associated with the business, or risk penalties for noncompliance. This is being done in the name of "fighting money laundering." Sure.

    The law is another administrative hassle that adds to small business owners’ paperwork requirements and takes entrepreneurs away from more productive economic activities.

    If you are not familiar with FinCEN, its mission is “to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.”

    Of course, the law includes around 20 exemptions, such as publicly traded companies, U.S. operating companies with 20 or more full-time employees and $5 million in sales, and some others, which means that the burden of this rule falls primarily on small businesses, including solopreneurs (aka one-person entities).

    While it is not uncommon for unsavory folks to use certain business structures to create shell corporations to launder money, actual instances of this are few and far between. This rule will impact tens of millions of law-abiding small businesses.

    FinCEN estimates it will take three hours for initial compliance (but who knows, depending on if you have to track down the information they are asking for or if you have questions). Then you will be responsible for letting FinCEN know of any future updates and changes.

    First, this is an unnecessary invasion of privacy for small businesses, creating a database filled with personal information. And it is hard to believe the law will do anything meaningful to stop money laundering or that the burden it generates will justify any possible small benefit to come from it. Not to mention the security risk of having yet another database full of information for cybercriminals and foreign adversaries to target.

    Moreover, it is another administrative hassle that adds to small business owners’ paperwork requirements and takes entrepreneurs away from more productive economic activities.

    Of course, there is also a fee of $85 to milk from the small businesses already burdened by this compliance — that is, if you understand what you are doing and don’t need to hire some type of adviser to assist you, which will cost you much more.

    And, again, very few people even know about the law.

    By the way, you can’t blame Joe Biden for this one. “The act falls under the scope of the Anti-Money Laundering Act of 2020 and was enacted as part of an expansive national defense authorization package on Jan. 1, 2021,” the Mississippi Business Journal reported. “The package passed through Congress with broad bipartisan support before being vetoed by then-President Donald J. Trump. Both houses of Congress voted to override the veto.”

    As it appears you have a year for initial compliance if you are an existing small business (but only 30 days after creation if you are starting a new one), I am likely to wait until the back half of 2024 to see if the rule gets revised or postponed before I waste any of my valuable time on it.

    But in the meantime, if you are a small business owner or service small businesses, put it on your radar and ask your legal and accounting advisers about it.

    The government proves once again that it doesn’t care about small businesses but only about what gives government officials more power. Unfortunately, entrepreneurs have to pay the price.

    “Cry havoc and let slip the DOGE of war!”

    Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton

    1 Reply Last reply
    • MikM Offline
      MikM Offline
      Mik
      wrote on last edited by
      #2

      Abomination.

      No wonder Congress is so despised.

      "The intelligent man who is proud of his intelligence is like the condemned man who is proud of his large cell." Simone Weil

      1 Reply Last reply
      • AxtremusA Offline
        AxtremusA Offline
        Axtremus
        wrote on last edited by Axtremus
        #3

        What does the CTA require?

        https://www.transparency.org/en/blog/explained-the-corporate-transparency-act

        The CTA requires anyone forming a company in the U.S. to provide the name, date of birth, current address, and unique identification number (from a passport or driver’s license, for example) of the company’s beneficial owner(s) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department. If changed, this information must be updated every year.
        .
        A beneficial owner is defined as a human being who exercises substantial control over the entity, or owns or controls 25 per cent or more of its ownership interests.
        ...

        So every business needs to be linked to at least one real person, one with substantial stake or control, identifiable through some government database. :man-shrugging:

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        • MikM Offline
          MikM Offline
          Mik
          wrote on last edited by
          #4

          You can put this one on the Biden admin. You know, Biden, friend to the working man unions.

          https://www.msn.com/en-us/money/careersandeducation/biden-to-apprentices-you-re-fired/ar-AA1lHtry?ocid=msedgntp&cvid=08881837e7eb4303857bfe4c3c274ae7&ei=53

          "The intelligent man who is proud of his intelligence is like the condemned man who is proud of his large cell." Simone Weil

          1 Reply Last reply
          • CopperC Offline
            CopperC Offline
            Copper
            wrote on last edited by
            #5

            Just like Mr. Obama, Mr. Biden hates this country and the people who build it.

            Of course that assumes that someone outside the government actually built something.

            Some presidents believe that nobody did.

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