The National Small Business Association (NSBA) on November 9, 2023, published a survey it conducted of small businesses regarding the Corporate Transparency Act. The most startling statement in the survey is “The average small-business owner is looking at compliance costs for CTA of nearly $8,000 in the first year alone.”
Here are some of the interesting findings discussed in the survey:
- 47% of small business owners are unaware of the CTA.
- 48% said their business has only one beneficial owner.
- 52% said their business has two or more beneficial owners.
- In addition to filing the CTA reports on their own business, nearly half of all small-business owners will be reported on as a beneficial owner for another business.
- 56% of small business owners said they plan to understand and comply with the CTA on their own, without outside advice. The regulations are so vague, confusing, and ambiguous, the likelihood that these businesses will inadvertently run afoul could spell disaster for millions of small businesses.
- 44% of small business owners said they plan to understand and comply with the CTA by relying on a third party.
- Of the 44% who plan on using a third party 71% said they would ask their accountant.