In a significant victory for small businesses, the National Small Business Association (NSBA) has successfully advocated for a one-year delay in the implementation of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. The delay was included in a Continuing Resolution spending bill unveiled by Congress today, which funds the federal government through March 14, 2025.

The NSBA says it has been 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.

“NSBA has been leading the charge against the CTA for years,” said NSBA President and CEO Todd McCracken. “There is widespread confusion and massive concern among America’s smallest businesses about the BOI reports, and by including this delay, it provides much-needed predictability for small businesses.”

The CTA, which requires small businesses to submit detailed ownership information to the federal government, has been criticized for its regulatory complexity. Non-compliance penalties could include fines of up to $591 per day and potential jail time of up to two years.

McCracken credited key lawmakers for their efforts in securing the delay, including 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 to the millions of small-business owners across the country who were facing a wildly complex regulatory regime,” McCracken stated.

While the one-year delay offers temporary relief, the NSBA remains committed to challenging the CTA. The association’s lawsuit, the first of its kind, is currently awaiting judgment from the Eleventh Circuit Court of Appeals.

“On behalf of our 65,000 members and the 31 million small-business owners in the U.S., I applaud Congress for recognizing the massive burden the CTA truly is,” McCracken added.

The CTA’s reporting requirements, initially set to take effect in January 2025, are now postponed to 2026. During this time, the NSBA intends to continue advocating for changes to the law to protect small businesses from excessive regulatory burdens.

This article, “NSBA Secures One-Year Delay of Corporate Transparency Act Reporting Requirement” was first published on Small Business Trends