Transparency law burdens small-business owners like me
- Cindy Mitchell is the owner of Jon Top Distributing in Des Moines, and a member of the National Federation of Independent Business.
CORRECTION: This guest essay has been updated. A previous version misidentified which Iowa members of Congress are co-sponsors of the Repealing Big Brother Overreach Act. Reps. Zach Nunn, Randy Feenstra, Ashley Hinson and Mariannette Miller-Meeks are co-sponsors of the bill.
As the owner of a family-owned countertop distribution facility in Des Moines, I’ve weathered my share of challenges, supply chain disruptions to labor shortages. But now, Washington has served up a fresh helping of bureaucracy that’s adding an extra burden for me and my fellow business owners: the Corporate Transparency Act, or CTA.
Let me paint you a picture of what this means for folks like me. Here I am, coordinating shipments across Iowa and trying to keep up with the ever-increasing costs of doing business. Now, I’m required to file yet another report detailing who owns what percentage of my company and providing personal information about each owner.
The government tells us this new law will help catch money launderers and financial criminals. That’s all well and good, but I can’t help wondering if they understand what this means for legitimate small-business owners who are already stretched thin. Between managing inventory, meeting payroll, and keeping up with existing regulations, adding another compliance requirement feels like trying to load one more pallet onto an already-full truck.
The timing couldn’t be more challenging. With inflation still biting into our margins and customers becoming increasingly price-sensitive, every hour spent on administrative tasks is an hour not spent growing our business or serving our community. And let’s be honest: Most small-business owners don’t have a legal department on speed-dial. We’re having to figure this out ourselves or pay consultants to help us navigate these new waters.
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What really keeps me up at night are the penalties for non-compliance. We’re talking about potential fines up to $10,000 and even the possibility of jail time. The pressure to get this right is immense, especially when you consider that any changes in ownership need to be reported within 30 days. In our business, where we sometimes need to make quick decisions about bringing in new partners or restructuring to adapt to market conditions, this adds another layer of complexity to an already complicated process.
The good news is that Congress has a chance to right this wrong by providing permanent relief. Rep. Warren Davidson, R-Ohio, and Sen. Tommy Tuberville, R-Alabama, have introduced the Repealing Big Brother Overreach Act (H.R. 425/S. 100) to revoke the CTA.
Sen. Chuck Grassley and Sen. Joni Ernst must join the rest of the Iowa delegation immediately before the government tightens its grip on small businesses.
I understand the importance of financial transparency and fighting criminal activity. But I can’t shake the feeling that legitimate small businesses like mine are carrying a disproportionate burden of this regulatory initiative. We’re not the sophisticated operations with teams of lawyers and compliance officers. We’re the backbone of America’s economy — the family-owned businesses, the local employers, the community supporters who know our customers by name.
At what point does the cost of compliance outweigh the benefits? When do we say enough is enough? For now, like thousands of other small-business owners across Iowa and America, I’ll do what we always do — adapt, comply, and keep pushing forward, even if it means a few more late nights at the office.
Cindy Mitchell is the owner of Jon Top Distributing in Des Moines, and a member of the National Federation of Independent Business.
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