Small Business Alert: How This Secret Law Could Land You in Jail

Dear Reader,

Let’s talk about the Corporate Transparency Act (CTA). Passed quietly under the radar, this law is a massive bureaucratic burden masquerading as a noble crusade against crime. Sure, on paper, it’s supposed to combat money laundering and terrorism. But you know who’s paying the price? Small business owners. People like you and me.

• Massive Penalties: Up to $10,000 in fines and two years in jail for failing to comply with the CTA’s requirements.

• Hidden Burden: Small businesses must file detailed reports, while large companies often get a free pass.

• Act Fast: The CTA applies to all companies formed after January 1, 2024, and to changes in ownership or key information.

The requirements are brutal. Fail to comply? Up to $10,000 in fines. And yes, jail time. Two years. Just for missing a filing. That’s no joke.

So, what’s the deal?

Three Types of Information to File

1. Reporting Company Information: This is your company name, DBA, address, formation jurisdiction, and a unique ID number, like an EIN. If you’re thinking, “That’s simple,” think again. Get it wrong, and you’re toast.

2. Company Applicant Information: Starting January 1, 2024, every new company formed has to report details about the individual filing the paperwork. Name. Birthdate. Address. Identification image. Big Brother is watching.

3. Beneficial Ownership Information: Own 25% or have “substantial control” over a company? Then your info—name, birthdate, address, ID with an image—must be filed. They define “substantial control” so broadly it’s like trying to catch a cloud.

Here’s the kicker: big companies don’t have to worry. If they have more than 20 full-time employees, $5 million in gross receipts, and a physical office in the U.S., they’re exempt. But if you’re a small entrepreneur, you’re on the hook. This is a hidden tax on people trying to build wealth.

Steep Penalties

The consequences for ignoring this? Devastating. Up to $10,000 in fines. Two years in prison. Ignorance won’t save you. If you make a mistake, the government isn’t giving you a slap on the wrist—they’ll take your wrist clean off.

Until they repeal this beast (if they ever do), protect yourself. Stay compliant. Make sure any service provider you use knows what they’re doing. Penalties are too high to gamble on this one.

A word of advice: Stay alert, stay informed, and don’t let this secret tax be the one that crushes your dreams.

Kiyosaki Uncensored