- Cindy Mitchell is the owner of Jon Top Distribution to des Moines, and a member of the National Business Federation of Independent.
As the owner of a family -owned family -owned distribution facility in des Moines, I have dropped my share of challenges, supply chain disruptions for lack of work. But now, Washington has served a new bureaucracy aid that is adding an extra burden on me and my business owners: the act of corporate transparency, or CTA.
Let me paint you a picture of what this means to people like me. Here I am, coordinating the shipments across Iowa and trying to continue with the ever -increasing costs of doing business. Now, I am asked to submit another report that details who owns my company percentage and providing personal information to each owner.
The government tells us that this new law will help capture money laundering and financial criminals. That’s all good and good, but I can’t wonder if they understand what this means to the right owners of the small business, who are already thin. Among the management of the inventory, the wage meeting and the continuation of existing regulations, the addition of another compliance requirement feels like trying to load one more pallet into an already full truck.
Time couldn’t be more challenging. With the inflation that still bites on our borders and customers becoming increasingly sensitive to prices, every hour spent on administrative tasks is an hour that is not spent to raise our business or serving our community. And let’s be honest: most small business owners do not have a legal department at speed. We need to understand this ourselves or pay consultants to help us navigate these new waters.
What really holds me at night are the sentences for disrespect. We are talking about possible fines up to $ 10,000 and even the possibility of time in prison. The pressure to get this right is great, especially when you consider that any changes to the ownership must be reported within 30 days. In our business, where we sometimes have to make quick decisions about bringing new partners or restructuring to adapt to market conditions, this adds another layer of complexity to an already complex process.
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The good news is that Congress has a chance to fix this error by providing permanent relief. Rep. Warren Davidson, R-Ohio and Sen. Tommy Tuberville, R-Alabama, have presented the detection act of the Big Brother Overach (HR 425/s. 100) to revoke CTA.
Sen. Chuck Grassley, Sen. Joni Ernst and Rep. Zach Nunn must join the rest of the Iowa delegation shortly before the government tightens its control into small businesses.
I understand the importance of financial transparency and combating criminal activity. But I cannot shake the feeling that small legitimate businesses like mine are carrying a disproportionate load of this regulatory initiative. We are not sophisticated operations with teams of lawyers and compliance officials. We are the backbone of the American economy-family-owned business, local employers, supporters of the community that we know our customers by name.
At what point the cost of compliance exceeds the benefits? When do we say it is enough? Right now, like thousands of other small business owners throughout Iowa and America, I will do what we always do, I respect and continue to move on, even if it means some other nights in the office .
Cindy Mitchell is the owner of Jon Top Distribution to des Moines, and a member of the National Business Federation of Independent.