Source: US State of Missouri
For Immediate Release: February 19, 2025
Missouri Secretary of State Denny Hoskins, CPA, Calls for Repeal of Burdensome Corporate Transparency Act
JEFFERSON CITY, MO – Missouri Secretary of State Denny Hoskins, CPA, has joined 19 other Secretaries of State in urging President Donald J. Trump to support the repeal of the Corporate Transparency Act (CTA), a federal law that places costly and confusing reporting requirements on small businesses.
“The Corporate Transparency Act is government overreach at its worst—hitting small businesses with unnecessary red tape while letting big corporations and nonprofits off the hook,” said Secretary Hoskins. “Missouri’s entrepreneurs should be focused on growing their businesses, not filling out government paperwork under threat of fines or jail time.”
The CTA requires millions of small businesses to report detailed ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), with penalties of up to $10,000 and two years in prison for noncompliance. Meanwhile, large corporations and tax-exempt organizations—entities more likely to engage in illicit financial activity—are exempt from these requirements.
The coalition of Secretaries of State highlighted the CTA’s flawed implementation, the lack of clear guidance from FinCEN, and the financial burden on small business owners, which is estimated to cost $145 million in compliance expenses nationwide.
A bill has been introduced in Congress—H.R. 8147, the “Repealing Big Brother Overreach Act”—to fully repeal the CTA. Secretary Hoskins strongly supports this effort and urges lawmakers to act swiftly.
“I stand with small business owners across Missouri who are frustrated, confused, and rightfully concerned about this law,” Hoskins said. “Repealing the CTA is the right thing to do to protect our entrepreneurs and strengthen our economy.”
The full letter, signed by 20 Secretaries of State, has been sent to the White House for consideration and is attached to this release. Secretary Hoskins remains committed to advocating for Missouri’s businesses and cutting through unnecessary government bureaucracy. An additional editorial penned by the Secretary is attached for use.
For more information, please contact: Rachael Dunn, Director of Communications, [email protected].
About Secretary of State Denny Hoskins
Denny Hoskins, CPA, was elected Missouri Secretary of State in November 2024. With a strong background in business and public service, he is committed to improving government efficiency, transparency, and supporting Missouri families.
Final Jt. SoS Corp. Transparency Act Letter v20250214.pdf
Repeal the Corporate Transparency Act to Protect Small Businesses
By Missouri Secretary of State Denny Hoskins, CPA
Small businesses are the backbone of Missouri’s economy. They create jobs, drive growth, and keep our communities strong. But instead of supporting them, Washington bureaucrats are making it harder to do business.
The Corporate Transparency Act (CTA), passed in 2021, was supposed to combat money laundering. Instead, it’s a bureaucratic disaster that unfairly burdens Missouri’s small businesses while exempting big corporations and nonprofits.
What Does the CTA Do?
The law requires nearly every small business with fewer than 20 employees to report detailed ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). If a business owner fails to comply—whether due to confusion or an honest mistake—they could face fines of up to $10,000 and even jail time.
This means a family-owned restaurant in Kansas City, a small farm in rural Missouri, or a startup in St. Louis must navigate complex federal reporting requirements, while large corporations and tax-exempt organizations—entities far more likely to engage in financial misconduct—are exempt.
Why Is the CTA a Problem?
Since the law took effect, my office has been flooded with concerns from small business owners, accountants, and attorneys who are confused about how to comply. The federal government has provided little guidance, leaving entrepreneurs to figure it out on their own—under threat of steep penalties.
Even worse, experts estimate compliance with the CTA will cost small businesses nationwide over $145 million in administrative expenses. That’s money and time that could be spent hiring workers, expanding operations, and serving customers—not filling out government paperwork.
Repealing the CTA Is the Right Move
I have joined 19 other Secretaries of State in calling on President Trump and Congress to repeal the CTA immediately. There is already a solution—H.R. 8147, the “Repealing Big Brother Overreach Act”, which would end this unnecessary burden on small businesses.
Missouri’s small businesses should not be treated like criminals just for trying to make an honest living. It’s time to repeal the CTA and let entrepreneurs focus on what they do best—creating jobs and growing our economy.
Denny Hoskins, CPA, serves as Missouri’s 41st Secretary of State, where he advocates for small businesses, election integrity, and economic growth.