Corporate Transparency Act adds confusion for small businesses
The Corporate Transparency Act is a controversial legislation passed in 2021 to combat money laundering and other financial crimes. Shown is the U.S. Department of the Treasury building in Washington. (Jose Luis Magana/AP Photo file)
Alex Canale filed all of the necessary paperwork to meet the requirements of the Corporate Transparency Act, controversial legislation passed in 2021 to combat money laundering and other financial crimes.
It took six months because his company, D Canale & Co., has several subsidiaries, including Old Dominick Distillery, that have to comply with the law.
“What is, I guess, unique or weird is that, let’s say I move, buy a new house in Memphis, then we have to re-regulate every single one of the LLCs that I’m attached to,” Canale said.
“I don’t know why they need to know that I moved to a different house,” he said. “Anybody that is an officer or a beneficiary of any of those LLCs has to comply, and so it’s a massive amount of paperwork that I don’t believe needs to be done.”
Complying with the law time-consuming, expensive and confusing, according to business owners and attorneys, which is why it has been blocked — and unblocked — numerous times by various courts since it was passed.
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Corporate Transparency Act D Canale & Co. butler snow FinCen Subscriber OnlyAre you enjoying your subscription?
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Julia Baker
A lifelong Memphian, Julia Baker graduated from the University of Memphis in 2021. Other publications and organizations she has written for include Chalkbeat, Memphis Flyer, Memphis Parent magazine and Memphis magazine.
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