On Friday, November 29, Mayor Eric Adams announced a new outreach campaign to help small businesses comply with the federal Corporate Transparency Act (CTA) ahead of the upcoming holiday shopping season. The CTA requires U.S. corporations and LLCs to report their ownership details to the U.S. Department of Treasury by Tuesday, December 31, 2024. Businesses that fail to do so could face fines of over $500 each day.
With more than 320,000 contacts, the city has reached 39,000 businesses, potentially saving owners $19.5 million every day in federal penalties. This program demonstrates the administration’s dedication to supporting small businesses and reducing bureaucratic red tape.
“Since day one, our administration has prioritized cutting red tape for small businesses and helped them better navigate regulations at all levels of government,” said Mayor Adams. “Educating small businesses about the Corporate Transparency Act is fundamental to making sure small businesses avoid unnecessary fines and continue to power New York City’s recovery, unhampered.”
The multi-agency initiative involves the Department of Small Business Services (SBS), alongside other city agencies, hosting webinars, providing multilingual resources, and canvassing neighborhoods across the five boroughs. SBS Commissioner Dynishal Gross emphasized how education protects business owners. “We know that small business owners want to comply with the law. Our education and compliance specialists help entrepreneurs across New York City save time and money while avoiding fines, fees, and scams,” she said.
The city is also combating predatory practices by third-party actors charging businesses unreasonably high fees to file CTA forms, which are free and straightforward to complete. The city’s outreach campaign includes webinars in partnership with the U.S. Department of Treasury, with resources available in 18 languages.
Mayor Adams urged New Yorkers to support local entrepreneurs during the holiday season through the “Shop Your City Challenge,” which encourages shopping at neighborhood businesses. Assemblywoman Jenifer Rajkumar highlighted the importance of this initiative, stating, “With [the upcoming holiday season] upon us, we are supercharging our small businesses by educating them on new federal ownership disclosure rules.”
This announcement reflects the administration’s ongoing commitment to supporting economic growth, helping businesses save millions in fines and fees, and enhancing New York City’s standing as a center for the expansion of small enterprises.
