Press Release from Idaho Secretary of State Phil McGrane
In Idaho, we take immense pride in being the least regulated state in the nation, which has led to unprecedented economic growth and job creation. The federal government could take a page from our book by repealing the Federal Corporate Transparency Act (CTA), which puts unnecessary regulation on the backs of Idaho’s small businesses.
As Idaho’s Secretary of State, I have the privilege of working closely with our business community, both big and small. My office oversees Idaho’s business registration system, which has fostered trust and transparency, allowing businesses to engage confidently with one another. Most of these are small businesses that are the lifeblood of Idaho’s economy and the cornerstone of our communities. For decades, our system has worked to strengthen our economy and protect our business community.
Through the new CTA, a looming federal deadline is fast approaching, impacting nearly every small business in Idaho. The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has mandated that all small business owners must report detailed “beneficial ownership information” to the federal government by January 1, 2025. Failure to comply could result in steep fines or, worse—accusations of aiding criminal activities like terrorism.
The intent behind the Federal Corporate Transparency Act (CTA) and these new reporting requirements is to combat money laundering, terrorism, and other crimes. While addressing these threats is important, this program goes too far. It assumes guilt rather than innocence, treating every small business owner as a potential criminal unless they prove otherwise.
Since these regulations were announced, our office has heard from thousands of Idaho’s small business owners who are confused and frustrated. They struggle to make sense of the program’s requirements and how they apply to their businesses. This level of uncertainty is unacceptable, especially when it concerns their livelihoods.
The federal government’s rollout of this program has been marked by confusion and frustration. Neither state governments nor our federal counterparts seem to fully understand the complexities of the new requirements fully, yet Secretaries of State across the country are tasked with notifying businesses of these obligations. Many of us feel this role is uncomfortable and unjust.
Adding to the frustration, as of writing this, a U.S. District Court recently issued a nationwide injunction halting the implementation of the Federal Corporate Transparency Act (CTA), which the Biden Administration has appealed. This injunction could be lifted at any time. Idaho businesses deserve a permanent remedy from this overbearing federal overreach.
I’m encouraged by Idaho Senator Jim Risch’s sponsorship of Senate Bill 4297, Repealing the Big Brother Overreach Act. I hope other states will join in this effort. There is still time to course-correct and alleviate this program’s unnecessary burden on small businesses. I believe in Idaho’s congressional delegation and their ability to stand up for the interests of our state’s business community.
Small business owners deserve respect, trust, and support — not suspicion and fear. It’s time for the federal government to focus on policies that empower our business community to thrive, not ones that hinder their success. Let’s work together to ensure Idaho remains a place where small businesses can continue to prosper and drive our state’s incredible growth.
Phil McGrane was elected Idaho’s twenty-eighth Secretary of State and took office on January 2, 2023, and previously served as elected Clerk of Ada County from 2019-2022. He holds a bachelor’s degree in philosophy, a juris doctorate, and a Master of Public Administration.
