WAYNESBORO – Rotarian Bill Dick, a Waynesboro attorney, spoke on “Small Entity Compliance” and how both the federal and state governments are requiring more paperwork from small businesses.
A recently enacted federal bill would require businesses with less than $5 million in revenues and/or fewer than 20 employees to file information with the government. The apparent intent of the bill is to stop illegal criminal operations and terrorist activities.
“It’s an odd requirement since these entities are formed in the states, not with the federal government,” Dick said. Actions by the Trump administration apparently have compliance with the act on hold for now.
In Pennsylvania a new requirement means all businesses must file an annual report with the state. Formerly. the report was required only every 10 years. Failure to comply would result in cancellation of a business’s registration. While it might not have much effect on day-to-day business, the cancellation could be a legal problem if a business were sued and was no longer registered as a limited liability company.
The Pennsylvania annual report requirement begins this year, but Dick said the consequences of non-compliance will actually take effect in 2027.
