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nonsense about stopping people from working in an
industry. Bottom line: business owners need their
secrets and customers protected.
4. Business ownership disclosures: The Treasury
Department's rule would require detailed business
ownership information, which could cause issues in
Seven new rules Delaware, Wyoming and Nevada, and a few other
states that don't disclose ownership on publicly
available corporate documents. The exemptions
for SMBs in 2023 puzzle me: companies with 20 or more employees
or $5 million in revenue don't have to comply. That's

By Allen Kopelman just wrong. FinCEN and the IRS want to know who
owns these small companies. Another attack on
Nationwide Payment Systems small business owners.

hen you see a law you don't like, ask your- 5. Immigration services fee for businesses: This rule
self what you did about it before it was raises the fee from $40 to $50 up to $1,000 to bring
voted into law. Did you participate in the workers into the United States. I like that. With the
W Request for Comment period? Did you con- massive layoffs in the tech sector, many willing and
tact your senator or state representative and explain why able U.S. workers need jobs, and foreign workers
the law could be harmful to your business, industry and will have to go home within 60 to 90 days without
economy in general? It's easier to challenge a proposed jobs unless they find new employment.
law than an official rule. 6. Tougher rules, regulations on fund managers,
venture funds: Let's not fight this. It's designed to
Through the years, payments leaders, including yours protect everyone from unscrupulous businesses
truly, have been vocal about laws they deem unfair, and ensure we don't have another FTX nightmare.
restrictive or potentially harmful to our industry. Trade This is also why the SBA needs better controls.
associations organize Washington D.C. fly-ins and
respond to legislative requests for comment. Merchants 7. Reprieve on payment network transaction require-
collectively stand up to policymakers, making sure their ments from IRS: Passing the rule about reporting
voices are heard. Considering the economic headwinds $600 or more on 1099 K from Venmo, PayPal, Zelle,
we're facing, we need your support. cash app, etc., has been delayed. The rule about re-
porting $20,000 or 200 transactions cumulatively
In Episode 142 of the B2B Vault podcast, "7 New Rules for across all payment types is still on track. The IRS
Small Business in 2023," we discussed why business owners will try to figure this out by the end of 2023. Mean-
need to take these matters seriously. The following rules while, many P2P service providers are requiring
are in play and could adversely impact your business, if people to turn their accounts into business accounts.
passed:
Your vote counts
1. 1099 classifications: This law, which stipulates how
independent contractors–1099 will be classified, Every time a new payment solution or fintech product
could disrupt many businesses. New classifications launches, regulators promulgate new guidelines designed
for independent and gig workers are already an is- to protect consumer and merchant privacy, security and
sue in California under AB 5, and the federal gov- best interests. It takes time, however, for guidelines to
ernment is following suit. For details, visit https://bit. become law. As proposed bills make their way through
ly/42mpyeZ. the Senate and the House of Representatives, every vote
counts.
2. SBA lender network expansion: This hot mess be-
gan during COVID, when public and private sec- While not all of these rules will become law, they reflect
tors rapidly innovated to help business owners get changing attitudes on Capitol Hill, and changes are
much-needed working capital and were often ex- coming quickly. It's time for all business owners to be
ploited by fraudsters. Now there are lawsuits and proactive and add our comments and concerns to the
new rules. Fintech lenders must be held accountable, public record. Let's work together to craft sustainable,
and the government needs to do better with control- economically sound, business-friendly policies.
ling fraud.
Allen Kopelman, a serial entrepreneur, is co-founder and CEO of
3. Banning non-compete agreements: The Federal Nationwide Payment Systems Inc. and host of B2B Vault: The Payment
Trade Commission is proposing broadly banning Technology podcast. Email him at allen@npsbank.com and connect
non-compete agreements, which could encompass on LinkedIn www.linkedin.com/in/allenkopelman and Twitter@
non-disclosures and more. Let's hope this ends the AllenKopelman.

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