For the small businesses supporting school transportation, the Corporate Transparency Act may be more than a speed bump in 2025.

In hopes of preventing criminals from hiding illegal acts through corporate anonymity, Congress passed the Corporate Transparency Act in 2021, sandwiched into a larger 1,482-page defense bill. The law initially took effect on Jan. 1, 2024, requiring companies to disclose stakeholder information to the Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN, by Jan. 1, 2025.

In an order that called the law outright Orwellian, however, a federal judge on Dec. 3 granted an injunction blocking the Corporate Transparency Act from being enforced — a decision that U.S. attorneys quickly appealed, putting the fate of the act in legal limbo.

If the Fifth Circuit Court of Appeals upholds the lower court’s decision, the Corporate Transparency Act will become a thing of the past. But if the appeals court overturns the injunction, businesses may have to file the required benefit ownership report very quickly.

While the federal judge in Texas granted an injunction blocking the Corporate Transparency Act from being enforced, a federal judge in Oregon denied a similar request in September, which will be reviewed by the Eleventh Circuit Court of Appeals.

Parties often ask the U.S. Supreme court to review split decisions among appeals court, but since the high court holds arguments for less than 1 percent of the cases submitted, it is impossible to know whether it will step in.

In the meantime, small businesses should keep the law on their radar. If it is revived, failure to report required information could result in $591 fines per day of violation as well as up to two years in jail and up to $10,000 in penalties.

“In a limbo like this the best practice is to be ready to file,” said Megan Henderson, an attorney at the Longmont, Colorado firm Lyons and Gaddis.

Specializing in real estate and business transactions, Henderson said she spent much of the past year advising clients on becoming compliant under the Corporate Transparency Act.

Most businesses that filed paperwork with their state to become incorporated would be required to disclose their beneficial owners with the federal government, but exemptions abound. One big carve out is for larger companies generating more than $5 million in gross receipts annually. The umbrella of “beneficial owners” might be broader than some people think and covering not just owners but indispensable managers as well.

FinCEN published a brief guide to help businesses navigate the requirements. While neither a lawyer nor an accountant is required to file the paperwork, the process can seem daunting, especially for mom and pop establishments with limited time and resources.

“It’s going to impact the contractors that service the school districts,” said Chris Wojciechowski, an accountant at the Bonadio Group in Rochester, New York.

Wojciechowski said the regulation is more burdensome to small businesses with fewer resources.

“There’s such a tight timeline regarding compliance,” he continued. “So how is our businesses going to deal with this? They’re going to have to be nimble and be on top of the transition if they turn the law back on.”

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Even if the Corporate Transparency Act is ultimately defeated in the courts, businesses should still be on the lookout for similar legislation at the state level. One of the first copycat laws comes from New York lawmakers, requiring companies to report ownership by Jan. 1, 2026.

“It’s tricky because every state has their own regulations. I’ve seen companies who operate in one state come to another state and get slapped pretty hard with fines because they did not dig deep into the state regulations for school buses in that state,” said Mark Szyperski, president of On Your Mark Transportation, a consultancy firm based in Nashville, Tennessee.

For Szyperski, who grew up on the seat of his father’s Greyhound bus between Bay City and Detroit, Michigan, transportation is a family business.

Upon entering a new state, Szyperski said he often arranges to speak with the state’s school bus administrator to go over the basics. To be ready for the court’s outcome on the Corporate Transparency Act, he set up a Google alert and included news of the injunction in his newsletter.

“People need to be aware that [the injunction] could be overturned and then you best be getting ready to put the information into the system,” he said.

The post Small Businesses Can’t Take Eyes Off Corporate Transparency Act appeared first on School Transportation News.

The National Association for Pupil Transportation is honoring the life and work of George Edward (Ed) Donn, who died on Thursday at a hospital in Marietta, Georgia. He was 85.

Donn was a sitting board member on the NAPT Foundation, the member education vehicle for NAPT that he helped form in 1999 with the late Don Carnahan and Tom Celitti. He served two terms as NAPT president in 1986-1987 and 1995-1997, only the second to be elected twice along with Carnahan.

NAPT recognized Donn with its Distinguished Service Award in 1992 and inducted him into the Hall of Fame in 2006.

“Ed was an amazing gentleman, leader, and colleague. I valued his wisdom and dedication to our industry. His unwavering commitment to the organization will leave an indelible mark on our community,” said NAPT and Foundation Executive Director and CEO Molly McGee Hewitt in an email to members on Saturday.

An accompanying NAPT statement added that Donn “played a crucial role in shaping NAPT’s mission that promoted safety, education and support for all involved in the student transportation sector.

“His insights and expertise were invaluable, guiding many initiatives that have benefited countless individuals. Beyond his professional contributions, Ed was known for his kindness and generosity; he took the time to mentor fellow members by sharing his knowledge, embodying a spirit of collaboration and teamwork.”

He helped develop and implement the NAPT Professional Certification Program and served as a state delegate for five National Conferences on School Transportation. He served as co-chair of the school bus specifications section at the 11th NCST in 1990 and the 12th NCST in 1995. He was also a board member on the National Association of State Directors of Pupil Transportation Services (NASDPTS) Supplier’s Council.

On Monday, NASDPTS released a statement calling Donn “an industry icon and gentleman.”

After retiring from Whitfield County Public Schools in Georgia as director of transportation in 2001, Donn co-founded school bus surveillance company 247 Security in 2005 with his Bus Vision business partners Rick Oram and Robert Scott after the company was purchased by Quang Nguyen, the owner of Toronto MicroElectronics and current CEO and CTO of 247 Security.

“Ed offered his vision of the school bus industry, after a long career in pupil transportation, and was a huge influence on the development of 247 Security into a leading brand in the school bus industry,” Scott said in an email to School Transportation News on Saturday. “Ed was a dear friend over these past 20 plus years up. He was our roadmap across the country as we worked to build 247 Security from the ground up. I don’t know if I have ever met someone as well liked by all as Ed. He always wanted to know what he could do to help.”

Scott added that Donn “was like a big brother to me” and called him “generous with his advice and had a keen sense of the needs of those around him.”

“I will miss our long talks that covered a broad range of topics. Those talk could turn into debates and I’m pretty sure he figured that he never lost one! I will miss my friend,’ Scott concluded.

Several times a year, STN would seek Donn’s counsel on a variety of topics related to the school bus industry and its history.

His career began in 1962 as a biology teacher and track coach for Prince George’s County Public Schools in Maryland. He told STN that he became the assistant director of transportation in 1966 because the role resulted in a pay increase. What he didn’t know about student transportation he learned over the next eight-plus years.

He then accepted a principal position with Washington County Schools, also in Maryland, in 1972 and within three years was named the director of transportation. He remained in that position until his retirement in 1991 and his move to Georgia and Whitfield County Public Schools. He was also an active member of the Georgia Association for Pupil Transportation.

After co-founding 247 Security, Donn was a fixture at industry trade shows representing the company, where he served as a consultant. He also owned his own consulting company, Donn Associates, since 1985.

Donn attended the University of Maryland on a track scholarship and graduated with a biology degree. He later obtained is master’s degree in administration and supervision from Frostburg State University.

Donn was preceded in death by Sandi, his wife of 60 years. He is survived by daughters, Cheryl Melis and Leslie Watt (Don Watt); four grandchildren, Chelsea Melis, Gabriella Melis, Lauren Watt Luke (Patrick Luke), and Adam Watt (Lauren Johnson Watt); and sister-in-law Delores (Dodie) Kennedy Barnes.

His funeral is planned for Oct. 19 at Calhoun First Presbyterian Church in Calhoun, Georgia. More details are available online.

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