Shell Company Disclosure Exemptions Prompt Calls for Changes

A recently crafted law to force anonymous shell companies to reveal their true owners has rankled small business advocates, who plan to push for tweaks.

Large companies are mostly exempted from the Corporate Transparency Act, which became law this month. Only those with 20 or fewer employees and $5 million or less in annual sales would need to report ownership information to the Treasury Department’s financial crimes unit.

Other corporate entities—such as registered public accounting firms, certain investment companies, bank holding companies, and public utilities—also are exempt from the disclosure requirements.

Small business advocates say the new requirements unfairly target ...