Small businesses are usually LLC. This will most likely target C-Corps than anything else. But yes, this will make life hard for anyone running a remote C-Corp and does not have enough revenue to be "legitimate". This also will inflate costs for small businesses running legitimate operations: Rent will go up, Harder to recruit people and Less profit or no profit. I lived near a place like this. It was impossible to run a profitable coffee-shop or restaurant because there was lots of competition, little customers and sky-high rent costs. It seemed like 90% of the activity right there was simply fake or driven by the money laundering economy.