The Sarbanes-Oxley Act was passed in 2002 after a number of corporate scandals including Tyco International, WorldCom, and most notably, Enron. While this legislation does not apply to private firms, it is important information for entrepreneurs to know because it dictates how all public companies are required to disclose financial information and highlights some of the faulty accounting and dishonest business practices which contributed to the recession of the early 2000s. This article focuses on how Sarbanes-Oxley affects small businesses.