As if SOX weren't causing enough problems, especially for small companies, there may be far worse problems on the horizon. The GAO has issued a report on company formations to the Senate Permanent Subcommittee on Investigations, Committee on Homeland Security and Governmental Affairs. The report addresses the concern that "�shell� companies, which have no operations, can be used for illicit purposes such as laundering money." As discussed here, the report could be the precursor of an enormous expansion of federal power over the smallest firms.