Small Businesses File Lawsuit Against Beneficial Ownership Requirements
WASHINGTON, D.C. (May 28, 2024) – NFIB filed a lawsuit against the U.S. Government in the United States District Court for the Eastern District of Texas challenging the Corporate Transparency Act (CTA) and beneficial ownership reporting requirements.
“The Corporate Transparency Act created one of the largest reporting requirements for small businesses,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Small businesses are at risk of being subjected to civil and criminal penalties for simple paperwork violations and must give every level of the government access to private and sometimes confidential information of millions of small business owners. The CTA is unconstitutional, and we ask the Court to prohibit the Treasury Department and FinCEN from enforcing the Act and beneficial ownership requirements.”
The lawsuit argues that the CTA exceeds Congress’s authority over the states, it improperly compels speech and burdens associations, it unconstitutionally compels disclosure of private information, and the reporting rule is not in accordance with the law. NFIB filed the lawsuit with the Texas Top Cop Shop, Data Comm for Business, Mustardseed Livestock, Russell Straayer, and Libertarian Party of Mississippi.
