UPDATE Corporate Transparency Act

Update on the Corporate Transparency Act

On Friday, March 1, 2024, a United States District Court in Alabama ruled that the Federal Corporate Transparency Act, which requires businesses throughout the United States to file reports with the U.S. Department of the Treasury that identify their beneficial owners, is unconstitutional. This case can be found under the name National Small Business Association v. Yellen, Case No. 5:22-cv-01448-LCB. This decision, if upheld, will have a far-reaching impact on the reporting obligations of small businesses currently required under the Act, which became effective January 1, 2024.

 

The District Court’s decision will likely be appealed, and it may take several months for a full resolution to determine if this decision will be final. If you are a new or existing business owner who has not yet made this ownership report filing, contact EQUES® Law Group with any questions on whether you should continue to file your ownership report by the current deadlines. If you are planning to start a new business, you should discuss with counsel whether this report should still be filed at the time you create your business.

 

Moriah Hinton
Business Attorney
EQUES® Law Group

Leave a Comment

Your email address will not be published. Required fields are marked *