3/4/2024
In a ruling late last week issued by Judge Liles Burke of the U.S. District Court in Huntsville, Alabama, the Corporate Transparency Act (“CTA”) was declared unconstitutional. The judge agreed with the plaintiffs that asking a company’s owners to present personal data including name and address, and to upload copies of their identification documents such as their driver’s license or passport, was a case of congressional overreach.
While the immediate impact of Judge Burke’s opinion is not entirely clear, there is little doubt small businesses that are not members of the trade organization that brought the Alabama suit, must still comply with filing Beneficial Reports by the requisite deadlines. There is also little question that the Justice Department will appeal the case to the 11th Circuit as well as seek a pause on the injunction. The case may ultimately be resolved by the United States Supreme Court. However, this may take some time.
If you would like assistance determining if your business is a reporting company, who are the beneficial owners of your business and, if applicable, a company applicant of your business, PK Law can help. Please contact a PK Law Corporate and Real Estate Attorney or information@pklaw.com to discuss an engagement for these services.
The filing of the Beneficial Ownership Information (“BOI”) Report is the responsibility of the entity and its beneficial owners. PK Law Attorneys will not take any action or file any BOI reports, whether or not currently or previously engaged as an attorney for the entity or any of the entity’s beneficial owners, unless expressly engaged to do so.
PK Law has recently engaged a third party vendor, FinCEN Report Company, to assist with the review and filing of BOI Reports under the Corporate Transparency Act. In the event you engage PK Law and the firm recommends you file a BOI Report, you will receive a welcome email from FinCEN Report Company inviting you to open an account and purchase a subscription for their filing service.
Interested in learning more? https://www.pklaw.com/articles/happy-new-year-business-owners-does-your-business-need-to-comply-with-the-corporate-transparency-act-cta/
