Court Calls Beneficial Ownership Information Reporting Requirement Into Question

Last month, we shared with you our article about the Corporate Transparency Act and the obligations of lawyers to clients and to firms. Since then, a federal court in the Northern District of Alabama entered a final declaratory judgment concluding that the Corporate Transparency Act (“Act”) exceeds the Constitution’s limits on Congress’s power. The order enjoined enforcement of the Act against the plaintiffs, including the Beneficial Ownership Information reporting requirements. At this time, only those named plaintiffs or members of the National Small Business Association as of March 1, 2024 are not subject to the Act’s requirements. We are continuing to monitor and will bring you additional updates as the case develops.