What it means: New nationwide beneficial ownership information (BOI) reporting requirements are on hold while the court considers NFIB’s lawsuit challenging the law. Most small businesses are not required to comply with the BOI reporting requirements at this time.
Our take: “The court’s reinstatement of the nationwide injunction is a welcome sigh of relief for small businesses. Since being told earlier this week that they must urgently submit their BOI reports, our nation’s small businesses have experienced enormous chaos and confusion. Thankfully, the court’s latest decision recognizes that the CTA and BOI reporting requirements pose serious constitutional questions,” said Rob Smith, Senior Attorney of NFIB’s Small Business Legal Center in a statement last week.
Take Action: Congress can provide certainty for small businesses and stop the back-and-forth in the courts by repealing the unnecessary small business registry requirement. Urge Congress to quickly repeal it:
A decision by a federal appeals court on Dec. 26 is good news for 32 million small businesses. An NFIB lawsuit argues the Corporate Transparency Act (CTA) is unconstitutional and the court’s latest decision in the case puts the law’s burdensome and unnecessary reporting requirements on indefinite hold while the courts continue considering the case. It also nullifies a previous Fifth Circuit order that allowed the government to begin enforcing the CTA and BOI reporting requirements again.
The court reversed course from earlier in the week, putting the BOI reporting requirements on indefinite hold while the courts consider NFIB’s lawsuit challenging the Corporate Transparency Act, Texas Top Cop Shop, Inc., et al. v. Garland, et al. As of this update – until or unless the courts decide differently – most businesses are not required to comply with the CTA’s BOI reporting requirements.
If not fully repealed or found unconstitutional, 32 million small businesses throughout the country will once again be subjected to this burdensome and heavy-handed statute, including the nearly 300,000 NFIB member businesses represented in this lawsuit. NFIB supports the Repealing Big Brother Overreach Act, legislation that would repeal the CTA and permanently relieve small businesses of these BOI reporting requirements.
Small business owners are encouraged to take action by sending a message to their lawmakers in the U.S. House and Senate, urging them to quickly and fully repeal the CTA. If you haven’t yet made your voice heard with your federal elected officials, click here to send them an email now.
