The National Federation of Independent Business (NFIB) has filed an amicus brief in the case National Small Business United, et al. v. U.S. Department of Treasury at the U.S. Court of Appeals for the Eleventh Circuit. The case revolves around the Corporate Transparency Act (the Act), which established beneficial ownership reporting requirements, and questions Congress's authority to regulate noneconomic activity under the Commerce Clause.
The NFIB submitted the brief in collaboration with the National Association of Home Builders of the United States, the Associated General Contractors of America, and the American Farm Bureau Federation.
Beth Milito, Executive Director of NFIB’s Small Business Legal Center, expressed concerns about the impact of this law on small businesses. "This law places an immense burden on small business owners. Not only must they provide their private information to be catalogued, but well-meaning owners can face egregious penalties for any paperwork errors that are mistakenly made," she said. Milito further argued that these intrusive reporting requirements have little connection with regulating economic activity, a requirement under the Commerce Clause.
In its brief, NFIB contended two primary points: firstly, to pass the substantial effects test under the Commerce Clause, Congress must be regulating economic activity—defined as introduction, production or exchange of goods or services; secondly, because the Act regulates noneconomic activity, it fails to meet the Commerce Clause’s substantial effects test.
The NFIB Small Business Legal Center is committed to protecting small business owners' rights in courts across America. Currently active in over 40 cases in federal and state courts nationwide and in the U.S. Supreme Court, NFIB continues its advocacy for small businesses.
