The United States District Court for the Eastern District of Texas is set to hold a hearing regarding the National Federation of Independent Business's (NFIB) efforts to challenge the Corporate Transparency Act (CTA). The case, titled Texas Top Cop Shop, Inc., et al. v. Garland, et al., focuses on NFIB's request for a preliminary injunction against the beneficial ownership reporting requirements mandated by the CTA.

Beth Milito, Executive Director of NFIB’s Small Business Legal Center, expressed relief over the court's decision to hear the case. She stated, "For many of America’s small businesses, the beneficial ownership reporting deadline is January 1, 2025. For them, time is of the essence, and they need to know whether they must comply with a reporting requirement that mandates revealing private and personal identifying information."

The lawsuit argues that the CTA oversteps congressional authority and imposes undue burdens on small businesses by requiring disclosure of private information. It was filed alongside entities such as Texas Top Cop Shop, Data Comm for Business, Mustardseed Livestock, Russell Straayer, and the Libertarian Party of Mississippi.

The NFIB Small Business Legal Center is known for defending small business owners' rights in courts across the nation. Currently involved in over 40 cases at various judicial levels, including federal and state courts as well as the U.S. Supreme Court, NFIB remains an active participant in legal matters affecting small businesses.