The National Federation of Independent Business (NFIB) has expressed approval following a decision by the U.S. District Court for the Eastern District of Texas regarding the case Texas Top Cop Shop, Inc., et al. v. Garland, et al. The court granted NFIB's request for a preliminary injunction against the enforcement of the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements by the U.S. Department of Treasury.
Beth Milito, Executive Director of NFIB’s Small Business Legal Center, commented on the ruling: “This ruling is a huge victory for small businesses nationwide, and just in time.” She noted that many small businesses were approaching a deadline to comply with the CTA's requirements, which she described as an invasion of privacy and a misuse of time. "Thankfully, the Court agreed and granted a preliminary injunction, giving small business owners a reprieve from this burdensome rule,” Milito added.
The lawsuit filed by NFIB argues that the CTA oversteps Congress's authority over states and infringes on rights protected by both the First and Fourth Amendments. The legal action was taken in partnership with The Center for Individual Rights (CIR), along with entities such as Texas Top Cop Shop, Data Comm for Business, Mustardseed Livestock, Russell Straayer, and Libertarian Party of Mississippi.
As NFIB and its nearly 300,000 members were involved in this case, enforcement of BOI reporting requirements has been blocked nationwide. This decision highlights what NFIB describes as "the power that NFIB members hold when they stand up and speak out in protection of their rights."
The NFIB Small Business Legal Center continues to defend small business owners' rights across various courts in more than 40 cases at federal and state levels throughout the United States.
