Rep. Brad Halbrook today alerted business owners throughout the district to a new development in the Federal Corporate Transparency Act (CTA) of which they need to be aware.
“The CTA is federal Law that has far-reaching implications for businesses across the United States. It requires companies to disclose their ‘beneficial owners’—those who ultimately own or control the company—by helping close some loopholes that bad actors have exploited for years to launder illicit money, fund terrorist organizations, and commit other serious financial crimes,” Rep. Halbrook said.
Not every business falls under the CTA’s reporting requirements. 23 entities are exempt, including
- Large operating companies with over 20 full-time employees;
- Banks, credit unions, and investment firms that are regulated under other laws; and
- Nonprofits like charities and religious organizations.
But, Rep. Halbrook said, there’s a new twist. A federal judge in Texas recently issued a preliminary injunction against parts of the CTA. Some groups argue that the reporting requirements are overly burdensome or infringe on privacy. This legal challenge will delay implementation and hopefully lead to changes in how the law is enforced, so it’s a critical area to watch in the coming months.
“If you’re a business owner, it’s essential to understand your responsibilities under the CTA—and stay updated as the legal challenges unfold. As for now, the injunction is in place,” Rep. Halbrook concluded.
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