Beneficial Ownership Reports Deemed Unreasonable Search by Judge

A band of Michigan business owners, nonprofits, and limited liability companies demonstrated that the Corporate Transparency Act violated their Fourth Amendment rights against unreasonable search, a Michigan federal judge ruled.

Judge Robert J. Jonker of the US District Court for the Western District of Michigan granted summary judgment to the challengers Monday, just one day after the US Treasury Department announced that it would end CTA enforcement against US citizens and domestic businesses. The court’s order follows that of at least three other district courts—one in Alabama and two in Texas—which deemed the law likely unconstitutional.

The Small Business Association ...