Small biz advocacy group wins court challenge against the Corporate Transparency Act

By MAE ANDERSON
AP Business Writer

NEW YORK (AP) — The National Small Business Association has won a court challenge against the Corporate Transparency Act, a law designed to combat money laundering. A federal court in Alabama on Friday ruled the legislation unconstitutional. The Corporate Transparency Act requires businesses to report owners and beneficial owners to an agency called the Financial Crimes Enforcement Network. But small business advocates say it’s too onerous to report the information required. Businesses with more than 20 employees and more than $5 million in sales can qualify for exemptions. But that leaves an estimated 32 million small businesses that aren’t exempt.