Michigan Business Groups Ask Court to Invalidate Disclosure Law

Several Michigan business associations urged a district court to rule that a law requiring entities to disclose their beneficial owners to the federal government is unconstitutional because they say it impermissibly affects noncommercial entities and gathers evidence without a warrant.

The US and a collection of business groups, including the Small Business Association of Michigan, moved against one another to seek summary judgment on whether the Corporate Transparency Act is authorized under Congress’s power to regulate interstate and foreign commerce. The debate comes on the heels of another federal case in Alabama, where a court ruled the CTA unconstitutional and ...