AUSTIN – Today the Texas Public Policy Foundation filed a new lawsuit against the United States government. Under the recently adopted Corporate Transparency Act (CTA), the Federal Government now demands that virtually anyone who forms a state corporate entity must disclose a host of otherwise private information to federal law enforcement—even if they are not engaged in any interstate activity, and are not suspected of any crime.
The Federal Government is one of limited powers. Since the time of the Founding, corporate formation has been a matter of state, not federal law. Indeed, the Founders discussed and rejected proposals to allow regulation of corporate formation.
Like many Texans, TPPF’s clients formed LLCs under state law simply to hold property in a safe and legal way. This ordinary state-based activity should not force you to disclose private information into a federal law enforcement data base.
To read the text of the complaint, click here.
Texas Public Policy Foundation is a non-profit free-market research institute based in Austin that aims to foster human flourishing by protecting and promoting liberty, opportunity, and personal responsibility. The Center for the American Future defends the Constitution through legal opposition to government overreach. The Center launches legal challenges at the administrative, district, and appellate court levels on behalf of ordinary people whose lives, liberty, and property are threatened by government action in defiance of the Constitution.
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