A federal judge in Maine ruled that the Corporate Transparency Act is justified under the commerce clause, citing Congressional findings that millions of newly formed corporate entities every year impact interstate commerce.
The law imposed new reporting requirements for corporate entities to disclose their beneficial ownership information to a nonpublic database. Congress gave a rational basis for concluding that the sheer number of corporate entities formed every year could impact interstate commerce, the US District Court for the District of Maine said, granting summary judgment to the government Feb. 14.
Congress found that more than two million entities are formed ...