McGeehan Law
McGeehan Pascale, PLC
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3554 Chain Bridge Road, Suite 205
Fairfax, VA 22030
​703.273.5303
 
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McGeehan Law

Update to The Corporate Transparency Act

3/5/2024

 
​On March 1, 2024, a decision was handed down by Judge Liles C. Burke, a Judge of the United States District Court for the Northern District of Alabama, ruling that the Corporate Transparency Act is unconstitutional because it exceeds the federal government’s authority.  The government’s argument for its authority to promulgate the Act was based on the foreign affairs power (since the CTA’s main purpose is to prevent money laundering, especially by offshore actors) and the Commerce Clause.  In light of the fact that the CTA requires reporting by entities that have registered with state Secretaries of State, Virginia State Corporation Commission, Maryland SDAT, regardless of the localized nature of their activities, the court found both of the government’s arguments unconvincing.  I expect the decision will doubtless be appealed to the11th Circuit and the written opinion is unclear whether the holding will be national.  The case is unreported.  The opinion can be found at National Small Business United et. al v. Yellen et. al, Case No. Number 5:22-cv-1448 (N.D. Alabama J. Burke).

    Author

    John P. McGeehan is the managing member of McGeehan Pascale, PLC. His practice focuses on business structures, especially new, emerging, small businesses and not for profit organizations, all business transactions, employment law, real estate, commercial leasing, estate planning and litigation before administrative agencies and all courts.

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mCgeehan pascale, plc IS TAKING PRECAUTIONS IN LIGHT OF THE CDC ADVICE FOR THE CORONAVIRUS.  WE ARE WORKING EVERY DAY TO ANSWER QUESTIONS, DRAFT DOCUMENTS AND OTHERWISE TO SERVE OUR CLIENTS' LEGAL NEEDS.   ALL OF OUR STAFF ARE IN GOOD HEALTH AND OUR WISH FOR OUR CLIENTS IS THAT THEY ALSO REMAIN IN GOOD HEALTH.   IF THE NEED ARISES, OUR EMPLOYEES HAVE PAID SICK LEAVE AVAILABLE TO THEM.  IF THAT OCCURS, WE MAY TAKE A BIT LONGER FOR SOME THINGS, FOR WHICH WE ASK YOUR UNDERSTANDING.   IF POSSIBLE, WE ASK THAT OUR CLIENTS AND ATTORNEYS WITH WHOM WE DEAL DO SO BY TELEPHONE OR EMAIL TO AVOID PERSON TO PERSON CONTACT.  IF YOU SUSPECT YOU HAVE BEEN EXPOSED TO THIS VIRUS AND WE HAVE HAD PERSON TO PERSON CONTACT IN THE PRIOR 14 DAYS, PLEASE LET US KNOW THAT.

WE DISINFECT, THROUGHOUT THE DAY, ALL AREAS IN OUR OFFICE THAT MAY BE TOUCHED BY PEOPLE.  THE NEW ENGLAND JOURNAL OF MEDICINE PUBLISHED AN ARTICLE SAYING THAT SOME SURFACES MAY HOLD THE CORONAVIRUS VIRUS FOR UP TO 72 HOURS and UNVERIFIED SOURCES REPORT IT CAN BE LONGER.   OUR BUILDING ALSO HAS ESTABLISHED PROCEDURES DESIGNED TO PROTECT PERSONS COMING INTO THE BUILDING.   ALL COURTS IN WHICH WE REGULARLY PRACTICE HAVE ESTABLISHED PROCEDURES THAT RESCHEDULE OR POSTPONE HEARINGS, GENERALLY, UNTIL AFTER MID-APRIL OR MID-MAY AND LEGAL TIMELINES HAVE BEEN ADJUSTED. 

we concluded that we are exempt from the mandates announced for virgina on March 23, 2020, provided we continue the sanitation procedures outlined above and do not have more than 10 people CONGREGATED AT the same time.  however, we prefer contacts by phone or email.  if you must meet in person, please call first so we can determine if some or all of the matters can be handled by phone or email.
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