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Recent Blog Posts
Fifth Circuit Reverses Course on Reinstating the Corporate Transparency Act Reporting Deadlines
The uncertainties surrounding the Corporate Transparency Act ("CTA") continue with the most recent decision from the Fifth Circuit just days after it granted the Government’s emergency request to lift the nationwide injunction against the enforcement of the CTA.
As detailed in our prior blogs, the Government appealed the U.S. District Court’s injunction in early December, and the motions-panel of the Fifth Circuit Court of Appeals reinstated the CTA’s reporting deadlines on December 23, 2024.
On December 26, 2024, the merits-panel, who is tasked with ruling on the government’s appeal of the nationwide injunction, vacated the motions-panel’s order to reinstate the reporting deadlines "in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments . . ."
Court of Appeals Reinstates Corporate Transparency Act Reporting Deadlines
The 5th Circuit Court of Appeals has lifted the nationwide injunction issued by the U.S. District Court for the Eastern District of Texas in early December that blocked the enforcement of the Corporate Transparency Act ("CTA") and its January 1, 2025, Beneficial Ownership Information ("BOI") reporting deadline.
On December 23, 2024, the appeals court determined that the government made a strong showing on its likelihood of success on the merits of defending the CTA’s constitutionality and stayed the lower court’s injunction. The three-judge panel disagreed with the lower court’s assessment that enforcement of the CTA exceeds Congress’s powers and stated that the CTA’s reporting requirements are well within Congress’s broad authorities to regulate economic activity under the Constitution’s Commerce Clause.
In response to the 5th Circuit’s ruling, FinCEN announced new reporting deadlines to alleviate pressure on reporting entities that may not be prepared to meet the original January 1st deadline:
Government Appeals the Nationwide Injunction Against Enforcement of the Corporate Transparency Act
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act ("CTA") and its January 1, 2025, Beneficial Ownership Information ("BOI") reporting deadline.
As detailed in our prior Blog, the CTA requires most entities formed or registered to do business in the United States to file information about the entity and the individuals who own or control the entity with the Financial Crimes Enforcement Network (FinCEN).
In Texas Top Cop Shop, Inc., v. Garland, (E.D. Tex., No. 4:24-cv-478), Federal Judge Amos Mazzant granted the plaintiffs’ motion for a preliminary injunction and ruled against the enforcement of the act until further determinations are made regarding the constitutionality of the CTA. The Court reasoned that the implementation of the CTA likely exceeds Congress’s powers, and that enforcement of a potentially unconstitutional law is against public interest. Preliminary injunctions are temporary measures, and the Texas District Court’s ruling is not a final determination of the CTA’s constitutionality. Notably, Judge Mazzant’s decision is in direct conflict with other federal district court rulings that denied plaintiffs’ motions for preliminary injunctions in their challenges to the constitutionality of the CTA.
What Happens If There Is No Partnership Agreement?
They say that teamwork makes the dream work. In fact, many of America’s most successful small businesses were founded by teams of two, many with no partnership agreement in place when they were first formed. Some of these dynamic duos went on to lead the world’s most lucrative companies
However, not every casual business partnership will end with its members becoming billionaires. That’s why it does not make sense for most businesses to start with no business partnership agreement ironed out
A partnership agreement lays out the responsibilities of each partner in the business. It will also detail how much of the business each partner owns and how much profit and loss each partner is responsible for. A well-crafted partnership agreement also includes rules about how you will manage the business and addresses succession planning issues, such as the death or departure of a partner.
An experienced Milwaukee business lawyer can help you work out the details of your Wisconsin partnership agreement. The Mallery s.c. team handles all manner of partnership formation and helps partners put partnership agreements in place.
What is Liability Insurance?
By Attorney Samantha S. Bailey
Email: sbailey@mallerysc.com
Phone: 414-727-6294
Liability Insurance is your protection against monetary amounts you could owe as a result of a judgment against you in civil litigation. Another word for this is "indemnity." Indemnity in insurance law represents a contractual requirement for your insurance company to financially compensate the losses incurred by you for claims covered in your policy. Liability insurance may be Commercial General Liability insurance which provides general liability coverage to businesses for incidents such as slip and falls, property damage, etc. in the commercial setting. Liability insurance may also be found in professional, home, and automobile liability insurance policies for claims such as car accidents, dog bites, malpractice claims, or other injuries that occur on your property. In whatever form you may have your liability insurance, it is important to understand your policy and the restrictions on your potential coverage to ensure your insurance company covers your loss and defends you against damages sought against you. The Wisconsin litigation attorneys here in Milwaukee at Mallery s.c. handle all types of liability insurance coverage questions and disputes.
How Does Wisconsin Handle The Partition Of Real Estate?
By Stephen L. Lovell
Email: slovell@mallerysc.com
Phone: 414-727-6297
There are often occasions when one may share ownership of real estate with another person. Many times, that business or personal relationship will run its course. However, that does not solve the problem of what to do with the real estate. When at least two co-owners of real property cannot agree on how best to use or dispose of a piece of real estate, either of them can seek partition.
What is Partition?
In Wisconsin, every co-owner who no longer wishes to own their interest in the real estate has a right to partition their interest in the property, no matter what ownership percentage of the property they own. Chapter 842 of the Wisconsin Statutes governs the partition of real estate in Wisconsin.
The Corporate Transparency Act
The Corporate Transparency Act (“CTA”), enacted in 2021, goes into effect on January 1, 2024. The CTA was enacted to combat illicit activity, such as tax fraud, money laundering and financing of terrorist activities. Most entities and closely held businesses organized or operating in the United States will be required to file information about the entity and the individuals who own or control these entities with the Financial Crimes Enforcement Network (FinCEN). Each Reporting Company must file a Beneficial Ownership Information report (“BOI report”) with FinCEN detailing the Beneficial Ownership of the Reporting Company and its Company Applicants.
What entities are required to report?
All Reporting Companies must comply with the CTA. Subject to limited exemptions, “Reporting Companies” include all legal entities registered to do business in the United States, including corporations, limited liability companies, partnerships, certain types of trusts, and any other type of entity that is registered or formed by a filing with a secretary of state’s office or similar state agency.
Recent Wisconsin Property Tax Assessment Decision Adds Hurdles For Appeals
By Christopher L. Strohbehn
Email: cstrohbehn@mallerysc.com
Phone: 414-727-6291
As the end of the year quickly approaches, for those challenging their property taxes in Wisconsin, it brings about a bevy of deadlines and procedural entanglements. A recent decision issued by the Wisconsin Supreme Court in Saint John’s Cmtys. v. City of Milwaukee, 2022 WI 69 (Wis. 2022), has done nothing to make that easier for taxpayers or their Wisconsin property tax lawyers.
In the Saint John’s case, the Wisconsin Supreme Court determined that Saint John’s claim for recovery of unlawful taxes pursuant to section 74.35, Stats., was procedurally deficient. In so doing, it held that the "plain language of this statute requires Saint John’s to first pay the challenged tax or any authorized installment payment prior to filing a claim." Id. at ¶ 3.
Dealing With Your Examination Under Oath
By Attorney Christopher L. Strohbehn
Email: cstrohbehn@mallerysc.com
Phone: 414-727-6291
Introduction
One of the last things you want to deal with when your family home or your business has been damaged is jumping through all the hoops and paperwork that your insurance company requires. One of those hoops that is commonly seen after a sworn proof of loss is filed is an insurance company’s request for an Examination Under Oath (EUO).
Receiving a letter for an Examination Under Oath (EUO) can be a triggering experience, especially when dealing with a property damage claim in Wisconsin. Usually by that time you or your business has paid significant amounts of money for insurance premiums and the response in your time of loss is to put every aspect of the claim under a microscope. Rest assured, when you receive this request for an Examination Under Oath (EUO), the correct move is to be on high alert and contact a lawyer.
What to Do When Your Business Has Been Served With a Lawsuit?
By Christopher L. Strohbehn
Email: cstrohbehn@mallerysc.com
Phone: 414-727-6291
When another party serves your business with a lawsuit, it can be a stressful and overwhelming experience. However, it is essential to remain calm and take immediate action to protect your business’s financial interests. Here are the key steps your business should consider taking if you find yourself in this situation in Wisconsin:
Contact an Experienced Milwaukee Business or Civil Litigation Attorney:
- The first and most crucial step is to consult with an experienced Wisconsin business or civil litigation attorney. Our team at Mallery, sc., is here to provide you with expert guidance throughout the legal process. Not only should you contact an attorney, but you should do so quickly. Depending on the type of summons and complaint your business has received, you may have either 20 days or 45 days to respond in Wisconsin circuit court.
Blog
Fifth Circuit Reverses Course on Reinstating the Corporate Transparency Act Reporting Deadlines
Posted Dec 27, 2024
The uncertainties surrounding the Corporate Transparency Act ("CTA") continue with the most recent decision from the Fifth Circuit just days after it granted the Government’s emergency request to lift the......Read More
Court of Appeals Reinstates Corporate Transparency Act Reporting Deadlines
Posted Dec 26, 2024
The 5th Circuit Court of Appeals has lifted the nationwide injunction issued by the U.S. District Court for the Eastern District of Texas in early December that blocked the enforcement......Read More
Government Appeals the Nationwide Injunction Against Enforcement of the Corporate Transparency Act
Posted Dec 10, 2024
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the Corporate Transparency Act ("CTA") and its January......Read More
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