Corporate Transparency Act and Implications for Entity Formation and Transaction Structures

The 116th United States Congress passed the National Defense Authorization Act for Fiscal Year 2021, which includes the Corporate Transparency Act (the CTA). The CTA seeks to provide appropriate safeguards to identify bad actors engaged in terrorism, money laundering, sex trafficking and other heinous acts through “shell companies” that are not actually engaged in a bona fide business venture but instead are created for the principal purpose of shielding the owners from liability for engaging in illicit behavior and, in many cases, their identities.

Fate of Chain Restaurants: Spring of Hope or Winter of Despair

COVID-19 has undoubtedly impacted the restaurant industry. Many iconic chains have been forced to close their underperforming locations. Huge franchisees of these chains have also reorganized under Chapter 11. But there is still hope. With reduced competition, bidding wars and increased merger-and-acquisition activity of restaurant chains have developed