Many of you have inquired about the reporting requirements imposed by the Corporate Transparency Act (the “CTA”).  And we have been delaying a definitive response so we could assess political and legal developments related to the CTA’s enforcement.  Here is the latest development:

On December 3, 2024, a federal court in Texas imposed a nationwide preliminary injunction blocking enforcement of the CTA and staying the Act’s compliance obligations.  See Texas Top Cop Shop, Inc., et al. v. Garland, 4:24-cv-00478-ALM.  The Texas Top Cop Shop is one of many challenges to the constitutionality of the CTA pending in courts across the nation.  As the Texas Top Cop Shop and the other cases move forward, the question of whether the CTA will survive will be answered at some point in the future.  For the time being however, the takeaway is that currently reporting companies do not need to file beneficial ownership reports.

It must be noted that the nationwide preliminary injunction is temporary in nature and a final decision on the enforceability of the CTA’s reporting requirements will depend on a number of factors, including the incoming Presidential administration, Congressional action or inaction on the matter, and whether the preliminary injunction issued in Texas Top Cop Shop is made permanent.  We are continuing to monitor the latest developments.  At the same time, all business owners should continue to watch the news related to this Act and make individualized determinations on their reporting requirements and compliance.

If you have questions or concerns regarding the Corporate Transparency Act and its impact on your company, we are available to address any such questions.

*** The foregoing is a broad analysis provided for informational purposes only and does not represent a legal advice for any specific client or their situation.  As a result, it may not be relied upon as legal advice.  If you need legal advice you must contact our office directly regarding your specific situation. ***