Corporate Transparency Act UPDATE

On December 17, 2024, the Eastern District of Texas denied the Federal Government’s request for a stay of the nationwide preliminary injunction previously entered in the Texas Top Cop Shop case.  The Government has filed an emergency motion in the U.S. Court of Appeals for the Fifth Circuit asking that the injunction be dissolved.  The Fifth Circuit has not issued a ruling as of December 18, 2024.

Thus, at least for now, reporting companies do not need to file beneficial ownership reports by year end.

As noted previously, the nationwide injunction is temporary in nature and whether the CTA is ultimately enforced depends on a number of factors, including the incoming Presidential administration, Congressional action or inaction on the issue, and whether the preliminary injunction is made permanent.  We will continue to monitor the situation and provide updates as they occur.

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 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. ***