DECEMBER 2024 UPDATE – CORPORATE TRANSPARENCY ACT REQUIREMENTS HALTED BY FEDERAL COURT

Corporate Transparency Act Requirements Halted by Federal Court

A federal court in Texas halted the implementation of the Corporate Transparency Act (CTA).  The current ruling is a preliminary injunction, and we do not yet know whether the injunction will be upheld or if an appellate court will determine that the injunction is not applicable nationwide or is premature.  Given that the deadline for compliance is so close (1/1/2025), we are advising clients who have not yet filed, that the most cautious approach is to proceed with filing under the CTA until a final judgment or further developments occur in this case or other related challenges to the CTA.

If you choose not to file, then you need to be prepared to file quickly in the event that the injunction is lifted and the current compliance deadline of January 1, 2025, is not changed.

 

Please see our previous news post, THE CORPORATE TRANSPARENCY ACT REPORTING REQUIREMENTS FOR BUSINESSES, to learn more about this topic.