BOI/CTA UPDATE: Appeals Court Reinstates - Then Suspends - Corporate Transparency Act Filing Requirement

UPDATE: Many recent changes have occurred related to the Corporate Transparency Act (“CTA”) and the requirement for all business owners to disclose their personal information to the US government. 

Here’s what’s transpired since a Texas federal court first suspended the CTA filing deadline on December 3, 2024: 

• On December 23, 2024, the 5th Circuit Court of Appeals reinstated the CTA and its filing requirements for business owners, extending the deadline from January 1, 2025 to January 13, 2025.
• On December 26, 2024, the 5th Circut reversed itself, suspending the deadline once again while it takes time to review the “parties’ weighty substantive arguments.”

What this means for you: As of now, the filing requirement is optional. However, as we’ve seen this week, this is subject to change on any given day, so check back here and we’ll keep you updated. In the meantime, to learn more about the CTA, including the filing requirements now and in the future, book a call with us to find out how we can support you and your family business in staying out of court and conflict:

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A federal judge in Texas issued a ruling this week that could affect millions of business owners across the country. Let's break down what this means for you and your business.

The Ruling and Its Immediate Impact

On December 3, 2024, a federal court issued a nationwide preliminary injunction blocking the Corporate Transparency Act (CTA) and its associated Reporting Rule. This means the January 1, 2025 deadline for beneficial ownership reporting has been suspended. If you were scrambling to gather your company's ownership information for the new federal reporting requirements, you can take a breath and pause on your filing - at least for now. If you already filed, there’s nothing you need to do.

Why Did This Happen?

The court found that the CTA likely exceeds Congress's constitutional authority. While the government argued that the law was necessary to combat financial crimes, the court determined that Congress may have overstepped its bounds in creating these reporting requirements.

The ruling affects approximately 32.6 million companies that would have been required to report their ownership information to the Financial Crimes Enforcement Network (FinCEN). This includes most small businesses, LLCs, and corporations in the United States.

What This Means For Your Business

For now, the CTA's reporting requirements have been put on hold. However, this is a preliminary injunction, which means:

• The ruling could be appealed
• The requirements could be reinstated
• The law could be modified to address constitutional concerns

Stay tuned, and we’ll keep you posted as new information becomes available.

Looking Ahead

As your Personal Family Lawyer® Firm, we're monitoring this situation closely. While this ruling provides temporary relief from reporting requirements, it's important to stay prepared. We can help you understand how these changes might affect your business and ensure you're ready to comply if the requirements are reinstated.

Book a call with us here to schedule a Life & Legacy Planning Session and discuss how we can help protect your business interests:

Schedule a complimentary 20-minute call using the link below.

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This article is a service of Sarah Breiner (The Legal Mama) and Breiner Law Firm, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session®, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session®.