A federal court has paused enforcement of the Corporate Transparency Act and suspended the deadlines for filing beneficial ownership information reports.

In October, SSEG reminded you about compliance with the Corporate Transparency Act. The CTA, which took effect on January 1, 2024, requires small businesses to file a report identifying their owners with FinCEN. Many small businesses were planning to file their initial report on or before December 31, 2024.

But on December 3, 2024, a federal court paused enforcement of the CTA’s reporting requirement and suspended the deadlines for filing a beneficial ownership information report. Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction against enforcement of the CTA in Texas Top Cop Shop v. Garland et al.

The court’s ruling is a temporary halt that may become permanent. After further proceedings, this ruling may change. Your business may need to file your beneficial ownership information report at a later date. But, for now, enforcement of the CTA and related compliance is suspended.

For more information about the status of the Corporate Transparency Act, contact any member of the SSEG Business Law, Transactional Law, Securities Law, and Corporate Law practice group.