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What Does the Latest Court Decision on the CTA Mean?

06 December 2024

BREAKING NEWS – Court decision on the Corporate Transparency Act (CTA) –

On Tuesday, December 3, 2024, a United States district court in the Eastern District of Texas preliminarily enjoined the enforcement of the Corporate Transparency Act (“CTA”) in its entirety nationwide, and also specifically stayed the reporting deadline of January 1, 2025 for reporting companies formed or registered to do business in the U.S. before January 1, 2024. (See Texas Top Cop Shop, Inc., et al. v. Garland, et al., Case No. 4:24-cv-478.)

THE SITUATION, however, IS IN FLUX, as we anticipate the government to request an immediate stay on the injunction or a narrowing of its application to only the parties in the case, as well as an appeal of the injunction.

Recommended Action for Clients

In light of the uncertainty surrounding this situation, we believe that it would be expedient for clients who have not already provided the information required to file a Beneficial Ownership Interest Report (“BOIR”) to do so for their entities, so that, in the event the injunction is stayed, we can quickly and efficiently file BOIRs and ensure client compliance with the CTA, thereby avoiding costly fines.

QUESTIONS?  Call us at 469-916-7700 or email us via out contact page.

Tags: Corporate Law, Corporate Transparency Act, FinCEN
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About Scott Meyer
Scott Meyer focuses his practice on Corporate and Intellectual Property matters. His Corporate practice includes a broad spectrum of services including entity formation, business transactions, operational agreements and contracts, sales, acquisitions and mergers of businesses, corporate governance and employment matters. His Intellectual Property practice includes trademark, licensing and various service agreements for corporations.
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