A federal court has issued a nationwide injunction on reporting requirements under the Corporate Transparency Act (“CTA”).
The CTA required all Reporting Companies (mostly LLCs and corporations) to report personal information of Beneficial Owners and persons with substantial control of a Reporting Company into a database known as FinCen.
If you formed your Reporting Company during 2024, you have 90 days to report your information to FinCen.
If you formed your Reporting Company before 2024, your deadline to report is January 1, 2025.
As of yesterday, the U.S. District Court for the Eastern District of Texas in the Texas Top Cop Shop v. Garland, issued a nationwide “stop” of the reporting requirements under the CTA.
If your business has already reported, then you do not need to do anything further at this time.
The CTA was originally passed into law under the first Trump Administration. Given the transitional nature of the Justice Department at this time, it is unclear whether the Justice Department will appeal this ruling to the Fifth Circuit. Stay tuned for additional developments in our next Business Alert.
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