A federal judge in Texas has put at least a temporary hold on the Corporate Transparency Act, granting a preliminary injunction suspending enforcement of the CTA.
Companies that were formed before 2024 had faced a January 1 deadline to file a report to the federal government on their beneficial ownership information. The judge’s injunction applies nationwide, so while it is in force, companies do not have to meet this deadline.
However, some legal advisers are still advising businesses to take a cautious approach: The injunction could be reversed on appeal, and at that point the original deadline could be enforced.
For more on these recent developments:
- Injunction Suspends Enforcement of Corporate Transparency Act, Texas Court Rules
- Client Alert: Major Update to the Corporate Transparency Act
For a previous article on what the Corporate Transparency Act requires and why it was passed, see Demystifying the Corporate Transparency Act.
