Less than a month before the filing deadline, the nationwide enforcement of the Corporate Transparency Act (CTA) has been temporarily halted. On December 3, 2024, a Texas federal court issued a preliminary injunction blocking the enforcement of the CTA, including its requirement for reporting companies to file a Beneficial Ownership Information Report (BOIR).
The court found that the CTA likely exceeds Congress’s constitutional authority. However, this ruling is not final—it merely pauses enforcement. If the injunction is overturned, enforcement of the CTA could/will resume immediately.
What’s Next?
The duration of the preliminary injunction is uncertain. We strongly recommend that small businesses that have not yet filed their BOIRs continue to gather all necessary information and documents. If the injunction is lifted, businesses will need to act quickly to meet the CTA’s filing requirements.
Depending on how long the injunction remains in place, businesses could have very limited time to comply.
How We Can Help
Cooper & Riesterer will monitor this case closely and keep our clients and community updated on any developments. If you have questions about how this situation affects your business, please contact Abby H. Cooper at [email protected] or any of our attorneys at Cooper & Riesterer, PLC. We’re here to help you navigate this evolving legal landscape.
