On December 3, 2024, a federal court in Texas granted a preliminary injunction temporarily suspending enforcement of the Corporate Transparency Act (“CTA”) nationwide. The CTA went into effect on January 1, 2024, and requires certain entities to report information about their owners and organizers to the Financial Crimes Enforcement Network (“FinCEN”).

The Court’s order states that reporting companies need not comply with CTA’s reporting requirements, including the upcoming January 1, 2025 deadline for filing beneficial ownership information related to entities formed before January 1, 2024. The Court’s order is not a final decision and enforcement of the CTA could resume if the injunction is lifted.

Our Business & Corporate Law team will continue to monitor further developments. Please reach out to your attorney at Best & Flanagan with any questions about the CTA, or if there is any other assistance we can provide.