Chicago Business Attorney Blog
Corporate Transparency Act Updates
WHO’S ON FIRST?
ANOTHER UPDATE ON THE CORPORATE TRANSPARENCY ACT
New Reporting Deadlines and Ongoing Legal Drama
On December 23, 2024, a federal appeals court granted a stay over the nationwide injunction issued by a federal court which flipped the requirements for filing around (again!). The court reinstated the beneficial ownership filing requirements under the Corporate Transparency Act (“CTA”). But later that evening the same appeals court reversed itself and the BAN IS BACK IN EFFECT!
As of the publishing of this blog post, “reporting companies” under the CTA – which includes all small businesses – do not need to file a BOI report.
The Corporate Transparency Act (CTA) has been at the center of significant legal and regulatory developments, impacting reporting companies across the United States. Here’s a concise update on recent events and their implications:
Injuction reinstated agaisnt the CTA:
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- On Dec. 23, 2024, at approximately 1:30 p.m. ET, the U.S. Court of Appeals for the Fifth Circuit lifted a preliminary injunction that had paused enforcement of the CTA. This decision reinstated the CTA’s reporting requirements and deadlines, including the Jan. 1, 2025, deadline for reporting companies formed before 2024.
- But later that same evening the appeals court reversed itself and reinstated the injunction. As a result of this flip-flopping by the courts and as of the time of this blog post businesses are not required to file a report.
Next Steps for Businesses
While the immediate deadlines have shifted, businesses should not delay compliance efforts. The reinstated CTA requires reporting of beneficial ownership information, and penalties for noncompliance can be severe.
Conclusion
The reinstatement of the CTA underscores the importance of staying informed and proactive. As further developments unfold in the courts, Congress, and the executive branch, businesses should consult with legal counsel to ensure compliance with evolving requirements.
For tailored advice on how these changes affect your business, feel free to reach out to our office or by emailing to: george@bellas-wachowski.com