This information has been superseded by a more recent court decision issued on December 26th. For the most recent information on the status of the Corporate Transparency Act, please click here.
Kayla M. Kuri
On December 23, 2024, the Fifth Circuit Court of Appeals granted the government’s emergency motion to stay a district court’s nationwide preliminary injunction against the Corporate Transparency Act (“CTA”) and its reporting requirements. This decision reinstates the CTA’s reporting obligations, which were previously enjoined by the U.S. District Court for the Eastern District of Texas in the Texas Top Cop Shop, Inc., et al. v. Garland on December 3, 2024. In response to this decision, the Financial Crimes Enforcement Network (“FinCEN”) issued a statement extending the prior year-end filing deadline to January 13, 2025.
What This Means for Your Business
Businesses in existence prior to January 1, 2024 who do not fall into one of the CTA’s reporting exemptions must make the necessary filings with FinCEN no later than January 13, 2025. Businesses that were formed on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 also have until January 13, 2025 to submit their beneficial ownership filings to FinCEN. All other newly-formed businesses will need to ensure that they either fall into a reporting exemption or make their required filings within the applicable time frame (90 days for businesses formed in 2024 and 30 days for businesses formed on January 1, 2025 and after). (Click here for more information about the CTA and its reporting requirements)
How We Can Help
Failure to file these reports can result in significant penalties, including substantial fines and potential legal action. Businesses that previously relied on the now-lifted injunction to delay compliance must act swiftly to meet the approaching deadline. If you have any questions about the CTA, its applicability to your business, or how to prepare your filings, please contact Kayla Kuri at kmkuri@phillipsmurrah.com or your regular Phillips Murrah representative.
About the author:
Kayla M. Kuri is a Director and a corporate attorney who represents clients in a wide range of commercial and business matters, including mergers and acquisitions, real estate transactions, private securities offerings, commercial financing transactions, and commercial contract drafting and negotiation.
CONTACT: kmkuri@phillipsmurrah.com | 405.552.2419
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