On December 3, 2024, the U.S. District Court for the Eastern District of Texas (Sherman Division) issued a nationwide preliminary injunction blocking enforcement of the Corporate Transparency Act (CTA).
The CTA, enacted in 2021, was designed to combat illicit financial activity by requiring corporations, limited liability companies, and similar entities to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). The filing requirements, originally set to take effect on January 1, 2025, are now on hold due to the court’s order (Reuters).
The injunction comes in response to legal challenges raised by business groups, which argued that the CTA’s requirements posed undue burdens on small businesses. While this ruling provides temporary relief, it is important to note that it is a preliminary measure and subject to change as the case proceeds.
Entities previously preparing for the January 1, 2025, compliance deadline should stay informed about further developments and be prepared to adapt if the injunction is lifted or modified.
If you have questions about the CTA or its implications for your business, the team at Luchansky Law is available to provide guidance. Contact us for assistance navigating this evolving legal landscape.
About Luchansky Law
At Luchansky Law, we understand the complexities of wage and hour compliance in a rapidly evolving regulatory environment. For assistance with navigating these changes or addressing specific concerns, please contact us today.
Please call (410) 522-1020, or email us at info@luchanskylaw.com, or stop by our office at 606 Bosley Avenue, Suite 3B, Towson, Maryland, 21204.