On December 3, 2024, the U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction preventing enforcement of the Corporate Transparency Act (“C.T.A.”). The court found that the plaintiffs were likely to succeed in their claim that the C.T.A. is unconstitutional.

This means that the C.T.A. filing obligation has, at least temporarily, been suspended, and that the January 1 deadline is currently inapplicable. However, the filing obligation could come back into effect if the injunction is overturned or if the government ultimately prevails in the case.

There are currently three options going forward. The first is to continue filing reports, under the assumption that the government will eventually succeed. The second option is to pause all activity. The third option is to gather necessary information and documents, but keep it private and delay filing until the court takes further action. The decision is yours.

The Ruchelman P.L.L.C. C.T.A. compliance team will continue monitoring developments.

This note is presented for informational purposes only and should not be construed as legal advice.