Alert: Update on BOI Reporting Requirements

On December 3, 2024, The U.S. District Court for the Eastern District of Texas granted a nationwide preliminary injunction that enjoins the federal government from enforcing the Corporate Transparency Act and its beneficial ownership information reporting requirement. In its ruling, the court determined the CTA and the reporting rule “are likely unconstitutional for purposes of a preliminary injunction. It has not made an affirmative finding that the CTA and the reporting rule are contrary to law or that they amount to a violation of the Constitution.

The court went further and ruled this is a nationwide injunction, applying against enforcement of the CTA and its impending Jan. 1, 2025, filing deadline.

While the injunction provides temporary relief, business owners should stay prepared for potential future reporting requirements, and we will keep you updated as new information is available.