BENEFICIAL OWNERSHIP REGISTRATION UNDER CTA ON HOLD, AGAIN – NO REGISTRATION REQUIREMENT AS OF DEC 26, 2024
Business registration under the Corporate Transparency Act (CTA) continues to be a moving target with the current status quo being that registration is not required.
In a ruling dated December 26, 2024, a panel of the Fifth Circuit Court of Appeals reinstated the injunction of December 3, which lifted the registration requirement under the CTA. Just three days earlier, another panel of the Fifth Circuit had reinstated the registration requirement, which is no longer in effect.
Below is a timeline of important dates of updates and current status of the Act.
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January 1, 2024
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The Corporate Transparency Act became effective, requiring most small businesses to register and identify the business’ beneficial owners.
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December 3, 2024
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Federal District Court in Texas issues a nationwide injunction which halted the registration requirement under the CTA.
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December 23, 2024
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United States Fifth Circuit Court of Appeals reinstates the registration requirement by lifting the nationwide injunction. FinCEN Extends Registration Deadlines to January 13, 2025.
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LATEST UPDATE: December 26, 2024
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Another Panel of the Fifth Circuit Court of Appeals reinstates the prior injunction meaning that there is no current requirement to register under the CTA. Any registration at this time is voluntary.
Please see the FinCen Website at: https://www.fincen.gov/boi for details and further updates.
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WHAT DOES THIS MEAN FOR YOU?
Once again, there is no requirement to register your business under the CTA.
While it has been difficult to predict what will happen in this case, the Fifth Circuit Court of Appeals has entered an expedited briefing schedule with oral argument on the appeal scheduled for March 25, 2025 and a decision of the Court following shortly thereafter. It is possible that the registration requirement will remain on hold until the late March – early April time period when the Fifth Circuit decides the appeal, but stay tuned for further updates and changes.
As always, we are here to help. The experienced attorneys at Salzmann Hughes can provide guidance in your specific circumstances and business needs.
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