On December 2, 2024, just in time for the holidays, a U.S. District Court in the case of Texas Top Cop Shop, Inc., et al. v. Garland granted a nationwide injunction temporarily blocking the enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) filing requirement. The court’s ruling stated that the CTA and its reporting requirements are “likely unconstitutional.” The court will eventually make a final decision on whether the CTA can be enforced or shut down entirely.
Prior to this ruling, the CTA required millions of U.S. businesses to file a BOI by December 31, 2024. The BOI report included personal information about individuals who own or control at least 25% of the company.
This recent court ruling is only a temporary injunction, and the government filed an appeal of the court’s decision. If the government wins its appeal, companies may again be required to file a BOI. In the meantime, companies are not required to file their initial BOI while the appeal is pending.
Chauvel & Glatt will monitor this matter and provided updates as needed. For information specific to your business, please contact the Business Attorneys.
The material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-881-2476.
