Corporate Transparency Act Beneficial Ownership Reporting Suspended, Held Likely Unconstitutional

A federal district court in Texas has held the Corporate Transparency Act’s beneficial ownership reporting law likely violates the U.S Constitution, justifying a stay and injunction preventing enforcement of the law pending the resolution of the case.

As a result, business owners are not required to file “Beneficial Ownership Information Reports” with FinCEN unless the order is reversed on appeal or the case is resolved.  If the order is reversed, we expect some grace period will exist to comply thereafter.

Even if the ruling is eventually overruled, some areas in Florida affected by this year’s hurricanes may have until July 1, 2025 to comply with the law, under orders previously released by FinCEN.

Here is the full text of the Texas court’s ruling.