Update: CTA Preliminary Injunction Reinstated

As of December 26, 2024, the nationwide injunction against enforcement of the Corporate Transparency Act (CTA) granted on December 3, 2024 by the federal district court in Texas Top Cop Shop, Inc. has been reinstated. (On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit lifted the injunction, but on December 26, 2024, a different panel effectively reinstated the injunction.) Although the U.S. Department of Justice is expected to appeal, at the moment reporting companies are not required to comply with the CTA.

Companies should closely monitor this case and related challenges to the CTA. Given the uncertainty, companies should be prepared to comply with the CTA if the preliminary injunction is vacated or modified or a decision validating the CTA is reached. As such, companies should complete their analysis of whether they are reporting companies, or exempt, under the CTA and, if not exempt, identify their beneficial owners, and gather the required beneficial ownership information.

If you have any questions about your obligations with respect to the CTA, please contact one of your lawyers at Lewis Rice or any of the authors of this client alert.