Update on BOI Reporting: What the Recent Texas Decision Means for Your Business
A recent legal development has paused the enforcement of Beneficial Ownership Information (BOI) reporting requirements nationwide.
On December 3, 2024, a Texas federal court issued a preliminary injunction against the Corporate Transparency Act (CTA), citing concerns about its constitutionality and potential harm to businesses.
What Happened?
In the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., the court ruled that the CTA likely exceeds Congress's powers and infringes on constitutional rights. As a result, enforcement of BOI reporting has been temporarily halted nationwide.
What Does This Mean for Businesses?
No Immediate Filing Requirement: Businesses are no longer obligated to submit BOI reports at this time.
Law Still Intact: The CTA itself has not been repealed, meaning businesses should remain prepared in case the injunction is overturned or Congress amends the law.
Uncertain Future: This decision may be appealed, or other courts could issue differing rulings, creating potential compliance challenges in the future.
Should You Still File?
While the current pause removes the immediate obligation, some businesses may prefer to file proactively to avoid future confusion or penalties if the law is reinstated.
How We Can Assist You
Our firm continues to monitor these developments closely. We can:
Advise on whether filing is advisable based on your business’s unique circumstances.
Handle the filing process for you if the requirements are reinstated.
For the latest updates and personalized guidance, contact us. We’re here to help your business stay informed and prepared in this evolving regulatory environment.