Corporate Transparency Act- Updated as of 12/7/2024

The Corporate Transparency Act (“CTA”), which was effective January 1, 2024, impacts almost all closely held corporations, limited liability companies (LLCs) including single-member LLC, limited partnerships, and other closely held entities, as well as the legal and beneficial owners of such entities such as trusts and estates.  This is the case even if such entities only hold real estate and conduct no active business.

On December 3, 2024, the U.S. District Court for the Eastern District of Texas provided the entire country with nationwide temporary injunctive relief from having to comply with the January 1, 2025 deadline to file certain Beneficial Ownership Information (BOI) Reports required by the Corporate Transparency Act (CTA).

On December 6, FinCEN, the branch of the U.S. Treasury Department and the agency responsible for enforcement of the CTA posted its response to this preliminary injunction.  Please read this handout for more information. MGD Law is monitoring developments and will provide further guidance to MGD clients.