On December 3, 2024, a Federal Court in Texas issued a nationwide preliminary injunction temporarily preventing the enforcement of the business beneficial ownership interest ("BOI") reporting requirement under the Corporate Transparency Act (the "Act").
The deadline for filing the BOI report for businesses formed prior to January 1, 2024 has been January 1, 2025 (businesses formed after January 1, 2024 were required to file their BOI report within 90 days of formation). Many businesses have delayed filing with hopes that there would be a challenge or other change to the Act that would alleviate the reporting requirement. This preliminary injunction does just that, but only temporarily pending additional adjudication of the claims that the Act is unconstitutional for various reasons.
Businesses that have not yet filed their BOI report should actively monitor this situation, but remain prepared to file your BOI report quickly in the event the injunction is overturned prior to year-end.
