Oh BOI, oh BOI...

An early Holiday present for businesses - court bars FTC from planned January 1st enforcement date for beneficial ownership reporting requirements

As you may recall from our prior newsletters, blog and social media posts, the Corporate Transparency Act (CTA) required most LLCs to file a Beneficial Ownership Information (“BOI”) Report with FinCEN by December 31, 2024 or face pretty hefty penalties.

As we were preparing a final reminder on this, on December 3, 2024, a federal district court judge in Texas issued a nationwide injunction in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. concluding that the CTA is unconstitutional.

This means that – at least for now - companies may still file BOIs but are not required to do so, and no penalties will be issued for missing the December 31 deadline. The Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024, so we will have to watch and see what happens with that.