Nationwide Injunction of CTA Lifted: Businesses Must Once Again Report Beneficial Owners

Well, the pendulum has swung back and businesses will again be required to comply with the Corporate Transparency Act (“CTA”) and its beneficial ownership interest reporting rule. Yesterday, a federal court lifted the nationwide stay against enforcing the CTA issued last month in Smith, et al. v. United States Department of The Treasury, et al., No. 6:2024cv00336 (E.D. Tex. 2025). Many expect FinCEN will delay enforcement for 30 days, giving business owners time to comply with reporting requirements, but FinCEN has not yet confirmed this timeframe.

Business owners should therefore take steps to promptly comply with the reporting requirements. Owners can file these reports online themselves by visiting FinCEN’s website. Alternatively, owners should reach out to their attorney or other business advisor, who may be able to assist with the filing. And owners would do well to do so quickly, as the clock is ticking.

It bears noting that the House of Representatives recently passed a bill to extend the deadline for certain companies required to file beneficial ownership information to January 1, 2026. That bill is now before the Senate. But while that bill sits on Capitol Hill, it’s not yet law (cue the Schoolhouse Rock tune). So, owners will have to comply with the duly passed CTA while they await a reprieve.

If you have questions on the CTA, the reporting requirements, and related matters, please contact us to get more information.