As a follow up to our client alert, “Key Deadlines and Requirements for the Corporate Transparency Act and NY LLC Act,” on December 3, 2024, the United States District Court for the Eastern District of Texas ( “Court”) determined that the Corporate Transparency Act (“CTA”) is likely unconstitutional and granted an injunction preventing its enforcement. This injunction applies nationwide and is applicable to relevant New York entities. For a copy of the Opinion and Order, click here.
It is important to note that while this may appear to ease the current burden of needing to file, this is not a final ruling on the constitutionality of the CTA, and an appeal of this decision is likely to follow. There is the potential that this decision could be overturned or stayed at the Appellate or Supreme Court level, which would result in the reinstatement of the CTA and its filing requirements at any time, including shortly before the end of December. Should that happen, entities will be left with very little time within which to comply with the reinstated filing requirement prior to the reinstated January 1 deadline.
BBG will continue to monitor this case, as well as any other developments regarding the CTA and other filing requirements such as the New York LLC Transparency Act currently slated for effectiveness in 2026.
Contact Us
For assistance or questions about the CTA or NY LLC Act, please consult your attorney of record or reach out to our team here.
Written by: Joshua A. Sycoff, Associate, Transactional