On December 3, 2024, we reported that the Corporate Transparency Act (CTA), requiring the filing of a beneficial ownership information report by January 1, 2025 by reporting companies in existence prior to January 1, 2024, had been preliminarily enjoined by the federal District Court for the Eastern District of Texas. Last week, the government filed two motions for a stay of the injunction – meaning to suspend it and thereby restore the January 1, 2025 filing deadline– pending the government's appeal to the Fifth Circuit Court of Appeals. The government has filed stay motions both in the trial court (the federal District Court for the Eastern District of Texas) and in the Fifth Circuit Court of Appeals. Briefing in the trial court was completed yesterday.
Today, December 17, the trial court in the CTA case in Texas denied the government's motion to stay the preliminary injunction against enforcement of the CTA. The issue of a stay pending appeal now rests with the Fifth Circuit Court of Appeals. Briefing on the motion for a stay in the Court of Appeals is scheduled to be complete on December 19.
Unless the Fifth Circuit Court of Appeals stays the December 3 preliminary injunction, the January 1, 2025 deadline for filing under the CTA remains suspended.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
