The U.S. Treasury Department introduced new reporting requirements for small businesses and other entities, leaving many business owners wondering how these changes will affect them. Under the new rules, most entities registered with a state—such as LLCs, corporations (including Subchapter S corporations), and even certain homeowners’ associations—must file detailed reports about their “beneficial owners.”
We originally planned this article as a reminder of a 12/31/24 deadline to file, with a link to our earlier article alerting you to the requirements (read the original article here). Instead, in a decision issued 12/3 and amended on 12/5, a federal judge issued a nationwide injunction against enforcing the reporting requirements of the Corporate Transparency Act. He found the act exceeded the powers granted to congress by the United States Constitution. While the government will almost certainly appeal this decision, there is no need to report personal information until and unless this decision is reversed or overruled. We will keep an eye out for any decision that reverses the injunction.