The Corporate Transparency Act (CTA), which went into effect on January 1, 2024, has been temporarily blocked nationwide by a Texas court ruling. This act requires certain business entities to disclose their beneficial ownership information to FinCEN (Financial Crimes Enforcement Network).
On December 3, 2024, a federal judge found the law likely unconstitutional, citing concerns over federal overreach into state-managed affairs. This ruling issued a preliminary injunction, meaning compliance with the CTA is currently suspended.
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How Does This Impact Florida Businesses?
This nationwide injunction applies to businesses in Florida. For now, there is no requirement to file beneficial ownership reports. However, the U.S. Treasury Department is appealing the decision, so the law’s future remains uncertain.
What Should You Do Now?
Although enforcement is paused, it’s wise to stay prepared:
• Identify your entity’s beneficial owners.
• Gather required documentation for future reporting if the law is reinstated.
• Monitor updates from FinCEN and legal authorities.
This case highlights the importance of staying informed about changes in compliance requirements. If you have questions or need assistance navigating these regulations, contact us today for guidance.
Stay ahead—protect your business from surprises.
Lori Vella is an Estate Planning and Business Attorney. She works virtually throughout Florida and New York, but has her home office in Tampa, Florida. She is mom to a little boy which ignited the passion for helping other families. She and her son enjoy car rides, playgrounds and taking mini-adventures. They also have an organic garden that surprisingly yields vegetables. Lori considers herself well-versed in Seinfeld and welcomes any trivia!
Disclaimer: The Law Office of Lori Vella’s website contains general information directed to Florida residents. This firm does not intend to give legal advice through its pages and/or blog. If you need legal advice, we encourage you to find an attorney licensed in your state. This language on this website does not create an attorney-client relationship between you and this firm.