On December 2, The New York Law Journal published a new article from managing partner Ben Thompson, “The Corporate Transparency Act: One Year Later with Deadline Looming.”
The Corporate Transparency Act (CTA), the federal law that took effect on Jan. 1, 2024, aimed at increasing transparency in corporate ownership, is approaching its one-year anniversary, at which point all qualifying companies were initially required to be in compliance. In his article, Thompson offers an overview of the CTA, including exceptions and penalties, and the legal challenges it has faced in the year since it was enacted.
The full version is available here.
*On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued an injunction prohibiting the federal government from enforcing the CTA. On December 23, a motion panel of three judges from the U.S. Court of Appeals for the Fifth Circuit issued a stay on the injunction, which was later vacated by the Fifth Circuit on December 26. We will continue to monitor this developing situation.