Providing education, promoting professionalism, instilling a positive image, and advocating for legislative change on behalf of our members.

Federal Court Again Blocks the Corporate Transparency Act
The latest in a series of quickly moving updates on federal Beneficial Ownership Information (BOI) reporting requirements is good news for small businesses and the fight to stop onerous federal regulations.
Yesterday, a federal appeals court decision reversed course from earlier this week, putting the Corporate Transparency Act (CTA) and its BOI reporting requirements on indefinite hold while the courts consider?NFIB’s lawsuit challenging the Corporate Transparency Act,?Texas Top Cop Shop, Inc., et al. v. Garland, et al. ?
As of this update – until or unless the courts decide differently – businesses are not required to comply with the CTA’s BOI reporting requirements.
Small business owners are encouraged to take action by sending a message to their lawmakers in the U.S. House and Senate, urging them to quickly and fully repeal the CTA. If you haven’t yet made your voice heard with your federal elected officials, click HERE to send them an email now.

 Background
Under the Corporate Transparency Act (CTA), which went into effect on January 1, 2024, over 32 million U.S. small businesses are required to file BOI reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The beneficial ownership reporting rule would require businesses with 20 or fewer full-time employees to register all beneficial owners. The new beneficial ownership information reporting law would have required business owners to register personal information in a federal database through the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) . Failure to register would have resulted in criminal penalties of up to 2 years in prison and civil penalties of $591 per day, up to $10,000.

So what's the latest in the courts? 
On January 23, 2025, the U.S. Supreme Court reinstated the law. While the Supreme Court has reinstated the CTA, NFIB’s lawsuit is still ongoing. The lower federal courts must still decide the merits of the CTA’s constitutionality. 

Is BOI reporting dead or alive?
Due to ongoing litigation, businesses are not currently required to comply with the law’s reporting requirements. Businesses can review the status on FinCEN’s website. Keep up to date at NFIB.com/ProtectPrivacy. .

What should businesses do next?
As before, it’s a good idea to prepare beneficial ownership information just in case. You can review NFIB’s BOI resources, email your members of Congress, and view NFIB’s webinar and podcasts on this issue, at NFIB.com/ProtectPrivacy. Email the NFIB Small Business Legal Center at info@nfib.org with additional questions.
If you have already filed with FinCEN there is nothing you need to do.