Court Pauses Enforcement of Corporate Transparency Act
The appeals court ruling, which could affect some real estate brokerages, means that no filings are required at this time, but that could change if legal challenges continue.
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DECEMBER 27, 2024 — The U.S. Court of Appeals for the Fifth Circuit today issued a ruling on the enforcement of the Corporate Transparency Act (CTA) and the related Beneficial Ownership Rule BOR). In this most recent ruling, the court decided to reinstate the injunction prohibiting the enforcement of the CTA and its reporting rule.
This means that as of the time of this information being published, no filings under the CTA are currently required, including beneficial ownership reporting for companies formed or registered prior to 2024 that were due by January 13, 2025.
This information is subject to change. It is unclear whether parties to the litigation from this ruling, or other pending lawsuits for the CTA will pursue appeals or other remedies available to them through the courts.
The CTA would require brokerages, team owners and agents with a PA, LLC or PLLC to disclose ownership details to the federal government. Click here to learn more about the requirements and discover if you could potentially be affected.
Florida Realtors is closely monitoring this situation and will continue to bring you real-time information. Though it can be difficult to follow, and even confusing to keep up with this ever-changing litigation landscape, we will keep you informed so that you can decide the best course forward for your business.