On December 3, 2024, the Eastern District of Texas Federal Court issued a nationwide preliminary injunction against the Corporate Transparency Act (CTA) in the case of Texas Top Cop Shop v. Garland et al. This decision effectively suspends the enforcement of the CTA, which had mandated companies to report beneficial ownership information to FinCEN. Judge Mazzant delivered a scathing critique of the CTA, asserting that it likely exceeds Congressional authority and infringes upon state jurisdiction over corporate regulation. The court highlighted the substantial financial burden on businesses, with compliance costs estimated to surpass $22 billion in the initial year alone…. read more »
Corporate Transparency Act Reporting Requirements Deadline Approaching
This is an update to our January 16, 2024 article titled “The Corporate Transparency Act and Beneficial Ownership Information Reporting”. At the beginning of this year, the Corporate Transparency Act (“CTA”) became effective. The CTA is intended to aid law enforcement in combating illicit activity, such as money laundering and terrorist financing, conducted through anonymous shell companies. It does so by mandating certain entities, primarily small or medium size businesses, to report “beneficial owner” information to the Financial Crimes and Enforcement Network (“FinCEN”). The CTA authorizes FinCEN, a Bureau of the US Treasurer Department, to collect, protect and disclose this information… read more »
Important Changes to Pennsylvania Corporate Law: Annual Reporting Obligations
Business owners in Pennsylvania should take note of a significant new change to corporate law that will be effective starting in 2024. Act 122 has replaced Pennsylvania’s traditional decennial corporate filing requirements with new annual reporting obligations. Failing to comply with the new regulations may result in administrative repercussions for entities. Below are some frequently asked questions to help you navigate these changes: Pennsylvania’s Act 122 requires annual reports from all organizations including but not limited to: Corporations Limited liability Companies (LLC) Most Partnerships Non-profit corporations Registered foreign entities (out of state companies registered to do business in Pennsylvania). Starting… read more »
