Nationwide Injunction Against the Corporate Transparency Act: What does it mean for Business Owners?

On December 3, 2024, a federal court in Texas issued a nationwide preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA). This law, passed in 2020, requires most small businesses to report their beneficial owners to the Financial Crimes Enforcement Network, or FinCEN. The court found the CTA is likely unconstitutional and paused enforcement, including the January 1, 2025, reporting deadline.
Hawaii attorney Ryan K. Hew breaks down what this means for business owners and their compliance with the CTA and the bigger context of the law.