Update: Woodlands Chamber reports that Corporate Transparency Act requirements halted by federal court

THE WOODLANDS, TX – The Woodlands Area Chamber of Commerce has released a statement containing an update to the Corporate Transparency Act Small Business Advisory statement it issued (and Woodlands Online reported on) last week. This information is courtesy of their partners at the U.S. Chamber of Commerce.

A federal court in Texas halted the implementation of the Corporate Transparency Act’s (CTA) beneficial ownership reporting requirements. Holding that the CTA is likely unconstitutional, the court issued a preliminary injunction barring the government from enforcing the CTA and its reporting requirements against anyone.

Prior to the ruling, small businesses that met certain criteria would have had to file reports with the Department of the Treasury by January 1, 2025, or risk fines and criminal penalties.

The preliminary relief will remain in effect until the conclusion of legal proceedings, at which point the court may enter a permanent injunction. In the meantime, the government will likely appeal the preliminary injunction.

Unless and until an appellate court overrules or narrows the injunction, no businesses are obligated to comply with the reporting requirements.

The Chamber will continue to keep you updated as new developments arise.