A recent ruling by the U.S. District Court for the Eastern District of Texas has halted the enforcement of the Corporate Transparency Act (CTA), granting a preliminary injunction affecting businesses nationwide. This legal decision, stemming from a lawsuit by Texas Top Cop Shop, Inc. and others, challenges the constitutionality of the CTA’s requirements regarding beneficial ownership disclosure. While the injunction is in place, companies are currently not obligated to comply with the reporting requirements, but the case is likely to proceed through appeals, keeping the future of the CTA in question.
