Updated 12/5/2024
CTA BOI Reporting Requirements Update
On December 3, 2024, the US District Court for the Eastern District of Texas issued an order stating that the Corporate Transparency Act (CTA) is unconstitutional. If there is an appeal, the order could be upheld, overruled or sent back to the Texas court for further review or findings. The appeal would be to the Court of Appeals for the Fifth Circuit (Maine is not part of that Circuit, we are in the 1st Circuit) This order has the effect of a national injunction, but it is only a preliminary injunction, meaning that there will be a further hearing if the order is not appealed.
National Law Review articles are opining that the injunction means that reporting companies need not comply with the January 1, 2025 deadline but, while we agree with that analysis, we do not have certainty on that opinion, therefore our clients will need to make their own decision whether to file their company information by January 1, 2025 or wait until a final decision has been entered. It is important to note that other courts have found the CTA to be unconstitutional, but the scope of those decisions have been very limited and not applicable to Maine companies.