BOI Reporting Halted by Injunction on Corporate Transparency Act (CTA)

Last updated 12.5.2025 at 4:35 PM EST

Big news for small business owners: A federal district court has issued an order halting the enforcement of the Corporate Transparency Act (CTA) and its accompanying regulations, including the Beneficial Ownership Information (BOI) reporting rule. This development introduces significant changes to a process that was set to impact millions of businesses. Here's what you need to know about how this affects you and your business.

What Is the BOI Filing Requirement?

The BOI reporting rule is part of the CTA, which requires many small businesses to disclose their "beneficial owners" (individuals who have significant control or ownership of the business). While this was not required for Insurance Agency owners, it was required for most other businesses. The goal of the rule is to prevent illicit financial activity by creating a database of business ownership information for government use.

However, the recent injunction has put a pause on this requirement.

Why the Injunction?

The court found that the CTA is likely unconstitutional, prompting this order to halt its enforcement. While the government may appeal this decision, for now, the requirement to file a BOI report is on hold.

What Should You Do Now?

1. If You Have Already Filed
   Don’t panic. There’s no need to take additional action at this time. Your filing remains in place, and further guidance will likely be issued if changes are required.
2. If You Haven’t Filed Yet
   You can hold off for now. With the injunction in place, there is no immediate requirement to submit your BOI report.
3. Exempt Businesses
   Certain businesses, such as insurance agencies, were already exempt from the BOI filing requirement. However, LLCs and other small businesses, including those used for rental properties or side businesses, were required to file under the original rules. For now, these businesses can pause their filing plans.

What’s Next?

This situation is still in flux. The government may appeal the injunction, so requirements could change again in the future. It’s crucial to stay informed about developments in this case to ensure compliance if the CTA reporting requirements are reinstated.

How We Can Help

At Club Capital, we’re keeping a close eye on this case to ensure our clients remain compliant with all applicable regulations. If you have questions about how this injunction affects your business, don’t hesitate to reach out.

We’ll provide updates as more information becomes available, so you can focus on running your business with peace of mind.

Book a call to discuss your agency, sports organization, or franchise financials with an expert:

https://club.capital/schedule-a-demo/ 

Source: “Nationwide injunction halts BOI reporting for now,” Journal of Accountancy, December 5, 2024. Read the full article.