A federal judge has blocked the implementation of the new beneficial ownership requirements under the Corporate Transparency Act (CTA). The judged held that the new law is likely unconstitutional and issued a preliminary injunction that prohibits the federal government from enforcing the new reporting requirements under the CTA.

This is an important and timely ruling as business owners had been required to submit a report to the Department of the Treasury by January 1, 2025 or face significant financial or criminal penalties.

What does this mean to you as a business owner? No action is needed at this time. Greater Mankato Growth will closely monitor the legal proceedings through the appeal process.

Previous blog related to the CTA: Complying with the Corporate Transparency Act