Limited Liability Companies

There has been a flurry of recent litigation attacking the constitutionality of the CTA. Although on December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit upheld the law, three days later–on December 26, 2024–a separate panel of the same court struck it down. As a result, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force.

FinCEN’s position is that reporting companies may continue to voluntarily submit beneficial ownership information reports while the ping pong continues through the courts. Reporting companies should monitor any further developments at https://www.fincen.gov/boi and let your Reston Law Group advisor know if you have any questions.

In July 2022, our firm prepared a Client Alert describing the newly enacted Corporate Transparency Act (“CTA”). The CTA requires certain companies to report “beneficial ownership” and “company applicant” information with the Financial Crimes Enforcement Network (“FinCEN”). Since July 2022, the CTA regulations were finalized, and the requirements begin on January 1, 2024.