No Need to File... Yet: What the Corporate Transparency Act Pause Means for Your Business

If you’ve been dreading the new Corporate Transparency Act (CTA) filing requirement, or dodging my email reminders, there’s some good news—for now. A recent court decision has temporarily paused the need to file under the CTA. But before you celebrate and move on, let’s talk about what this means for your business, why this pause is temporary, and how you can use this time wisely.

Oh, and if you’re short on time, I’ve got a quick video breaking this all down—watch it here!

The Corporate Transparency Act in a Nutshell

The CTA was created to shine a light on business ownership by requiring companies to disclose their beneficial owners—those who own or control the business. The idea is to fight financial crimes like money laundering and fraud by bringing more transparency to business operations.

But the rules are broad, and while larger, publicly traded companies are generally exempt, many small businesses and LLCs would need to comply. This has raised concerns about privacy, compliance costs, and whether small businesses are being unfairly burdened.

Why Did the Filing Requirement Get Paused?

A court recently enjoined the CTA filing requirement, temporarily blocking it from going into effect. The decision comes after lawsuits challenged how the law was being implemented, raising concerns about its fairness and practical impact on businesses.

For now, this means you don’t have to worry about submitting your filing in 2024. But—and this is important—this is a pause, not a cancellation. The CTA is still very much in play, and this filing requirement could come back sooner than you think.

What Should You Do Right Now?

This pause is a golden opportunity to get ahead while others might be waiting. Here’s what you can do:

1. Get Your Business Documents in Order: Make sure you know who owns and controls your company, and document it clearly.

2. Stay in the Loop: Keep an eye on updates from FinCEN and watch for announcements about new deadlines.

3. Plan Proactively: Don’t wait until the last minute. Work with a legal professional to prepare for compliance once the filing requirements return.

The Big Picture

While this pause offers a temporary reprieve, it’s also a chance to assess your business’s readiness for future legal changes. The CTA is a reminder that as business owners, we need to stay informed and adaptable to new compliance requirements.

Get the Full Scoop in 60 Seconds

If you’re looking for a quick breakdown of this update and what it means, check out my 75-second video here.

This temporary pause shouldn’t lull you into inaction. Use this time to get your house in order so you’re prepared for whatever comes next. If you need help understanding how this impacts your business, let’s talk. My goal is to make navigating these legal requirements as smooth as possible for you.