Federal Court in Texas Puts the BOI Reporting Obligations on Ice Nationwide
The United States District Court for the Eastern District of Texas on December 3, 2024, issued a nationwide preliminary injunction blocking the mammoth new Beneficial Owner Interest (BOI) reporting requirements under the Corporate Transparency Act. The Court finds that the law is likely unconstitutional. You can download the Court's order here:
The injunction is only temporary, which means the Corporate Transparency Act is on ice but not yet extinct. The District Court’s decision could be appealed to the United States Court of Appeals for the Fifth Circuit and ultimately to the United States Supreme Court. Alternatively, the law could be amended, narrowed, repealed, or defunded.
The Corporate Transparency Act affects most small businesses in Colorado. For background, helpful reference materials, and future alerts concerning the law, check out the official United States Government website at https://fincen.gov/boi.