EDIT on 12/24/24: The Corporate Transparency Act is back. Read more on our updated blog post here.
The Corporate Transparency Act (CTA), which requires many small businesses to report information about their “beneficial owners”—those who own or control the company—to the federal government, has been temporarily paused due to a federal court ruling in Texas. As a result, businesses are not required to comply with these rules unless an appellate court overturns or modifies the injunction.
This ruling impacts businesses, including many ABC members, preparing to meet the CTA’s strict reporting requirements.
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What should businesses do next?
With the CTA on hold, businesses should stay updated on developments. Here are key steps construction companies and small businesses can take to protect themselves:
1. Stay updated on developments
Watch for “Informing the Industry” updates on the status of the ruling and appeals, as the injunction could be overturned.
2. Prepare for potential compliance
If the CTA is reinstated, businesses must meet its requirements quickly. Reporting companies should start/continue reviewing stakeholder information now to ensure records are accurate and organized for potential future reporting.
3. Consult legal advice
If you’re unsure if you’d be a reporting company, it’s a good idea to consult legal counsel to understand your responsibilities. Here are ABC Western Michigan members providing CTA compliance assistance:
This federal website also has several quick references and step-by-step instructions.
Questions? Don’t hesitate to reach out, info@abcwmc.org.
Disclaimer: This document is intended for informational purposes only and should not be considered as legal advice. Construction companies and other businesses should consult with a qualified attorney to evaluate their specific circumstances and ensure compliance with the Corporate Transparency Act and other applicable laws.
