CTA UPDATES
3-29-2024: CTA Found Unconstitutional for Select Business Owners
While there have been many headlines talking about how the Corporate Transparency Act (CTA) was found to be unconstitutional, it’s important to understand the context surrounding this decision and its impact on Florida business owners.
In NSBA vs. Yellen, the CTA was challenged by the National Small Business Association (NSBA), an advocacy group based out of Ohio, and Alabama real estate agent Isaac Winkles. The court sided with the Winkles and the NSBA, determining that the law is unconstitutional due to congressional overreach. This resulted in a pause on filing requirements for the Plaintiffs in this case only.
FinCEN will otherwise continue their enforcement efforts against individuals and entities that fail to comply with the CTA. In other words, Florida business owners won’t be able to take advantage of this ruling unless they were already members of the NSBA before the court issued its decision on March 1, 2024. The United States Department of Justice (DoJ) has already filed their appeal disputing the judge’s decision.
Key Takeaways:
- There will likely be some back-and-forth between the judiciary and the legislature as the law is finalized, so stay tuned for further updates.
- Companies formed in 2024 have 90 days after formation to file their initial BOI reports. Please note that this time will be reduced to 30 days starting in 2025.