Beneficial Ownership Reporting Requirements Delayed for Some Entities

Legal
Published

The Jan. 1, 2025 reporting deadline for certain corporations, limited liability companies and similar entities to file beneficial ownership information under the Corporate Transparency Act (CTA) has been delayed.

A nationwide preliminary injunction entered by the U.S. District Court for the Eastern District of Texas has declared the CTA and its implementing regulations may not be enforced by the U.S. Treasury’s Financial Crimes Enforcement Act (FinCEN).

The court ruled that reporting companies formed or registered before Jan. 1, 2024 do not need to comply with CTA’s Jan. 1, 2025 beneficial ownership information reporting deadline pending further order of the court.

A preliminary injunction is not a final decision. It provides temporary relief from compliance of the regulation until the court can decide on the merits of the case.

As a result, companies facing the Jan. 1, 2025 deadline to register entities created before Jan. 1, 2024 do not need to file with FinCEN at this point.

Although NAHB does not provide legal advice, we believe entities incorporated between Jan. 1, 2024, and Dec. 31, 2024, with CTA reporting obligations should continue to meet their beneficial ownership information filing obligations with FinCEN within 90 calendar days of the date the entity was formed.

Reporting companies that feel they have no obligation to report should closely monitor case developments in the Texas case in addition to parallel cases pending in the 9th, 4th, and 11th circuits.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Apr 23, 2025

Decline in Mortgage Rates Helps to Increase New Home Sales in March

Sales of newly built, single-family homes in March increased 7.4% to a 724,000 seasonally adjusted annual rate from a revised January number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in March was up 6.0% compared to a year earlier.

Member Benefits

Apr 22, 2025

Ford Pro Joins NAHB's Member Savings Program

Through this exclusive program, NAHB members can save up to $5,000 on a wide range of Ford Pro cars, trucks, vans and SUVs. Plus, the member discounts can be combined with local dealership offers.

View all

Latest Economic News

Economics

Apr 23, 2025

New Home Sales Rise in March

A modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions.

Economics

Apr 22, 2025

The Power of Women in the Workforce

Over the past 125 years, women have played a crucial and multifaceted role in the labor force. Increasing women’s participation in the workforce is not only essential for individual and family well-being, but also contributes significantly to overall labor force participation rates and economic growth by adding more workers and enhancing overall productivity.

Economics

Apr 21, 2025

Who Influences the Purchasing of Building Products?

In a previous post, NAHB analyzed where builders and remodelers purchased products, regardless of who ultimately purchases them (themselves or subcontractors). In this post, the question shifts to who is most often responsible for the choice of particular products.