CTA New Ruling: For Small Business Owners

Recent News

As the news is constantly developing, the CTA, short for the Corporate Transparency Act, is now being blocked from enforcing its rule. The enforcement of the Corporate Transparency Act, which mandates that millions of companies reveal their true ownership, is still delayed despite a U.S. Supreme Court ruling in favor of the Treasury Department. Recently, the Supreme Court overturned a lower court ruling that was preventing the enforcement of the CTA. However, a separate national injunction issued by a federal judge earlier this month appears to still be in effect, blocking the law’s implementation. Developing delays are occurring, and the rule has been on hold since December 3, 2025.  

Context

For context, small business owners have to register with the Financial Crimes Enforcement Network, or FinCEN for short. They last stated that they have until January 13, 2025, to register or pay up to $10,000 in fines.  The Corporate Transparency Act (CTA) has been a source of ongoing confusion and legal challenges, leaving many small business owners uncertain about their reporting obligations. After a series of court rulings, including a recent reversal by the 5th U.S. Circuit Court of Appeals, the CTA’s reporting requirements are back in effect. This blog post provides clarity on the current status of the CTA and outlines the steps small businesses need to take to comply.

Full or Partial Owners must register personal information, such as photo ID and home address. This was originally scheduled for January 1, 2025, but an extension was given due to the back-and-forth trial. Adversaries, such as the National Cattlemen’s Beef Association, argue that deadlines should be pushed out even further since most small businesses in America are not prepared and or well-informed. Whichever the case is, the following is an informative on how to apply and register with FinCEN.

How To

The Beneficial Ownership Information Report is where small businesses can register the following: 

• Your Company’s Full Legal Name
• Business Address
• The state where the company’s registration.
• Taxpayer ID#
• Beneficial owner’s full legal names and birth dates
• Beneficial owner’s home address
• Photocopy of beneficial owners U.S. DL# or Passport

Business That Are Exempt

FinCen is exempting a variety of types of businesses, which means they are not obligated to file at all. The following businesses are: 

1. Securities reporting issuer
2. Governmental authority
3. Bank
4. Credit union
5. Depository institution holding company
6. Money services business
7. Broker or dealer in securities
8. Securities exchange or clearing agency
9. Other Exchange Act registered entity
10. An investment company or investment adviser
11. Venture capital fund adviser
12. Insurance company
13. State-licensed insurance producer
14. Commodity Exchange Act registered entity
15. Accounting firm
16. Public utility
17. Financial market utility
18. Pooled investment vehicle
19. Tax-exempt entity
20. Entity assisting a tax-exempt entity
21. Large operating company
22. Subsidiary of certain exempt entities
23. Inactive entity

CTA?

Here at KAASS LAW, we strive to better understand what is happening nationwide. In a brief summary, the Corporate Transparency Act was enacted in 2021 and aimed at combating money laundering and illicit financial activities by requiring most companies to disclose their beneficial owners to the Financial Crimes Enforcement Network. The law aimed to increase transparency by targeting anonymous shell companies. As a result, these are ongoing legal challenges from business groups, including sole proprietors and small business owners. They argued that this violated privacy rights. The court agreed, ruling that the plaintiffs were likely to succeed in their arguments that certain provisions of the CTA might be unconstitutional. Some argue and speculate that this shows the government’s impairment on oppressing criminal syndicates, but therefore finding ways to take advantage upon hard working citizens. 

KAASS Law: Guiding You Through CTA Compliance

Navigating the complexities of the CTA can be challenging for small business owners. At KAASS Law, we are committed to providing our clients with the guidance and support they need to comply with these new reporting requirements. Our services include:

• Assessing your reporting obligations: We can help you determine whether your business is subject to the CTA and what information you need to report.
• Gathering and organizing required information: We can assist you in collecting the necessary information about your beneficial owners and ensuring it is accurate and complete.
• Preparing and filing reports with FinCEN: We can help you prepare and file your beneficial ownership reports in a timely and compliant manner.
• Addressing any legal challenges: If you face any legal issues related to the CTA, we can provide expert legal representation and protect your interests.

Don’t Let CTA Compliance Overwhelm You

The Corporate Transparency Act represents a shift in how the U.S. tracks business ownership. Forcing businesses to discover their beneficial owners, the government aims to increase transparency and fight financial crimes. As the deadline is approaching, it’s important that businesses take proactive steps to comply and make the necessary reports. KAASS LAW can help you navigate to the best of our ability. For any further questions or seeking legal counsel, please contact us as soon as possible!