Highest Court Rules on the CTA

It feels like we’re all caught in a never-ending game of legal ping pong with the Corporate Transparency Act (CTA). Just when you think you know where things stand, the ball is back in the air, and the rules seem to shift overnight. In our last update, we shared how a nationwide injunction temporarily halted the enforcement of the CTA, offering businesses a momentary reprieve.

But the legal arena hasn’t been quiet since then — not by a long shot. The U.S. Supreme Court has now weighed in, adding another layer to the unfolding legal drama surrounding the CTA. Let’s dive into what this means for you and your business right now.

The U.S. Supreme Court Ruling

On January 23, 2025, the U.S. Supreme Court stepped in, granting the government’s request to lift the nationwide injunction that had been blocking enforcement of the Corporate Transparency Act (CTA). This move reversed the ruling made by the Fifth Circuit Court of Appeals on December 26, 2024, which had temporarily halted the law from going into effect.

But let’s be clear—this is not the final word. The Supreme Court’s stay has temporarily reinstated the CTA’s reporting requirements, but the decision is only in place for now. It will hold until one of two things happens:

• The Fifth Circuit Court of Appeals issues its decision on the government’s appeal.
• The Supreme Court itself decides whether to hear the case for a full review (granting a writ of certiorari).

If the Supreme Court decides not to take up the case, the stay will automatically expire, leaving the injunction in place again. However, if they do agree to hear the case, the stay will last until the Court delivers its final ruling.

What This Means for Your Business

If you’re asking yourself, “Does this Supreme Court decision mean I need to start filing Beneficial Ownership Information (BOI) reports now?” the short answer is no—not yet. While the Supreme Court’s ruling on January 23, 2025, lifted the block on the Corporate Transparency Act (CTA) in one case (Texas Top Cop Shop), another case is still keeping the CTA’s requirements on hold.

This second case, Smith v. U.S. Department of the Treasury, has a separate nationwide injunction in place. On January 7, 2025, the court in the Smith case issued an order stopping the enforcement of the CTA nationwide. That ruling hasn’t been overturned, so for now, businesses are not required to submit BOI reports to FinCEN. In short, the Smith case is currently doing the heavy lifting to keep the CTA’s reporting requirements paused.

So what does this mean for your business? At this moment, you’re not obligated to file. However, the legal battles are ongoing, and things could shift again. Future rulings—whether from the Fifth Circuit or the Supreme Court—could quickly reinstate the CTA’s requirements, leaving little time to react. Staying informed and being prepared is essential in this uncertain environment.

Stay Informed with Wilkinson Law LLC

The Corporate Transparency Act’s twists and turns are enough to leave any business owner scratching their head. We’re not just watching from the sidelines — we’re actively following every court ruling, update, and implication. We’re here to cut through the confusion, delivering clear and actionable insights that keep you one step ahead of the changing rules.

Are you wondering about any of the issues mentioned above? Please email us at info@wilkinsonlawllc.com or call (732) 410-7595 for assistance.

At Wilkinson Law, we give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®