Federal Court halts Corporate Transparency Act

THE U.S. DISTRICT Court for the Eastern District of Texas issued a nationwide preliminary injunction on Dec. 3, halting enforcement of the Corporate
Transparency Act and its regulations. AAHOA called the decision a significant victory for small business owners, including its members.

The CTA, aimed at enhancing corporate ownership transparency, faced criticism for imposing heavy compliance burdens on small businesses. The act, which became
effective Jan. 1, required nearly 33 million U.S. businesses classified as “reporting companies” to disclose their beneficial owners to the Treasury Department’s
Financial Crimes Enforcement Network by Jan. 1, 2025.

“This decision is a monumental win for small business owners, including AAHOA members, who were facing unnecessary regulatory burdens under the CTA,” said Miraj
Patel, AAHOA chairman. “AAHOA stands firmly with its members in advocating for fair regulations that promote business growth. We commend the court’s ruling and
will continue to monitor developments to ensure our members’ voices are heard.”