A federal appeals court has reinstated an injunction of the Corporate Transparency Act's required reporting of beneficial ownership information (BOI). The law required most privately owned entities (corporations, LLCs, partnerships and limited partnerships) formed prior to Jan. 1, 2024, to report detailed ownership information for U.S. businesses operating in or accessing U.S. markets.

This decision reverses an order issued by the same court just days ago, “in order to preserve the constitutional status quo while the merits panel considers the parties' weighty substantive arguments.”

The 2021 law required qualifying companies to report their BOI to the Treasury Department's Financial Crimes Enforcement Network (FinCEN), which analyzes financial transactions to combat money laundering and other potential crimes.

Prior to this decision, qualifying companies had until Jan. 13, 2025, to file their initial reports.

Calls for the injunction have been led by the National Federation of Independent Business, several small businesses and the Center for Individual Rights.