By Morgan Davis, Health and Wellness Attorney

If you’ve been riding the roller coaster that is the Corporate Transparency Act (CTA), you’re not alone. Entrepreneurs, attorneys, and compliance professionals alike have been whiplashed by the on-again, off-again status of this sweeping regulation. As of March 2025, however, we may finally be reaching the end of the ride.

What Was the Corporate Transparency Act?

The CTA, which went into effect on January 1, 2024, required U.S. companies to disclose their beneficial owners—the individuals who actually own or control a business. The goal was to create a database aimed at cracking down on criminal activity like money laundering and tax evasion through shell corporations.

If your company was formed before January 1, 2024, you had until January 1, 2025 to file a Beneficial Ownership Information (BOI) report. Companies formed in 2024 originally had 90 days to comply, although that deadline was later extended. Starting in 2025, new companies would have had only 30 days to file.

Or at least, that was the plan.

The Legal Whiplash

In just four months, the CTA has been halted, reinstated, extended, and halted again—not once, not twice, but six times. Lawsuits, federal injunctions, and natural disasters all contributed to the uncertainty. Many of us in the legal world began to suspect that enforcement might never fully materialize.

And now, it seems that suspicion was correct.

The March 2nd Treasury Announcement

On March 2, 2025, the U.S. Department of Treasury announced it would no longer be enforcing the CTA as it currently stands. That means the March 21st filing deadline has been withdrawn, and the penalties of up to $500/day are no longer in play.

The Treasury also indicated plans to propose a new rule in the future, which will likely narrow the scope of the CTA significantly. The expectation is that the revised regulation will apply only to foreign companies doing business in the U.S.—not domestic LLCs or small business owners.

What This Means for You

• If you already filed your BOI: Well done. You’re compliant, and no further action is needed.
• If you haven’t filed yet: You’re no longer required to file under the current law.
• If you still want to file for peace of mind: Feel free to reach out—I’m happy to walk you through it.

The Takeaway

For now, the CTA is on hold—and may be permanently shelved for U.S.-based businesses. While we’re always prepared for future shifts, this looks like a win for small business owners who’ve spent the last year trying to decode their obligations.

We’ll continue to monitor updates and keep you informed if anything changes. But for now, go ahead and cross “file BOI report” off your compliance to-do list.

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