Temporary Pause on Corporate Transparency Act Enforcement

December 13, 2024
We wanted to share an important update about the Corporate Transparency Act (CTA) and its potential impact on businesses across the United States.

On December 3rd, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction halting the enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting requirements. This pause provides businesses with temporary relief but also raises critical questions about what comes next.


What is the Corporate Transparency Act?

The CTA, enacted in 2021 as part of the Anti-Money Laundering Act, requires corporations, LLCs, and similar entities to report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This includes:
  • Full legal names
  • Dates of birth
  • Residential or business addresses
  • Identification numbers (e.g., from passports or driver’s licenses)
Non-compliance could lead to penalties, including fines up to $10,000 or imprisonment for up to two years.


What the Court Ruled

The court issued the injunction over several concerns:
  • Federal Overreach: The CTA introduces regulations traditionally governed by state law, raising concerns about the balance of federal and state authority.
  • Privacy Concerns: The requirement to disclose sensitive personal data, such as identification numbers and residential addresses, has been criticized as a potential violation of Fourth Amendment protections.
  • Impact on Small Businesses: The compliance costs and administrative burden fall heavily on small and medium-sized businesses, which may lack the resources to meet the reporting requirements effectively.
While the CTA remains intact, enforcement is temporarily paused while the case proceeds through the judicial system.


What Should You Do Now?

For now, businesses classified as “reporting companies” are not mandatorily required to submit BOI reports to FinCEN before the filing deadline until further actions are required. Business should:

  1. Stay Informed: The government may appeal this decision, and the injunction could be lifted.
  2. Prepare for Compliance: Use this time to identify beneficial owners and gather necessary documentation in case reporting requirements resume.
  3. Consult with Legal Counsel: If you’re unsure whether your business is impacted, we can help clarify your responsibilities and any applicable exemptions.

What’s Next?

The federal government is expected to appeal the ruling, and the case may ultimately reach the U.S. Supreme Court. This means the legal status of the CTA could change again in the near future.


How We Can Help

We’re keeping a close eye on this evolving situation and are here to help you navigate the uncertainty. Whether you need clarity on your business’s classification or assistance preparing for potential compliance, don’t hesitate to reach out.

Email: contact@junwanglaw.com
Phone: 212-679-9700

Urgent: Calling All Business Owners – Corporate Transparency Act (CTA) BOI Filling Deadline Approaching

December 3, 2024
The deadline to file your Beneficial Ownership Information (BOI) report under the Corporate Transparency Act (CTA) is rapidly approaching. Effective January 1, 2024, this federal mandate applies to most U.S. companies and represents a pivotal measure to enhance financial transparency and combat financial crimes such as money laundering and tax evasion.

If your company has not yet completed its filing, the final date to comply is December 31, 2024.


Filing Requirements Overview



Who Must File?

  • Required: Most U.S.-based corporations, LLCs, and foreign entities registered to do business in the United States.
  • Exempt: Certain large or regulated entities, including publicly traded companies and certain nonprofit organizations.

What Information Must Be Reported?

  1. Beneficial Owners
    • Individuals owning 25% or more of the entity.
    • Those with substantial decision-making authority, such as executives.
  2. Company Applicants (for entities formed after January 1, 2024):
    • Individuals who filed or were responsible for registering the entity.
  3. Information to Provide:
    • Full name, date of birth, residential address, and a valid government-issued ID.

Deadlines and Compliance

  • Entities Formed Before 2024: File by January 1, 2025.
  • Entities Formed in 2024: File within 90 days of formation.
  • Entities Formed After January 1, 2025: File within 30 days of formation.

Penalties for Non-Compliance

    • Civil Penalties: $500 per day for late or inaccurate filings.
    • Criminal Penalties: Fines up to $10,000 or imprisonment for up to two years for willful violations.

    Why This Matters

    Failure to comply may result in significant fines, reputational harm, and operational disruptions. Filing is not merely a legal obligation—it is essential to protecting your business.



    Act Now to Ensure Compliance


    With the January 1, 2025 deadline approaching, it’s crucial to take action now. Safeguard your business, avoid penalties, and maintain peace of mind.
    If you would like to discuss this information further or need assistance with the filing, please contact the attorney responsible for your account, or reach us through the following methods:

    Email: contact@junwanglaw.com
    Phone:212-679-9700

    For more information in Chinese, please visit here.

    December 2024 Visa Bulletin Update

    November 25, 2024
    Quick Recap

    • Next month, USCIS will accept any employment-based adjustment of status (AOS) applications from foreign nationals whose I-140 priority dates are earlier than the corresponding Dates for Filing listed in the State Department’s December 2024 Visa Bulletin.
    • In December, the Final Action Dates and Dates of Filing of all employment-based categories for most countries, including China, will remain the same as November.
    • In December, the Final Action Dates and Dates of Filing of all family-based categories for all countries will remain the same as November.



    Employment-Based Final Action Dates for December 2024:
      • EB-1
        •  China: November 8, 2022
        •  India: February 1, 2022
        •  All other countries: Current (applications may be filed regardless of the applicant’s priority date.)
    •  
      • EB-2
        • China: March 22, 2020
        • India: August 1, 2012
        • All other countries: March 15, 2023

      • EB-3
        • China: April 1, 2020
        • India: November 8, 2012
        • All other countries: November 15, 2022



    Employment-Based Dates for Filing for November 2024:


    To be eligible to file an employment-based AOS application in December, foreign nationals must have an I-140 priority date that is earlier than the Dates for Filing listed below for their preference category and country:
      • EB-1
        • China: January 1, 2023
        • India: April 15, 2022
        • All other countries: Current (applications may be filed regardless of the applicant’s priority date.)
    •  
      • EB-2
        • China: October 1, 2020
        • India: January 1, 2013
        • All other countries: August 1, 2023
    •  
      • EB-3
        • China: November 15, 2020
        • India: June 8, 2013
        • All other countries: March 01, 2023

    For more details, please visit the State Department’s December 2024 Visa Bulletin.

    Super Lawyers 2024: Legal Excellence in Business and Corporate, Real Estate, and Immigration Law

    October 24, 2024
    Dear Valued Clients and Partners,

    We are excited to announce that Jun Wang & Associates, P.C. has once again been recognized by Super Lawyers for 2024, showcasing our continued excellence in real estate, business and corporate law, and business immigration. This recognition marks another year of distinction, reinforcing our commitment to providing exceptional legal services to a diverse clientele, including global corporations, high-net-worth individuals, small businesses, entrepreneurs, and property owners.

    Karine K. Wang, our managing partner, has been honored as a Top Rated Super Lawyer for the second consecutive year, following her acknowledgment in 2023. Her recognition as a Top Rated Business and Corporate Attorney in New York highlights her outstanding qualifications and unwavering dedication to excellence in the legal profession. She has also been featured in the Super Lawyers’ New York Metro Top Women 2024 list, recognizing her exceptional achievements.

    Yan Fu, a partner specializing in real estate law, has once again been recognized as a Rising Star for 2024, continuing her streak of accolades since 2021. Honored as a Top Rated Real Estate Attorney by Super Lawyers, Ms. Fu has consistently demonstrated her expertise and has been appointed as the preferred Purchaser Attorney for significant projects such as Brooklyn Point, 25 Broad Street-The Broad Exchange Building, and Tangram South.

    Zhirong (Archie) Liu, also a partner at the firm, focuses his practice on corporate/business law, business immigration, and intellectual property. Mr. Liu has received the Rising Star distinction from 2022 to 2024 and is recognized as a Top Rated Immigration Attorney in New York City, underscoring his commitment and skill in navigating complex legal challenges.

    These prestigious honors, awarded to the top 5% of attorneys nationwide, reflect our unwavering dedication to delivering outstanding legal services across a wide range of industries and clients..

    Be sure to look for us in Westchester Magazine this November! 

    Thank you for your continued trust and support.

    Best regards,
    Jun Wang & Associates, P.C.