You may have seen recent headlines about the Corporate Transparency Act (CTA) and its new reporting requirements for small businesses and LLCs. A recent legal decision has put these rules on hold—for now—but that could change. While no immediate action is needed, it’s important to stay informed.

As of December 27, 2024, the U.S. Court of Appeals for the Fifth Circuit issued a nationwide preliminary injunction, suspending enforcement of the CTA and its Beneficial Ownership Information (BOI) reporting requirement. This includes the January 13, 2025, deadline for companies formed before 2024. We’ll continue to monitor developments and keep you updated on what this means for your LLC or business entity.

With a new administration taking office, potential tax law changes could significantly impact estate and wealth transfer planning. One major uncertainty is whether the Tax Cuts and Jobs Act (TCJA) will sunset as scheduled in 2025, causing the federal estate and gift tax exemption to drop from its historically high levels. The administration may push for an extension, seek to make the higher exemption permanent, or propose a completely new approach—potentially even eliminating the estate tax altogether. There have also been discussions about overhauling the income tax system, with some extreme proposals suggesting its complete repeal. Given these uncertainties, staying informed and proactive is critical. We will provide an update as soon as new details emerge, so be sure to check back next month or look out for our next alert.