As a result of the Fifth Circuit's emergency stay, the January 1, 2025 deadline for the Corporate Transparency Act — which requires over 33 million businesses in the United States to file beneficial ownership information or face penalties of up to $10,000 — has been reinstated.

FinCEN has appealed a recent federal court ruling that temporarily blocked the Corporate Transparency Act (CTA) and its Beneficial Ownership Information Reporting (BOIR) rules. Along with the appeal, FinCEN has requested an emergency stay to reverse the injunction and potentially reinstate the January 1, 2025, compliance deadline. If granted, businesses would need to comply with the reporting requirements, which include disclosing ownership details.

Nationwide injunction blocking enforcement of the Corporate Transparency Act (CTA) and FinCEN's Beneficial Ownership Information Reporting (BOIR) rules. The court ruled that these requirements overreach federal powers and impose unfair burdens on small businesses. While the injunction pauses the January 1, 2025, compliance deadline, FinCEN is expected to appeal and may seek a stay to reinstate the rules.

OpenAI is potentially undergoing a major corporate restructure, considering a shift to a Public Benefit Corporation (PBC) to balance its mission of developing ethical AI with the need for substantial funding. This follows the departure of key executives, including CTO Mira Murati and VP of Research Barret Zoph, signaling significant internal changes.

A federal judge in Texas has officially blocked the U.S. Federal Trade Commission (FTC) from enforcing a nationwide ban on non-compete agreements in the United States. This means that the provisions of the FTC’s ban – which were scheduled to take effect nationwide on September 4, 2024 - will no longer take effect for the time being.

In Florida, shareholders of corporations and members of LLCs have legal rights to inspect corporate records. Shareholders can review financial statements, shareholder lists, and other key documents by giving at least five business days' notice, provided the request is made in good faith. LLC members have similar rights under Section 605.0410, with access to records like member lists and financial documents.

Maintaining adequate corporate books and records protect the limited liability of a legal entity. Proper records help prevent "piercing the corporate veil," which could hold shareholders personally liable. In states like Florida and Delaware, shareholders have rights to inspect these records under certain conditions.

This article provides a thorough overview of single-member LLCs, a popular business structure for international companies looking to establish a U.S. presence. The key benefits highlighted include limited liability protection, tax flexibility, and ownership flexibility without residency requirements. Legal considerations are also covered, such as the importance of an operating agreement, maintaining the corporate veil, and regulatory compliance.

IRS Form 5472 is essential for foreign-owned U.S. businesses. Form 5472 is a requirement for entities that are at least 25% foreign-owned and the failure to file can result in penalties starting at $25,000 per form. The Inflation Reduction Act is likely to increase IRS scrutiny of these forms significantly so it is important to stay updated.

The FTC proposed a nationwide ban on non-compete agreements, arguing they limit job mobility, suppress wages, and hinder entrepreneurship. While many states and worker advocacy groups support the ban, businesses have filed lawsuits, claiming the FTC lacks the authority for such a sweeping rule. Courts have issued conflicting rulings, with some supporting the ban and others questioning the FTC’s power. The outcome of these legal challenges could reshape U.S. labor practices.