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.

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.

The Financial Crimes Enforcement Network (FinCEN) safeguards the financial system against illicit activities using the Beneficial Ownership Information Reporting (BOIR) E-Filing System, enabling electronic submissions by financial entities. Users often face the "Invalid attachment" error, which occurs due to improper file formats (only JPG/JPEG, PNG, PDF accepted) or filenames with spaces/invalid characters. To resolve this, ensure files are correctly formatted and named.

The Corporate Transparency Act (CTA) mandates that LLCs and Corporations in the U.S. report detailed information about their beneficial owners and company applicants to FinCEN. This includes the full legal name, date of birth, residential or business address, and an identifying number from an acceptable ID document (such as a driver's license or passport), along with an image of the document.

The FTC has banned non-compete agreements in the U.S., marking a major shift in employment law. This move enhances job mobility, wage potential, and entrepreneurship, though NDAs and trade secret protections remain in force. Non-competes previously restricted employees from working for competitors or starting similar businesses post-employment. The ban supersedes state laws, requiring employers to pivot to stronger NDAs, trade secret protections, and improved employee retention strategies.

An Operating Agreement (OA) for an LLC, though not always legally required, is crucial for business success. It outlines members' rights, responsibilities, and management structure, helping to prevent disputes, anticipate problems, and facilitate fair business sales. Having an OA provides clarity and can protect members' interests, ensuring smoother operations and fewer conflicts. Consult a lawyer to draft a tailored and detailed agreement for your LLC.

Businesses in Florida must file an Annual Report through SunBiz to stay compliant and avoid penalties. SunBiz, the state's official portal, facilitates filings and updates for LLCs, corporations, and partnerships. Key requirements include filing by May 1st, updating registered agents, verifying business info, and paying a fee (about $138.75). Non-compliance can result in late fees up to $400 and/or administrative dissolution of the LLC or Corporation in Florida.