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.
Updating a Manager's or Director's residential address on Sunbiz is crucial for Florida LLCs and corporations to stay compliant and receive important legal notices. Also, ensure Beneficial Ownership Information is updated with FinCEN within 30 days of the address change. Follow the steps on Sunbiz to update your address, including providing details like business name, registration number, and new addresses.
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, enforces regulations to combat financial crimes in the United States.
With new BOIR compliance, LLCs and corporations must file reports detailing beneficial ownership to FInCEN.
FinCEN issues two types of IDs: one for reporting companies and another for individuals. It is important to understand important distinctions between the two.
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.