This month, the writers of Women on Money & Mindset are focusing on “Five key pieces of advice.” Our perspective come from a financial planner, a lawyer, a CPA and an executive coach.
One of my points today is the notion that laws change. A federal district court ruling last week really brought that point home.
On Friday, March 1, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act, enacted in 2021 and written about in this column several times, is unconstitutional.
The CTA required companies to report “beneficial ownership” information to the Financial Crimes Enforcement Network division of the Department of Treasury this year.
Technically, the ruling means the CTA cannot be enforced against the plaintiffs who brought the case (the National Small Business Association), but it likely will have a reaching effect.
So, what’s next? It’s likely that FinCEN will appeal and/or Congress will amend the law. What’s unclear is whether FinCEN will enforce the law against the 30 million small and medium-sized businesses that were not parties to this lawsuit. So, stay tuned.
So, here are my five pieces of advice drawn from 35 years of practicing law…
Laws change
Check in with your advisers on a regular basis. See above!
Tax laws, property laws, contract laws, wills and trust laws, all change over time, and it’s likely that some of the changes will apply to you.
That’s why you need a team of advisers, and you need to check in with them from time to time to make sure the plans you’ve made, the business you run, and the agreements you’ve made all comply with current laws.
Circumstances change
Just like the law, your personal circumstances will change over time. Partnership agreements, operating agreements, buy/sell agreements, trusts, powers of attorney, and other such documents should be reviewed periodically to ensure they still meet your needs.
Do you have a buy/sell agreement that allows…
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