Updated February 20, 2025
As we step into 2025, businesses are faced with a mix of legal, regulatory, and strategic challenges that could significantly impact operations. From state filing deadlines to federal regulatory changes, and emerging global business trends, here’s what you need to know to stay ahead of the curve.
State Compliance: Annual Reports.
For businesses operating in the Carolinas, it’s important to remember that annual reports are coming up. For North Carolina LLCs and corporations, these are due to the Secretary of State by April 15th each year.
South Carolina’s requirements differ slightly. South Carolina corporations must file their annual reports alongside their corporate tax returns by March 15th each year to the South Carolina Department of Revenue. LLCs are not required to file an annual report but should still take care to work with their CPAs to meet any applicable tax deadlines.
In both states, failing to file the annual report will eventually result in penalties or even the dissolution of the business—both of which have the potential to carry steep consequences. For example, if your business incurs a liability while dissolved, the business owner will lose the liability protection afforded by the LLC form and will personally assume the business’s liability. You can avoid this risk by filing your annual report on time every year.
Federal Compliance: FinCEN BOI Reports and Worker Classifications
FinCEN Beneficial Ownership Interest Report. At this point, you have likely heard of the FinCEN BOI Reporting requirement for businesses. In the past few months, there have been important legal developments for business owners to note regarding the requirement and its enforceability.
While the original deadline for most companies to file their FinCEN BOI Report was set for December 31, 2024, various federal court rules made since early December 2024 pushed this deadline. Depending on the outcome of the legal disputes related to these court rulings, there was the potential that the requirement would be eliminated altogether. However, as of a court decision rendered on February 18, 2025, the requirement has been reinstated and all filers have been given to March 21, 2025, to comply with the filing requirement.
According to the U.S. Department of Treasury, FinCEN will potentially extend this deadline, but best practices for all businesses at this time is to proceed to file their FinCEN report by March 21, 2025, if they have not done so already.
Worker Classification & Independent Contractors. The Department of Labor’s updated rule on independent contractor classification under the Fair Labor Standards Act (FLSA) takes effect on March 11, 2025. This rule revises the test that determines whether a worker is an independent contractor or employee. Unfortunately for businesses, the revised test makes it harder to classify a worker as a contractor.
The six-factor test evaluates aspects such as the degree of control exercised by the employer and the worker’s opportunity for profit or loss. Misclassification can lead to costly legal disputes and penalties (for example, back taxes to the government and benefits to the worker). If your business relies on or utilizes independent contractors, you should take care that this classification is still accurate and that your contracts are up to date.
FTC’s Noncompete Rule. Last year, the FTC proposed a rule banning employee non-compete agreements in most circumstances. Ever since its publication, the rule has faced substantial legal hurdles. On August 20, 2024, the U.S. District Court for the Northern District of Texas invalidated the rule in the court case Ryan, LLC v. FTC, ruling that the FTC overstepped its constitutional authority and that the rule was arbitrary and capricious. This decision prevents the FTC from enforcing the rule nationwide. The FTC appealed the decision to the Fifth Circuit Court of Appeals on October 18, 2024. Depending on the outcome, the case could escalate to the Supreme Court.
As is the case with the FinCEN BOI report, enforcement of this rule is currently halted and awaits the conclusion of the legal disputes challenging the law. Businesses should review their use of non-competes to ensure compliance with evolving standards and with any state laws governing non-competes.
Emerging Trends: Adapting to a Changing Business Landscape
In addition to the foregoing state and federal compliance concerns, businesses should also pay attention to emerging trends that could impact operations and risk management. AI-driven automation is advancing rapidly, raising ethical and privacy concerns that demand responsible oversight. At the same time, evolving state tax policies require businesses, especially those operating across multiple jurisdictions, to stay informed and adapt accordingly.
With this ever-evolving tech landscape, cybersecurity should remain a top priority as cybersecurity attacks increasingly target small businesses with more frequency and sophistication. Implementing strong security measures—such as multi-factor authentication, regular software updates, and employee training—can help protect sensitive data. As technology reshapes the business landscape, companies must balance innovation with robust privacy policies governing the retention and handling of sensitive data and security safeguards.
Continue through 2025 and the Future with Confidence
Navigating the complexities of state and federal regulations while adapting to technological and economic shifts can feel like a full-time job. However, staying informed about these trends is essential to keeping your business compliant and competitive. At Skufca Law, we’re here to help you understand how these changes impact your operations and guide you in making informed decisions.
The start of the year is the perfect time to assess your compliance, review your contracts, and plan strategically for the future. Don’t wait until deadlines or legal challenges catch you off guard—reach out to us for proactive legal support tailored to your business needs.
Contact Skufca Law at (704) 376-3030 to discuss your business’ legal needs for 2025 and beyond.