First, you only must file an initial report once. There are no annual reporting requirements. Filing deadlines vary based on when a company was created or registered with the relevant secretary of state.
Before Jan. 1, 2024, => Deadline of Jan. 1, 2025
Between Jan. 1, 2024, and Jan. 1, 2025, => You have 90 calendar days after receiving notice of the company’s creation or registration to file.
On or after Jan. 1, 2025, => Deadline is 30 calendar days from the company’s creation or registration.
While there is no annual filing requirement, filing updates are necessary within 30 days of any changes. Ownership activity subject to change reporting includes registering a new business name, a change in beneficial owners, or a beneficial owner’s name, address, or unique identifying number previously provided.
What Do You Need to Report?
Beneficial ownership reporting must identify the following data.
At the company level, it must report:
Company name, both legal and trade (if applicable)
Company physical address (no post office boxes)
Jurisdiction of formation or registration
Taxpayer Identification Number
For each beneficial owner, the following must be reported:
Name
Date of birth
Address
Driver’s license, passport, or other acceptable identification
Depending on the situation, there also may be reporting requirements about the company applicant. This is generally a person involved in the creation or registration of the company. The same four pieces of data as for a beneficial owner would need to be provided.
As a general rule, a beneficial owner is someone who controls the company or owns 25 percent or more.
No financial information or details about the business operations are required.
How and Where to File
You have the option to file online or via PDF. Filing online can be done through the Beneficial Ownership Information (BOI) E-Filing System on the FinCEN site.
There is no cost to file.
Conclusion and Cautions
While the reporting is simple, the requirements should not be taken lightly. Failure to report could result in civil penalties of up to $500 per day and criminal charges of up to two years imprisonment and a fine of up to $10,000.
The message is this: Don’t wait – and don’t forget to file!
U.S. Beneficial Ownership Information Reporting Begins
March 1, 2024 · Blog, Tax and Financial News, Uncategorized
⏱ 4 min read
The U.S. Treasury recently enacted a new reporting requirement aimed at quashing illicit financial transactions. The agency believes that corporate anonymity is enabling money laundering, terrorism, and drug trafficking. As part of the 2021 Corporate Transparency Act (CTA), certain companies are now required to report information about their beneficial owners. The goal of the new registration requirements is to create a centralized database of beneficial ownership information.
There has been push-back from some lawmakers and small business organizations, citing this as an erroneous regulatory process that just makes life harder for small businesses. Efforts to carve out exceptions or delay the implementation failed. As a result, the Treasury Department officially opened beneficial ownership information reporting on Jan. 1, 2024.
Who is Subject to Reporting?
Generally, a company may need to report beneficial ownership information if it is a corporation, LLC, or other business entity created by the filing with a U.S. secretary of state or a foreign company registered to do business in the United States. Reporting requirements for trusts and other entity types are more dependent on state law.
At first glance, the rules make it look like all businesses are subject to reporting. There are exemptions, however, including nonprofits, publicly traded companies, and certain large operating companies. The FinCEN’s Compliance Guide provides an exemption qualification checklist.
Reporting Timelines and Requirements
First, you only must file an initial report once. There are no annual reporting requirements. Filing deadlines vary based on when a company was created or registered with the relevant secretary of state.
Before Jan. 1, 2024, => Deadline of Jan. 1, 2025
Between Jan. 1, 2024, and Jan. 1, 2025, => You have 90 calendar days after receiving notice of the company’s creation or registration to file.
On or after Jan. 1, 2025, => Deadline is 30 calendar days from the company’s creation or registration.
While there is no annual filing requirement, filing updates are necessary within 30 days of any changes. Ownership activity subject to change reporting includes registering a new business name, a change in beneficial owners, or a beneficial owner’s name, address, or unique identifying number previously provided.
What Do You Need to Report?
Beneficial ownership reporting must identify the following data.
At the company level, it must report:
Company name, both legal and trade (if applicable)
Company physical address (no post office boxes)
Jurisdiction of formation or registration
Taxpayer Identification Number
For each beneficial owner, the following must be reported:
Name
Date of birth
Address
Driver’s license, passport, or other acceptable identification
Depending on the situation, there also may be reporting requirements about the company applicant. This is generally a person involved in the creation or registration of the company. The same four pieces of data as for a beneficial owner would need to be provided.
As a general rule, a beneficial owner is someone who controls the company or owns 25 percent or more.
No financial information or details about the business operations are required.
How and Where to File
You have the option to file online or via PDF. Filing online can be done through the Beneficial Ownership Information (BOI) E-Filing System on the FinCEN site.
There is no cost to file.
Conclusion and Cautions
While the reporting is simple, the requirements should not be taken lightly. Failure to report could result in civil penalties of up to $500 per day and criminal charges of up to two years imprisonment and a fine of up to $10,000.
The message is this: Don’t wait – and don’t forget to file!
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Starting this February, major email providers Gmail and Yahoo are implementing stricter email deliverability rules to combat spam and protect user inboxes. This announcement was made by both Google and Yahoo on Oct. 3, 2023, indicating a united effort to enhance email security.
Initially intended for bulk senders (marketers, businesses, and individuals) sending more than 5,000 emails a day, it also applies to senders who send regular emails to their subscribers and meet criteria as per the updated Google Email Sender Guidelines.
Although it may sound strict, there is nothing to worry about. By understanding the rules and adopting best practices, you can ensure your messages land safely in your subscribers’ inboxes.
Key Rules to Remember
Domain Authentication is Paramount – Implement security protocols, including Domain Keys Identified Mail (DKIM), Sender Policy Framework (SPF), and Domain-based Message Authentication, Reporting and Conformance (DMARC) to verify your sending domain and prevent spoofing. DKIM digitally signs emails for verification. SPF confirms that sending domain authorization prevents spammers from impersonating and sending messages from your domain, while DMARC specifies the handling of unauthenticated emails. Basically, these protocols confirm your sending domain as legitimate and not from a malicious email spammer or phisher. Although these protocols have been previously considered best practices, many senders have unknowingly or knowingly bypassed them. Some have ignored them, considering them challenging to deploy. Hence, the step to enforce them as mandatory requirements.
One-Click Unsubscribe is Mandatory – Make it easy for subscribers to opt out with a clear and accessible unsubscribe link in every email. The unsubscribe requests must be honored within 2 days. You can add an unsubscribe button to the header, whereby recipients can unsubscribe easily instead of marking an email as spam. This will ensure email deliverability is not harmed. Allowing easy unsubscribe also offers the benefit of having an email list of quality subscribers.
Maintain a Low Spam Complaint Rate – Keep your spam complaints below 0.3 percent (ideally, this should be below 0.1 percent) to avoid landing in the spam folder or getting blacklisted. Failing to comply with the spam complaint threshold could put the sending domain under review, restricting your email reach.
Beyond the Rules: Deliverability Best Practices
Clean and Permission-Based Email Lists – Send only to subscribers who have opted-in, and keep your list clean by removing inactive users and bounced addresses.
Personalization and Segmentation – Tailor your emails to individual preferences and segment your list based on demographics, interests, or engagement levels.
Mobile-Friendly Design – Ensure your emails are optimized for mobile devices, as most users check their email on smartphones.
Subject Line Optimization – Craft compelling and relevant subject lines that invite users to open your emails.
Craft High-Quality and Engaging Content – Provide relevant and valuable information to maintain audience interest and avoid being marked as spam.
Avoid Spammy Tactics – Avoid excessive images, ALL CAPS text, and misleading content.
Engagement and Reputation – Encourage engagement by asking questions, including social media links, and providing valuable content. Positive user interactions improve the sender’s reputation.
Consequences of Ignoring the Rules
Failing to adhere to the new rules can have severe consequences, including:
Emails Landing in Spam Folders – Your messages may never reach your intended audience.
Domain or IP Blacklisting – Repeated violations can lead to your domain or IP address being blocked by email providers.
Decreased Sender Reputation – This can negatively impact your future deliverability rates, affecting domain reputation and overall business performance.
Adapting to the New Landscape
Although these requirements may seem overwhelming, they represent an opportunity to improve your email marketing practices and build stronger relationships with your subscribers. By prioritizing sender authentication, clear communication, and valuable content, you can ensure your emails reach the right inboxes and achieve your marketing goals.
Remember, staying informed about email deliverability best practices and adapting to evolving regulations is crucial for successful email marketing in today’s landscape.
New Email Deliverability Rules: Reaching Gmail and Yahoo Subscribers in 2024
February 1, 2024 · Blog, Uncategorized, What’s New in Technology
⏱ 4 min read
Email marketing remains the most powerful and effective tool, especially for its high ROI, reach, and engagement. It plays a significant role in business growth. However, more stringent measures are necessary due to evolving threats, hence the recent email deliverability requirements.
Starting this February, major email providers Gmail and Yahoo are implementing stricter email deliverability rules to combat spam and protect user inboxes. This announcement was made by both Google and Yahoo on Oct. 3, 2023, indicating a united effort to enhance email security.
Initially intended for bulk senders (marketers, businesses, and individuals) sending more than 5,000 emails a day, it also applies to senders who send regular emails to their subscribers and meet criteria as per the updated Google Email Sender Guidelines.
Although it may sound strict, there is nothing to worry about. By understanding the rules and adopting best practices, you can ensure your messages land safely in your subscribers’ inboxes.
Key Rules to Remember
Domain Authentication is Paramount – Implement security protocols, including Domain Keys Identified Mail (DKIM), Sender Policy Framework (SPF), and Domain-based Message Authentication, Reporting and Conformance (DMARC) to verify your sending domain and prevent spoofing. DKIM digitally signs emails for verification. SPF confirms that sending domain authorization prevents spammers from impersonating and sending messages from your domain, while DMARC specifies the handling of unauthenticated emails. Basically, these protocols confirm your sending domain as legitimate and not from a malicious email spammer or phisher. Although these protocols have been previously considered best practices, many senders have unknowingly or knowingly bypassed them. Some have ignored them, considering them challenging to deploy. Hence, the step to enforce them as mandatory requirements.
One-Click Unsubscribe is Mandatory – Make it easy for subscribers to opt out with a clear and accessible unsubscribe link in every email. The unsubscribe requests must be honored within 2 days. You can add an unsubscribe button to the header, whereby recipients can unsubscribe easily instead of marking an email as spam. This will ensure email deliverability is not harmed. Allowing easy unsubscribe also offers the benefit of having an email list of quality subscribers.
Maintain a Low Spam Complaint Rate – Keep your spam complaints below 0.3 percent (ideally, this should be below 0.1 percent) to avoid landing in the spam folder or getting blacklisted. Failing to comply with the spam complaint threshold could put the sending domain under review, restricting your email reach.
Beyond the Rules: Deliverability Best Practices
Clean and Permission-Based Email Lists – Send only to subscribers who have opted-in, and keep your list clean by removing inactive users and bounced addresses.
Personalization and Segmentation – Tailor your emails to individual preferences and segment your list based on demographics, interests, or engagement levels.
Mobile-Friendly Design – Ensure your emails are optimized for mobile devices, as most users check their email on smartphones.
Subject Line Optimization – Craft compelling and relevant subject lines that invite users to open your emails.
Craft High-Quality and Engaging Content – Provide relevant and valuable information to maintain audience interest and avoid being marked as spam.
Avoid Spammy Tactics – Avoid excessive images, ALL CAPS text, and misleading content.
Engagement and Reputation – Encourage engagement by asking questions, including social media links, and providing valuable content. Positive user interactions improve the sender’s reputation.
Consequences of Ignoring the Rules
Failing to adhere to the new rules can have severe consequences, including:
Emails Landing in Spam Folders – Your messages may never reach your intended audience.
Domain or IP Blacklisting – Repeated violations can lead to your domain or IP address being blocked by email providers.
Decreased Sender Reputation – This can negatively impact your future deliverability rates, affecting domain reputation and overall business performance.
Adapting to the New Landscape
Although these requirements may seem overwhelming, they represent an opportunity to improve your email marketing practices and build stronger relationships with your subscribers. By prioritizing sender authentication, clear communication, and valuable content, you can ensure your emails reach the right inboxes and achieve your marketing goals.
Remember, staying informed about email deliverability best practices and adapting to evolving regulations is crucial for successful email marketing in today’s landscape.
Disclaimer
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These are just a few of the items you can put on your financial to-do list. All it takes is carving out some time and getting started. Once you get going, you’ll probably make more progress than you ever dreamed.
February 1, 2024 · Blog, Tip of the Month, Uncategorized
⏱ 3 min read
January has come and gone. You may or may not have stuck to your resolutions, but the good news is that February is here. Now is the perfect time to hunker down and get your monetary ducks in a row. Here are a few things to put on your agenda to get your financial house in order.
Pay Off Holiday Debt
Yes, it was fun to go shopping for holiday gifts, but those interest rates are high – you’ll want to pay your balances off as quickly as possible. And here’s a tip: you can make more than one payment per billing period. In other words, instead of waiting for your next paycheck, pay some of the balance now and some later. This will reduce the interest you’d pay if you waited two more weeks to pay in full. This way, you can actually pay your credit card bills more frequently and pay less over time. While you’re at it, look for lower interest rates and transfer those balances. All it takes is a Google search for “zero balance transfer credit card offers,” and you’ll find what you need in no time.
Start Working on Your Taxes
April will be here before you know it, so getting a jump on taxes is a smart idea. Also, filing early will give you more time to figure out how much you owe, if anything. If you want to take the guesswork out of preparing your taxes, you might consider hiring a tax professional. When you make your selection, ask for a price quote. Some tax preparers often want to see which forms you need before they work on your taxes, but you can still ask for a list of fees for various types of tax help to get a ballpark idea. Here’s a red flag: if someone says they’ll base your fees on a percentage of your refund, run away. This is a violation of IRS rules.
Get a Free Credit Report
All the big reporting companies – Equifax, Experian, and TransUnion – offer a free report one time every 12 months. So why not find out? When you see the truth of your credit report, it can motivate you to change some habits, like paying earlier, more often, and on time. No one likes late fees.
Save on a Gym Membership
In January, you probably got pummeled with lots of solicitations for a gym membership at low, low prices, but in February, the prices are even lower. If you don’t want to commit, you can sign up for a trial run. You can even negotiate a deal if you ask to speak to the manager. Finally, some gyms will offer you a deep discount if you agree to use the facilities during off-peak hours or on certain days. Flexibility is the key!
Buy Things on Deep Discount
With high prices and high-interest rates, it makes sense to check out all the price cuts on Consumer Reports. On this site, you’ll find all the good stuff: cars, home and garden supplies, appliances, electronics, and more.
These are just a few of the items you can put on your financial to-do list. All it takes is carving out some time and getting started. Once you get going, you’ll probably make more progress than you ever dreamed.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
Of course, you’ll need food, toiletries, and general household staples, but here’s your chance to step back and make lists, as opposed to running out to Target or Starbucks for a quick adrenaline rush. Plan your trips out. Buy store brands. Check prices. Use those coupons. Set your sights on the long view of the month, if not the year. This is one way to work toward getting fiscally fit.
Eat Everything in Your Pantry
You probably have cans of soup and pasta sitting on your shelves. Maybe even some canned veggies. Google some simple recipes with the items you have, add some spices, and voila, you’ve got a tasty, no-spend meal. Nothing like this can lead to long-term savings.
Forgo Eating Out
Once more, this tip is related to the first two. Truth is, you’ll want to go out to eat a few times – so go – but within reason. The trick is to find affordable spots with delicious grub. Another money-saving idea: split your entrees. You’ll not only save dollars but also calories.
Reevaluate Your Subscriptions
This is something that might creep up on you during the year. While you’ve been scrolling these past months, you might have seen an irresistible product, and you just had to have it – whether it was special vitamins, a hip magazine, or yet another streaming station with all those binge-worthy shows you can’t stop watching. But you might ask yourself: are these expenditures really improving my life? Once you see how much money you’ll be saving, you’ll most likely feel better (new and improved!) already.
Invest the Money You’re Saving
Now that you’ve cut back, you should have a surplus of cash accumulated over the year. So, what to do? One of the best things to do is tuck it away in a high-yield savings account. Just like with regular (traditional) savings accounts, you can withdraw when you want to. But with a high yield, you’ll most likely have a limit to how often you can take money out, which is usually six times per month without a fee. The main difference between a traditional and high-yield savings account is the interest rate. The current national average interest rate for a traditional savings account is 0.64 percent APY. Comparatively, top high-yield savings accounts pay between 4.25 percent and 5.27 percent. You in? Thought so.
Moral of the story? No-spend January is all about starting some new habits for 2024 – and watching them pay off. This way, during the new year, you’re not just working for your money, but allowing your money to work for you.
How a No-Spend January Can Kickstart Your New Year
January 1, 2024 · Blog, Tip of the Month, Uncategorized
⏱ 3 min read
Here we go again. The new year is approaching, and those resolutions are staring us in the face – and the most common? Saving money. In fact, according to YouGov, this is the most important resolution for American adults. Now, certainly, you can’t not spend money in January (you have to eat), but the idea is to rid yourself of any unnecessary cash outflow so you can kickstart the year with some solid financial habits.
Limit Trips to the Store
Of course, you’ll need food, toiletries, and general household staples, but here’s your chance to step back and make lists, as opposed to running out to Target or Starbucks for a quick adrenaline rush. Plan your trips out. Buy store brands. Check prices. Use those coupons. Set your sights on the long view of the month, if not the year. This is one way to work toward getting fiscally fit.
Eat Everything in Your Pantry
You probably have cans of soup and pasta sitting on your shelves. Maybe even some canned veggies. Google some simple recipes with the items you have, add some spices, and voila, you’ve got a tasty, no-spend meal. Nothing like this can lead to long-term savings.
Forgo Eating Out
Once more, this tip is related to the first two. Truth is, you’ll want to go out to eat a few times – so go – but within reason. The trick is to find affordable spots with delicious grub. Another money-saving idea: split your entrees. You’ll not only save dollars but also calories.
Reevaluate Your Subscriptions
This is something that might creep up on you during the year. While you’ve been scrolling these past months, you might have seen an irresistible product, and you just had to have it – whether it was special vitamins, a hip magazine, or yet another streaming station with all those binge-worthy shows you can’t stop watching. But you might ask yourself: are these expenditures really improving my life? Once you see how much money you’ll be saving, you’ll most likely feel better (new and improved!) already.
Invest the Money You’re Saving
Now that you’ve cut back, you should have a surplus of cash accumulated over the year. So, what to do? One of the best things to do is tuck it away in a high-yield savings account. Just like with regular (traditional) savings accounts, you can withdraw when you want to. But with a high yield, you’ll most likely have a limit to how often you can take money out, which is usually six times per month without a fee. The main difference between a traditional and high-yield savings account is the interest rate. The current national average interest rate for a traditional savings account is 0.64 percent APY. Comparatively, top high-yield savings accounts pay between 4.25 percent and 5.27 percent. You in? Thought so.
Moral of the story? No-spend January is all about starting some new habits for 2024 – and watching them pay off. This way, during the new year, you’re not just working for your money, but allowing your money to work for you.
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact a professional regarding the topics in these articles. The images linked to these articles are protected by copyright and should not be copied for any reason.
The U.S. Treasury recently enacted a new reporting requirement aimed at quashing illicit financial transactions. The agency believes that corporate anonymity is enabling money laundering, terrorism, and drug trafficking. As part of the 2021 Corporate Transparency Act (CTA), certain companies are now required to report information about their beneficial owners. The goal of the new registration requirements is to create a centralized database of beneficial ownership information.
How and Where to File
