Business Ownership Reporting and Student Loan Updates: A Historical Snapshot

Hello,

I am finding not everyone has been made aware of this new reporting requirement. Please see below if you own a business or LLC.

IMPORTANT DEADLINE FOR BUSINESS OWNERS & LLC OWNERS

This is a friendly reminder for all business owners that your Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN) may be due by December 31, 2024.

If your business was established before January 1, 2024, you have a couple of months left to meet the federal deadline. If your business was formed on or after January 1, 2024, you typically have 90 days to file the report.

Here’s what you need to know about this new federal requirement and how it may affect you:

The new law requires small businesses to disclose ownership information to FinCEN, which can help identify individuals who own or control companies.

To comply, businesses must file an initial BOI Report with FinCEN, providing the following information for each owner or controller of the company:

• Business name
• Current business address
• State of formation and Entity Identification Number (EIN)
• Owner/controller’s name, birth date, and current address
• Photocopy of a government-issued ID (e.g., driver’s license or passport)

Additionally, if any of this information changes after the initial filing, a new report must be submitted immediately.

Penalties: Failure to file the initial or updated BOI Report can result in significant fines ($500 per day) or imprisonment for up to two years.

Does This Apply to Your Company?

Most small businesses are required to comply with the Corporate Transparency Act, but there are exceptions, such as:

• Non-profits, publicly traded companies, and regulated entities like banks
• Large companies with more than 20 employees and over $5 million in annual revenue
• Inactive entities not conducting business

Not Sure If This Applies to You? If you’re unsure whether your company needs to file the BOI Report, you may want to call your CPA or Lawyer. Both my CPA & Lawyer contacted me about this, and they both offered to help file this for me for a fee.

You can also do it yourself by going online to boiefiling.fincen.gov. There is a 5-minute video that demos how to file the report yourself here.

Roth IRA Deadline

Roth IRA Deadline

Have you contributed to your Roth IRA yet for 2024?

As I have discussed in the past, we are big fans of Roth IRAs.

Why? Because most likely your 401k is 100% pre-tax and there is now way of knowing with certainty what tax rate you will be paying in retirement when your withdraw from your 401k.

Investing in a Roth IRA will help balance out your taxable 401k account with a tax-free account in the future.

The deadline is April 15th, 2025, however if you are doing a back door Roth IRA, we like to do these prior to December 31st, 2024, as it makes the tax filing less complicated.

Just remember, you should not do a back door Roth contribution if you have a Traditional IRA or SEP IRA as the contribution becomes taxable.

=The maximum amount is $7,000 if under 50 and $8,000 if over 50.

Student Loan Update

A federal student loan repayment plan titled SAVE has been tied up in court.

What you need to know if you are on the SAVE plan is payments have been paused and no interest is accruing on your loans.

There was a court hearing last week and essentially kicked the can down the road.

I have read we may know more in 2 - 6 weeks and of course everything could change depending on the election outcome.

Right now, I would take advantage of not having any payments by saving what should be going to student loans into a separate account.

Remember that you can do a "buy back" at the end of your student loan forgiveness for these months that have been paused.

For example, let's say this drags on for 6 months - that would push your forgiveness plan back 6 months.

If your income is higher at that point, you would owe more on your student loans.

OR, you can "buy back" and pay those 6 months you lost with a lump sum assuming your income was lower during this period and you have the cash to do so.

Which is why I suggest saving what you would have been paying into a dedicated separate savings account - might as well be earning 4+% interest in the meantime with a high yield savings account at CapitalOne or Marcus.