Last week the markets declined, partly because of the October jobs report. While unemployment remained steady at 4.1%, only 12,000 jobs were added last month.[1] Initial jobless claims remained low, as Hurricanes Milton & Helene, coupled with the ongoing Boeing strike, made the job market look much worse than it really is. That said, it is taking longer for white collar workers to find new jobs, so your emergency savings remains a cornerstone of your financial plan.
As we approach year end, everyone who owns a business needs to be aware of new Department of the Treasury reporting requirements. The Corporate Transparency Act was passed in 2021, and requires small, privately owned businesses to report all beneficial owners by December 31st.
If you own an LLC, either as your primary source of income or as a side hustle, and you have under 20 employees and make less than $5 million annually in revenue, you fall under this requirement. There are some exceptions by industry, such as banks and public accounting firms.
Anyone who exercises control over the business, or owns 25% or more of the company, needs to be reported. You will need to report their legal name and address, date of birth, and either driver’s license or passport number.
Companies that existed prior to 2024 have until January 1st to file their report. Companies established in 2024 or later have 90 days to file. Here’s the important part: every day past the deadline, you can be subject to a fine of $591. If you have a small business, and haven’t already reported your beneficial owners to the government, now is the time to do so. You can find more information at fincen.gov.
Your action item this week to check your tire pressure. As the weather cools, you can lose tire pressure, which makes your tires wear faster and reduces gas mileage.
Be sure to check out our website at covingtonalsina.com, or our Facebook page, for more information and to register for our upcoming educational events. Don’t forget to drop by our office with a sweater, fleece, or sweatshirt for #justonesweater.
CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
[1]https://www.dol.gov/newsroom/releases/osec/osec20241101#:~:text=WASHINGTON%20%E2%80%93%20Acting%20Secretary%20of%20Labor,from%20hurricanes%20and%20strike%20activity.