FinCen Registration Impacting all Business Owners!

If you’re a small business owner with an LLC, you’ve probably got a million things on your plate—from managing your business finances, payroll, and tax obligations. Well, here’s one more critical task: FinCen (Financial Crimes Enforcement Network) now requires business owners to register their companies starting January 1, 2024. Don’t worry—I’ve got you covered. In this post, I’ll break down:

What FinCen registration is
Who needs to register
How to file your registration
The penalties for failing to comply

What is the FinCen Registration Requirement?

In 2021, Congress passed the Corporate Transparency Act to combat illegal activities conducted through business entities, often referred to as “bad actors” (and no, we’re not talking about Hollywood). Essentially, the law makes it easier for the government to track who is behind an LLC or corporation—who owns it, and who benefits from it. This is a big step toward increasing business transparency.

Who Needs to Register?

So, who exactly needs to file? The law applies to all domestic reporting companies—which is a fancy way of saying any corporation, LLC, or other entities created by filing with a state office in the U.S. Even foreign companies doing business in the U.S. must register with FinCen.

For clarity, I’ve included a flowchart below from the official FinCen website. Take a look to see if your business qualifies.

Are There Any Exemptions?

Yes! There are 23 exemptions, mostly covering financial institutions like banks, insurance companies, and other similar businesses. Check the full list here to see if you’re exempt.

How to Register with FinCen?

Here’s the good news: Filing your Business Ownership Information (BOI) with FinCen is FREE. Yes, you read that right. However, some third-party companies may try to charge you for doing the same thing, so be aware of that. Want to know how to file it yourself? Stay tuned for my next blog, where I’ll walk you through the process, step by step.

Deadlines You Shouldn’t Miss

Here are the key dates you need to know:

If your business was created before January 1, 2024, you have until December 31, 2024, to file.
If your business was formed after January 1, 2024, you only have 90 calendar days from the time your business was created to register with FinCen.

What Happens If You Don’t File?

This is where things get serious. If you fail to register, the penalties are steep. You’ll face a daily fine of $591 (adjusted for inflation) and up to two years in prison. On top of that, there’s a maximum fine of $10,000. Trust me—you don’t want to risk this.

What’s Next?

If you’ve got more questions, reach out to us, or watch my next video where I’ll break down the registration process for you.

By kurpasesther, 3 monthsOctober 17, 2024 ago

Financial Advice

Where to stash your cash in 2024

Exploring High-Yield Savings Accounts (HYSA)

It might be tempting to stash your money under the mattress—especially after the fictional “end of the world” during the solar eclipse on April 8th! But in reality, your cash will serve you better in a High-Yield Savings Account (HYSA). In this post, I’ll dive into why we recommend HYSAs, and why they are the smart choice for your money in 2024. Also, how you can earn more without taking on stock market risk.

The Rise of Online Banking and High-Yield Savings Accounts

What is a High-Yield Savings Account?

Gone are the days when traditional banks offered savings accounts with a meager 0.01% interest. With the rise of online banking, you can now get much higher interest rates due to the lower overhead costs of digital banks. Many banks have transitioned to online-only models, eliminating brick-and-mortar locations and passing those savings on to you, the consumer, in the form of higher yields.

As of April 2024, it’s not uncommon to find HYSAs offering between 4% and 5% annual percentage yield (APY). These accounts provide a guaranteed return on your savings without the risks of the stock market.

Why Choose a HYSA Over the Stock Market?

It’s true that you can typically earn around 10% in the stock market, but the key difference is risk. Stock investments can fluctuate, and you could lose money. Meanwhile, a HYSA offers guaranteed returns and is typically FDIC insured, meaning your deposits are protected up to $250,000.

To put things into perspective, let’s compare the returns of a traditional bank versus a HYSA. A traditional savings account at a bank like Wells Fargo might offer a 0.25% APY. If you deposit $10,000, you’ll earn a mere $25 in interest over the year. But, with a 4.5% APY in a HYSA, that same $10,000 earns you $450 annually—without any added risk!

That extra $450 could buy you nearly 90 Starbucks iced coffees, all by just choosing a better place to park your money.

Top 4 High-Yield Savings Accounts in 2024

1. SoFi Savings Account

APY: 4.6%
Key Features:

Checking and savings account bundle
No monthly fees
$300 bonus with direct deposit setup

The SoFi savings account offers a 4.6% APY, but there’s a catch: you need to pair it with a SoFi checking account and set up direct deposits or deposit $5,000 every 30 days to qualify for the high rate. However, if you’re looking for a new bank, this is a fantastic option—especially with the $300 sign-up bonus for setting up direct deposit.

2. EverBank High-Yield Savings

APY: 5.15%
Key Features:

No monthly fees or minimum balance
FDIC insured
In-person branches (Florida only)

EverBank is offering one of the highest APYs available at 5.15%. With no minimum balance and no fees, it’s an attractive option. However, in-person branches are limited to Florida. If you’re comfortable with online banking, EverBank provides a solid, safe way to maximize your returns.

3. Lending Club High-Yield Savings

APY: 5%
Key Features:

No monthly fees
ATM access
$100 minimum deposit to open

Lending Club offers a solid 5% APY with no account fees and convenient ATM access. The only downside is the $100 minimum deposit required to open the account. However, once open, you don’t need to worry about maintaining a minimum balance.

4. UFB Direct Secure Savings Account

APY: 5.25%
Key Features:

Highest available APY (5.25%)
No monthly fees or minimum balance
24/7 customer support

UFB Direct currently offers the highest APY at 5.25%, making it an incredibly competitive option. They also offer no account fees and 24/7 customer support. However, one downside is that interest rates can fluctuate, so you may need to monitor your account to ensure you’re getting the best rate.

Why Use a HYSA for Your Savings?

HYSAs are ideal for emergency funds or idle cash that you want to keep safe but accessible. Since HYSAs are FDIC insured, your money is protected even in the unlikely event of a bank failure. Unlike the stock market, you won’t risk losing your principal, and you can earn competitive returns without locking up your funds.

Conclusion: Use a HYSA to Maximize Your Returns Safely

In 2024, HYSAs are one of the safest and most profitable places to store your money. With interest rates as high as 5.25% and FDIC protection, they offer a great way to earn a guaranteed return on your savings while keeping your funds easily accessible. Remember, though, that a savings account is not an investment vehicle. If you want to explore more ways to grow your wealth, check out my other blogs on investment strategies!

By kurpasesther, 3 monthsSeptember 17, 2024 ago

Financial Advice Retirement

Financial Freedom and Self-Discovery Guide

Navigate the challenges of debt, build a robust emergency fund, and invest in a brighter future. Explore career paths, embrace self-discovery, and unlock the keys to a fulfilling life at 18 and beyond.

Unlocking Adulthood: Financial Wisdom and Personal Growth Tips for 18-Year-Olds

I remember when I turned 18, all the way back in 2013. Everyone was throwing their phones at the wall from playing flappy bird, Instagram used to look like this and Iphone just came out with their latest 5S. And with only being in America for 6 months at that point, the American money system was the furthest thing from my mind. I want to share four crucial tips that I wish I had known during those formative years. Stick around, and I’ll throw in a bonus tip that might just reshape your perspective on navigating adulthood!

Mastering Finances and Self-Discovery: Essential Tips for Your Journey into Adulthood

1. Avoid Debt like the Plague: Stay away from any form of debt as it were the 1300s and debt is the black plague. And by all, I mean all debt. The last thing you need as an 18-year-old with little to no income is a loan or a credit card balance. Especially, with a 25% interest rate and carry that balance till 2035 like 49% of Americans. If you’re reading this, you are already trying to be different and take control of your finances. So don’t do as the rest of the mainstream does. Make cash purchases and only buy things you can pay in full. There’s a whole different mental aspect of swiping a card for $200 or handing over 10 $20 bills.
Build an Emergency Fund: Start some kind of starter emergency fund. If you’re living with your parents, it might be something as simple as $500-$1000. Just to get you into the habit of saving money for later and not fall into the trap of living from paycheck to paycheck like 62% of American’s do. If you are already living on your own then you might need more of a real emergency fund which would equal 3-6 months of expenses. For example, you take the bare minimum that you need to survive which is housing(rent, utilities), transportation(gas, insurance, since were not going to have a car payment), food (basic groceries) take all that into account for the month and multiply by 3-6. And that’s your emergency fund.
Invest in a Roth IRA: At Kurpas Financial we’re BIG on investing. If you have any form of income, open a Roth IRA for yourself I personally use Charles Schwab for mine. This is basically a cheat code for growing your finances. When it comes time to withdraw it at retirement age, you don’t have to give the government a penny of it, because it will be tax free. If you only put away $100 a month into it starting at 18 and wait to withdraw it at retirement at 65, assuming an average of a 10% growth rate (which the S&P500 was done historically) you’d have 1 million TAX FREE! And that’s only investing $100 a month!
Plan Your Career Path: Sit down and try to figure out what you want to do with your life. Figure out what you’re good at and passionate about to figure out a career path for yourself. Then figure out if you want to go to college or not, just because all your friends are going to all these out of state schools you don’t need to follow them. Maybe you’re more of a hands on person and a trade school would be more appropriate for you. At trade school you’d spend 2 year in an apprenticeship and go straight into your career field skipping all those unnecessary student loans that American’s so struggle with.
Invest in Yourself: We’ve already talked about investing into your roth IRA, but really the most important investment you can make at this age is into yourself. That can look like getting and education, learning a trade, reading books on different subjects that interest you. Growing emotionally, spiritually, or getting counseling or therapy from past traumas as we all grew up under different circumstances.

Closing Thoughts: Embrace Your Journey into Adulthood with Confidence and Purpose

As we conclude this journey into financial wisdom, finances, and personal growth, remember that your path to adulthood is uniquely yours. Embrace the lessons, face the challenges, and celebrate the victories. Whether it’s conquering debt, building a robust future, or investing in your personal development, each step forward is a stride toward a fulfilling life.

By kurpasesther, 11 monthsJanuary 31, 2024 ago