Hey everyone, Constance Carter here, excited to talk to you all about some pretty critical stuff that's going on with our businesses. With new regulations for LLCs starting in 2024, we've got a lot to cover, so let's dive right in. Starting January 1st, there's going to be a fine of $500 per day if we're not in compliance with these changes. Now, that's some serious money! But don't worry, there's help available. I learned about this site, ctacompliancenow.com, which is a new portal that's been set up to help us out with the whole compliance process. It's got all these questions to help us understand what we need to report and how to navigate through it all. This is crucial because if we slip up and aren't compliant, we could be risking audits, and nobody wants that headache. I should mention, though, we don't necessarily need to have an LLC to run a business. There are tax benefits to having one, but it's not mandatory. Now, let's talk about the Biden administration. They've been busy with the Patriot Act and the FOIA Act, and let me tell you, it's pretty concerning, especially for folks in legal and Social Security fields. Back to the portal I mentioned earlier – it's all about personal and business information for staying on the right side of these new rules, and it's pretty straightforward to use. I've got to give a shout out to my friend Elaine, who's really passionate about helping our community with these changes. She discovered them by keeping an eye on the Federal Register. The sad part is, not many people know about this, and it could have a big impact on black wealth. The clock's ticking with only a 30-day window to get compliant after the new year starts, and the fines... yeah, we already talked about how steep they are. So, the government's rolling out the Corporate Transparency Act, and it's all about sunshine and transparency. If our LLCs are playing with less than $5 million in gross receipts, we might get some relief with exemptions. But here's the thing, states like Delaware and Nevada, that used to keep LLC owner info under wraps? Not anymore. The government wants the details out in the open now. I'm not going to lie, it feels like an invasion of privacy and just another way to control us, hitting minority-owned small businesses the hardest. We've got to take steps to protect our LLCs from this, and it's not going to be easy. Down here in Atlanta, where I'm based, we need to step up our game with our black-owned businesses – making sure they're operating smoothly and staying compliant is key. And Elaine, she's been a rockstar supporting this need for conversation and stressing how crucial compliance is, especially if we're looking for financial help down the line. These changes, they're not just for sole proprietors; they affect all kinds of business entities. The potential financial impact is real, and that's why I'm emphasizing taking action pronto. We discussed the importance of setting up our businesses right, as a sole proprietor or otherwise, to snag those tax advantages and corporate defenses. There's this collective faith we have in the growth of black wealth, and building a strong foundation for our businesses is part of that. It's all about complying, scaling, and tapping into free info to boost our economic power. Elaine's even offering to help with compliance questions over on her Insta or email.
And me? I'm on a mission with the Net Seven Collective – we're all about supporting black women to increase their net worth. We've got a goal: boosting that net worth by a million dollars. And hey, it's not just us – certain industries get a pass from reporting if they're already under the watchful eyes of SEC or FINRA and they're doing good business over that $5 million marker. Legal and financial advisors? They might find some wiggle room in these new rules. But honestly, we've got to consider the gains and purpose of having an LLC at this point – maybe it's best to dissolve it or just play by the rules. What matters most is that we're running our businesses on the up and up, to safeguard our personal liability and keep our finances clean as a whistle. Tight compliance, proper reporting, it's all about laying a strong base for our businesses to thrive and for wealth to flow down the generations. If you're curious about the Net Seven Collective, it's got folks from all walks of life – new entrepreneurs to Harvard PhDs, young guns to seasoned pros, and all coming from diverse backgrounds. For my black women out there, come join us in the Net Seven Collective. There are spots open in the next cohort, and together, we'll work towards closing that wealth gap. Elaine's all about spreading the word, educating folks so they can meet these regulations without breaking a sweat or the bank. We're both thankful for our community, the resources at our fingertips, and we're looking forward to fostering growth and love among our peeps. Before I sign off, just want to remind you, I'm here for you on all things financial literacy, wealth building, and staying sharp with government regs. Hit me up in the comments, don't forget to subscribe to the channel and follow my other socials. And remember, keeping on top of things like the details of the new bill, is crucial to avoiding any unnecessary fees come January. Till next time, stay informed, and let's keep building that