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Main Street Monthly 905 Old Cherokee Road, Lexington, SC 29072 • P: 803-358-7214 • www.strattonreynolds.com
MAY/JUNE 2024
SMALL BUSINESSES AND THE NEW CORPORATE TRANSPARENCY ACT What You Need to Know
If you’re a small-business owner, you’ve probably been enjoying the privacy and simplicity that owning a small company affords you. (I mean, who will really notice if you take a half-day on Friday or forget to have an annual shareholders’ meeting?) Aside from the flexible vacation you get as the owner, holding your business privately means you can keep a level of anonymity in your business dealings, such as holding real estate or other investments in the name of your business and keeping your personal assets separate from your business in the event either you or the business are sued. But this year, small businesses lost some of that privacy. Beginning Jan. 1, the Corporate Transparency Act now requires small businesses to file a report on the majority owners of the business, and failing to file the report comes with real consequences. So, what exactly does this mean for you and your business? Keep reading to learn more. What is the purpose of the Corporate Transparency Act and what does it require? The Corporate Transparency Act was created to help the federal government combat money laundering schemes and
terrorism financing efforts through “shell” corporations — companies that don’t actually perform an active business or trade. Under the Corporate Transparency Act, small companies will now be required to disclose the names of any owners who own 25% or more of the company and any members of the company who have “substantial control” over the company’s activities. By documenting the owners of small companies, the government hopes to better identify shell corporations involved in money laundering. Most money laundering happens through small companies rather than large corporations. In order to comply, a business must file an annual report with the following information on each owner or controller of the business to the Financial Crimes Enforcement Network (FinCEN): • Business name • Current business address • State in which the business was formed and its Entity Identification Number (EIN) • Owner/controller’s name, birth date, and address
• Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company Failing to file an annual report could result in serious repercussions, from paying a fine of $500 for every day the report is late up to imprisonment for two years. These reports are due by the end of 2024 for businesses formed prior to 2024, within 90 days for companies formed this year, and within 30 days for businesses filed in 2025 and beyond. An updated report must be filed if there is any change in the owners or members who have substantial control after the initial filing. Do all businesses need to comply? The Corporate Transparency Act is broadly written, so almost every small business will be required to comply with the new reporting rules — but not all.
We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.
Let’s break it down …
The new rule applies to any company created by filing a formation document with Continued on Page 3 ...
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Exhilarating Backyard Competition
3 NOVEL GAMES FOR OUTDOOR FUN
Ladder Toss You play this game with 2–4 people split between two teams, each team with its own three-rung ladder set 15 feet apart. Teams take turns tossing their bolas (two balls connected by a nylon rope) underhanded, earning points for bolas that wrap around a rung of the opposing team’s ladder. The higher the rung your bola wraps around, the more points you get. The first team to reach 21 points wins! Jenga Giant This is the classic game of Jenga made giant ! In Jenga Giant, two players take turns pulling wood blocks from a tower standing about 5 feet tall. Over time, the blocks become crucial to the tower’s integrity, and each pull is a gravity- defying feat. If your pull causes the tower to collapse, you are out, and your opponent has to yell “Jenga!” at the top of their lungs.
While board game nights can be fun, nothing beats playing outside in this lovely weather! Lawn games have evolved past playing horseshoes in an overgrown field. What about Jenga Giant, Ladder Toss, or Flickin’ Chicken? You’ll want to try these three family-friendly games with family and friends. Here’s how to play. Flickin’ Chicken You can’t have a backyard party without a game of Flickin’ Chicken. No, this is not a menu item at a fast food restaurant — it’s a game of skill and daring played between 2–4 capable challengers. Each player chooses one of four uniquely colored Flickin’ Chickens, which they will use for the remainder of the game. In each of the nine rounds, one player throws the target disc as far as possible. Then, the goal of the game is to toss your chicken onto the target disc in the fewest number of throws possible. After the last round, the player with the lowest score is the victor.
It is that time of year again. Many of our clients have children and grandchildren graduating from high school. While this is a wonderful and exciting time as these young adults look toward their future, what many parents and grandparents don’t consider is that these children are now legally considered adults. That means that parents no longer have the right to, for example, access their child’s health care information due to HIPAA laws. But what if your child gets into an accident or has an emergency while they are off at college or on the job? If they are not able to give consent, parents often cannot even get information or talk to doctors without going through lengthy and expensive guardianship and/or conservatorship proceedings through the local probate court. Because of this, we highly recommend that anyone over the age of 18 gets a Health Care Power of Attorney and a Financial Power of Attorney. We can help young adults get these important documents in place before they head off to the next chapter of their lives. If you have someone in the family who has recently turned 18 and may still want you to help make decisions if it becomes necessary, give us a call to schedule an appointment today! Powers of Attorney for Children in College
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TAKE A BREAK!
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the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs). Nonprofits, publicly traded companies, and regulated companies like banks and investment advisors are exempt from the rule. Large companies are also exempt if they have 20 or more full-time employees in the U.S. and generate $5 million in sales. And if you have an LLC or corporation, which you created but aren’t actively using to run a business, that company is also exempt due to its inactivity as long as it does not own any assets.
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Delightful Banana Bread
We are your partner for staying in the loop. Being a small-business owner is incredibly rewarding, but it can also be difficult to stay on top of reporting requirements and other changes in the law because you don’t have the manpower or the time to keep track of everything. That’s where we come in. We help businesses stay current on their requirements and ensure their company has everything it needs for real success, from a strong foundation to a plan for sustainable growth, no matter what stage it is in. If you aren’t sure if your company is required by the Corporate Transparency Act to file an annual report, give me a call. I’d be happy to review your situation and learn more about your business vision. For a limited time, we are offering clients who want help filing these reports a flat fee of $250 per filing. If you want to ensure your business’s long-term success, ask me about my LIFT™ Business Breakthrough Session. In this session, I can conduct an in-depth review of your Legal, Insurance, Financial, and Tax systems. Clients hiring us for this process also receive their Corporate Transparency Act filings at no additional cost.
INGREDIENTS
• 2 cups all-purpose flour • 1 tsp baking powder • 1 tsp baking soda • 1/4 tsp salt • 1/2 cup butter, softened • 1 cup granulated sugar
• 2 large eggs • 2 cups mashed ripe bananas • 1/2 cup chopped walnuts (optional)
DIRECTIONS
1. Preheat oven to 350 F and grease a 9x5-inch loaf pan. 2. Combine flour, baking powder, baking soda, and salt in a medium bowl. 3. In a large bowl, beat butter and sugar until light and fluffy. 4. Add eggs and mashed bananas and mix until blended. 5. Gradually add dry ingredients to wet ingredients, stirring until blended. 6. Stir in walnuts. 7. Pour batter into prepared pan. 8. Bake for 65–70 minutes or until a toothpick inserted into the center comes out clean. Let cool before serving.
Call us today to schedule a time to get started.
–TC
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905 Old Cherokee Road Lexington, SC 29072
Inside this Issue
What You Need to Know About the New Corporate Transparency Act PAGE 1
3 Must-Try Lawn Games PAGE 2
Powers of Attorney for Children in College PAGE 2
Delightful Banana Bread PAGE 3
Perfect Spots for a Laid-Back Holiday PAGE 4
Hidden Gem Vacation Destinations OFF THE RADAR
Pinnacles National Park Make an excursion to Pinnacles in California to enjoy the splendor of nature without having to share space with millions of tourists. With over 30 miles of hiking trails crisscrossing rocky hills and river-strewn caverns, you’ll find plenty of opportunities for memorable adventure. Despite its wondrous views, Pinnacles was named the 15th least- visited national park in 2023, with just over 340,000 annual visitors. Crater Lake National Park Make your way to Oregon and dive into the deepest lake in the country! Crater Lake National Park’s namesake was formed when a volcanic eruption triggered a mountain to come apart in spectacular fashion. You can stay at plenty of campsites and find excellent
fishing in the lake’s pristine and seemingly bottomless water. If you are a fan of hiking, fishing, or breathtaking views, then Crater Lake is for you. Crater of Diamonds State Park If you have ever felt envious of the prospectors who made their riches during the California Gold Rush, then pay a visit to Crater of Diamonds State Park in Arkansas, where you can discover your own hidden gems! You can discover rare rocks and minerals in a massive field birthed by volcanic activity, including diamonds, amethysts, garnets, and quartz. The best part? Anything you find, you can keep! Seekers have found more than 35,000 diamonds at the park since it opened in 1972, and with some luck, you could add a few more to that tally!
Are you tired of visiting hyped-up vacation destinations or getting lost in a big city or crowded national park? If so, consider a holiday at a less congested, more laid-back locale. These hidden gems offer beautiful views and exciting excursions — all without the headaches that come with vacationing to big-name destinations!
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