New Sage Startup Insights

🚨 Important Deadline Alert for Business Owners! 🚨 💡 Are you aware of the upcoming Beneficial Ownership Information (BOI) report deadline that is due on January 1, 2025 for existing businesses? As a part of the Corporate Transparency Act aimed at preventing financial crimes, majority of businesses are required to file the report or face hefty fines and possible prosecution for non-compliance. Just the late fees can be, according to FINCEN site, $591 each day the report is late. Here are the timeframes that the business is expected to file the report: 💡 Companies created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report. 💡 Companies created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. 💡 Companies created or registered on or after January 1, 2025, will have 30 calendar days from company’s creation or registration to file its initial BOI report. It is free to file on your own and is fairly uncomplicated. #BusinessCompliance #CorporateTransparency #BOIReport #SmallBusinessTips

📊 ROBS (Rollover As Business Startup): A Strategic Financing Option for Entrepreneurs 🚀 Most startups struggle with financing, typically relying on bootstrapping, family support, personal loans, and credit cards. ROBS offers an alternative pathway to business funding. What is ROBS? It's a program allowing entrepreneurs to use retirement funds to purchase shares in their own startup or purchase a business, without tax penalties. This isn't a 401(k) loan, this method provides direct investment into your venture. The IRS permits entrepreneurs to finance business ventures using retirement accounts tax-free, subject to specific conditions and compliance requirements. ✅ Benefits: ▪️ No debt financing ▪️ Tax-free investment ▪️ Direct equity in your company 💡 Requirements: ▪️ Retirement funds must be from a non-current employer account ▪️ Cannot be a ROTH IRA ▪️ Must be an active business, not for passive investment so you have to work at the corporation you've invested in ▪️ Not for the type of business that may be legal in certain states but not on the federal level ▪️ Requires creating a C-Corporation as it must issue stock that you will be buying with your retirement funds ▪️ Mandates ongoing financial reporting, and operational and tax compliance ⚙️ Process: ▪️ Establish a C-Corporation. Other entity structures don't allow a Qualified Employer Securities (QES) transaction ▪️ Create a qualifying retirement account, you choose the plan ▪️ Roll over existing retirement funds into the new retirement plan ▪️ Purchase company stock via QES transaction ▪️ Maintain strict regulatory compliance 🔆 Caution: This isn't a simple or risk-free process, make sure to understand the following: ▪️ Complex process ▪️ Risk of losing retirement savings ▪️ Requires professional guidance ▪️ You can do this on your own but given the complexity of the process from beginning and ongoing, it's advisable to consider a 3rd party if you can't devote the necessary time ▪️ Permanent corporate structure commitment, can't change to a different entity structure ▪️ Take into consideration the associated costs, tax free doesn't mean no cost: Keep in mind maintaining C-corp with corporate and personal income tax obligations, as well as ROBS process, set up, and ongoing administrative fees if you choose another company to manage the continuing compliance #Entrepreneurship #StartupFunding #ROBS #BusinessFinancing

Whether you're a startup or not, these accounts may be useful to you in two ways: providing you with another resource to manage your cash flow and to build your business credit. Most vendor credit accounts have terms of 7, 10, 15, or 30 days. Please review each vendor's terms carefully as their requirements vary and you may find that some meet your needs better than others. Check with their customer services to stay updated on which bureaus they update and how often they report, to ensure you get the most out of them. Some vendors report to one or two bureaus and some report to all three. They may report on a monthly or quarterly basis. Some will report only when a qualifying amount has been charged to the account which can be a minimum of $40 and up. Vendors frequently change their reporting policies and do not notify their customers so it's a good idea to get those updates by contacting them directly. Here are some to consider: -Uline -Maverick Office Supplies -Gulf Fleet -Amazon -The CEO Creative -OfficeDepot/OfficeMax -Phillips 66-Conoco 76 -ABC Supply -The Home Depot -WEX Fleet -Lowe's -Grainger -Shell -BREX -7/11 -Pilot -Marathon -A to B -Cabelas -Wayfair For any business, every little way that can boost growth and establish credit helps, not even more so for those just starting and working within very tight budgets. #startup #startuplife #entrepreneur #businessfinancing

Happy Independence Day from your team at New Sage Funding! We wish you and your families a happy and safe holiday!

Starting a business is often a learning curve and that includes options for financing it. Here are some myths

Exciting news from the SBA for Women Owned Businesses. New Grant program roll-out with a 30M budget to boost development services in areas that have been socially and economically disadvantaged. Eligibility requirements as outlined in the SBA announcement: (from SBA https://lnkd.in/g2iM-Vpj ) Eligible non-profit organizations that are selected will be awarded up to $150,000 to open and operate a WBC. The four funding opportunities include: Funding to support women business owners in government contracting, specifically to assist them with application readiness for certification in the Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) Programs, procurement assistance, and entrepreneurial development. Funding to provide entrepreneurial development services to women-owned small businesses focused on providing child care services. Funding to provide general entrepreneurial development services to women, with an emphasis on socially and economically disadvantaged entrepreneurs in locations outside of the geographical areas of existing WBCs within the United States and its territories and the option to provide mostly or entirely virtual services. Funding to support the opening of a WBC in the U.S. Virgin Islands.

Taking a look at the financing option that is great for all businesses but invaluable to startups #startup #smallbusiness #newbusiness #businessgrowth #businessfinancing

Remember those who fought for our freedom. #memorialday

0% Financing up to 24 Months. Yes, it exists and it’s a great option for Startups struggling to access financing. Without a doubt, you've seen this and wondered if that is possible and what one would require to access it. The good news is it exists, is easier to get than other financing, and is one of the cheapest financing options available to businesses. Our clients range from those with years and high revenues under their belt, as well as startups and companies with revenues that don't fit into traditional business lending requirements. This financing is an aggregate of business credit cards with an introductory rate of 0% for a period of up to 24 months, which makes it the cheapest form of financing, especially if your need is on an ongoing basis. Similar to a Line of Credit, you pay only on the amount that you use but for the period of 0%, all the payments made go to the principal balance without any financing fees. If you pay off your balances before the typical rates take effect, you've essentially borrowed money interest-free for the same term that you would pay financing costs if you were to take out a loan. Aggregate credit line funds can be used for expansion, equipment, advertising, and almost any other business expense. In addition to accessing financing to cover your business expenses, you also quickly establish and build a company's credit profile and reduce the exposure to the owner’s personal credit. #startup #startupfinancing

How can a new business get funding before they qualify for business loans? There is an option and even better, it's a 0% financing for up to 24 months. Many established businesses use this because even with the best rates and high revenues, this is still the cheapest than other business financing that comes with closing fees and interest rates for the duration of the term which is at least 8.5% (current prime). What could you achieve with a $100K + in 0%financing for the next year or two, and simultaneously build business credit? Ask us how you can use this for your business!