greg-reimann

Understanding Beneficial Ownership Interest: What You Need to Know As a Small Business Owner

Tue, 27 Aug 2024 22:37:12 GMT

In response to growing concerns about financial transparency and to combat illegal activities, the government has introduced new regulations that impact many small businesses.

This new law, part of the Corporate Transparency Act, mandates that businesses report the individuals who ultimately own or control the company, even if their names aren’t on official ownership documents.

Who needs to file?

Any company registered in the United States that is not publicly traded may need to file beneficial ownership information. This includes corporations, limited liability companies (LLCs), and similar entities. Any individual with a significant control or a substantial ownership stake in the business, typically defined as 25% or more ownership, must be reported.

When to file

The timing for filing beneficial ownership information depends on your business's status.

For newly registered entities, the filing must be completed at the time of registration.
Existing companies must comply with filing requirements by January 1, 2025

How to file

Businesses are required to submit specific details about each beneficial owner to the Financial Crimes Enforcement Network (FinCEN). This information includes names, birthdates, addresses, and a unique identifying number, such as a Social Security number. Filing is usually done electronically through FinCEN's online portal.

Let us handle it for you

Navigating the filing requirements for beneficial ownership interest can be complex. As your trusted business advisor, we can manage the entire process for you, ensuring that your filings are accurate and submitted on time. Contact us today to discuss how we can assist with your beneficial ownership filing and keep your business compliant with federal regulations.

Summer Internship Program Wrap-Up: Inspiring Future Professionals

Wed, 31 Jul 2024 01:16:40 GMT

This summer, our firm had the pleasure of hosting two high school interns from Iowa City West and Liberty High Schools through a partnership with Kirkwood's Workplace Learning Connection Program.

The goal was to introduce them to the fields of accounting and marketing, providing hands-on experience and insights into these business careers. Over the course of the program, our interns gained valuable skills and a deeper understanding of the industry, exploring whether a future in accounting or marketing might be the right fit for them.

Through a mix of practical assignments and mentorship, they learned about the day-to-day operations of an accounting firm, about the importance of communicating to clients through marketing, and even wrote blogs on bookkeeping and tax planning - check them out!

We were impressed with their curiosity and dedication, and we're excited to see where their career paths take them. It's been a rewarding experience for everyone involved, and we look forward to continuing to inspire the next generation of professionals.

Everything You Need To Know About Tax Planning Strategies

vini26@icstudents.org (Vincent Ni) — Tue, 23 Jul 2024 21:42:47 GMT

Tax planning plays a crucial role in ensuring your financial stability and achieving your long-term goals. You may be a small business, or an individual looking to potentially save money; but by understanding tax planning strategies, you can minimize your tax payments, maximize your savings, and secure a stable financial future. In this blog, we'll explore the importance of tax planning, and key strategies to consider.

Why Tax Planning Matters

Tax planning is more than just numbers, it is a variety of strategies that can significantly impact your financial well-being. With an effective tax planning strategy With an effective tax planning strategy, you can optimize the amount of taxes owed, plan cash flow, and gain a better understanding of your tax liability. Investing time and effort into effective tax planning is an investment in your financial future.

Understanding Tax Planning

Net profit vs revenue

Business owners pay tax on net profits, not gross revenues. Gross revenue is all of the income collected during tax year. While net profit is calculated as gross profits less deductible expenses. Eligible business expenses include but are not limited to, insurance, employee benefits, utilities, advertising, and payroll.

Business Legal Structure

The income tax your business pays is affected by the structure of your business. For example, partnerships and sole proprietorships are both regarded as pass-through entities. That means any income flows to your personal tax return and is taxed at your personal tax rate. C corporations are taxed at a flat 21% corporate tax rate.

Other tax liabilities

You may think this is the end of taxes, but there are many more to consider, including self-employment tax, net investment income tax, pass-through entity tax, and estimated tax payments.

Self-employment Tax

The self-employment tax is a 15.3% tax imposed on individuals who work for themselves. This tax includes Social Security and Medicare taxes which are typically withheld from W-2 pay.

Net Investment Income

Tax: This tax only targets high-income individuals or families, over $200,000 and $250,000 for those married filing jointly. The tax imposes an additional 3.8% tax on investment income such as interest, dividends, capital gains, rental, and royalty income.

Pass-Through Entity Tax

This tax applies to businesses such as partnerships or S corporations. Recently enacted by many states to help circumvent the federal limitation of state and local tax deduction. Pass-through entities pay their owner’s state liability at the entity level, and pass out a credit which the owner claims on their personal state income tax return.

Estimated tax payments

Similar to self-employment tax, individuals who are self-employed are required to pay estimated tax payments to both the IRS and state tax authorities. Because self-employed individuals' income is not subject to tax withholding by an employer, they need to estimate and pay quarterly.

Common Questions About Tax Planning

Why choose Greg Reimann, CPA

With the trusted expert you’ll find at Greg Reinmann, CPA, we’re not just going to help you save money, but we’re going to help you tax plan effectively for the entire life of your business.

We are your trusted business advisor that’s here to bring clarity to your finances so your business can achieve its goals.

To learn more about our services, book a tax planning consultation, contact us today.

The Importance of Bookkeeping Services for Small Business

Fri, 19 Jul 2024 21:27:52 GMT

Every business must keep track of its finances, and bookkeeping does just that!

Good bookkeeping is used for more than just making sound financial decisions. In this blog, we will look into why bookkeeping is important, how it will help your business be healthy financially, and why it is one of the basic means to grow and make money.

Join us as we uncover the basics of bookkeeping and learn why it's the foundation of every successful business.

What is Bookkeeping and Why Does it Matter?

Bookkeeping is the process of recording all the financial transactions of a business. It refers to the record of what has been purchased and sold, and the asset and liability accounts used in preparing complete financial statements.

Knowing financial performance is useful in order to ensure that the inflows or income and where the money is going to is monitored. It's also crucial for adhering to the statutes regulating taxation and principles of financial reporting.

Proper bookkeeping will give you useful data for planning budgets, projecting future costs, and making investments. It helps to build the trust between your business and partners, or even lenders since it shows how the funds have been accounted for. Besides that, bookkeeping safeguards your business by keeping reliable records of transactions and financial responsibilities. Bookkeeping simply makes sure that your business can effectively handle their accounts, remain lawful, and make informed decisions for growth.

How does Bookkeeping help your business?

Bookkeeping is like a detailed journal that records all your transactions. It allows one to clearly see how much profit they are making and where the money gets spent. This is important information to have when making various decisions for your business, such as spending and tax planning. This will also identify errors or omissions early enough to prevent disruption, keeping your business running smooth.

With local bookkeeping, small businesses are provided with the level of personal service and expertise they require. Support is available, tax laws are better understood at local levels, and the services are more affordable. They keep accurate records and give strategic advice to enable these businesses to make appropriate decisions about their financial dealings and support growth. This close partnership builds trust and, in turn, strengthens the local economy.

How will this help you grow your business?

Bookkeeping helps develop small businesses by keeping them organized. Business owners will have the knowledge to make wise decisions regarding the use of money and how to cut unnecessary costs. Bookkeepers also ensure that bills are paid on time, thus providing continuous financial flow for daily transactions and business growth activities. They can also be helpful with taxes, making everything right to avoid hassles. This makes it easy for small businesses to borrow or acquire loans and even invite investors on board when there is a need to expand since the local bookkeepers will have their finances in order.

Common FAQs About Bookkeeping

Local bookkeeping provides customer-specific support to your small business. Local knowledge and affordable rates, coupled with expertise in taxes, allows local bookkeepers to help a business manage its finances properly so it can grow smartly. The choice of 'local' isn't all about numbers; it is being able to create a trusted relationship that works for everyone in the equation. Reconciling your books every month can be a time consuming task. As a business owner, you get to make the choice to do this yourself or confide in others to take the load off of you.

This is where Greg Reimann, CPA comes in. Greg Reimann, CPA is your dedicated accounting partner, specializing in empowering businesses with CFO-level insights and strategic financial guidance with 10+ years of experience to help. Our predictable billing, industry-specific expertise, CPA accreditation, and client-centric communication set us apart from the other firms. We’re your approachable, down-to-earth, local tax experts who are here to bring clarity to your finances so your business can achieve its goals.