February Newsletter
Business Ownership Information on Hold…. AGAIN!
The recent announcement that the Beneficial Ownership Information (BOI) filing process is on hold—again—has undoubtedly caused confusion and concern among business owners and stakeholders. Originally introduced to promote greater transparency and curb illicit financial activities, the BOI requirement has encountered multiple delays in implementation. Each postponement adds uncertainty for those aiming to stay compliant but unsure of how to proceed. Although the exact timeline for reopening the filing system remains unclear, it’s crucial for companies to stay alert to any official updates from the relevant authorities.
During this hold period, businesses should use the downtime strategically. If you have not yet gathered your necessary documents or verified your company’s ownership structure, now is an excellent time to do so. Consolidating corporate records, clarifying ownership percentages, and ensuring all relevant information—such as organizational charts and identifying details for beneficial owners—is accurate will make the filing process smoother once the requirement is reinstated. Staying organized and prepared will help you avoid a last-minute scramble whenever the system reopens.
Despite the current hold, Simple Bookkeeping (SBS) recommends that businesses continue with the FinCEN application process, enabling SBS to complete BOI filings until there is a definitive decision on whether the government will fully discontinue the program. If the program ultimately ends, filing early poses no risk. However, if it continues, there is no guarantee that grace will be granted to those who are late or delinquent. Being proactive now ensures you remain in compliance, no matter the outcome.
Building Business Credit 101: Why It Matters and How to Get Started
Business credit is a way for a company to build its own financial identity separate from the owner’s personal credit. By establishing a strong business credit profile, a company can unlock better financing opportunities, secure favorable terms from suppliers, and shield the owner’s personal finances. Commercial credit bureaus (such as Dun & Bradstreet, Experian Business, and Equifax Business) track payment history, credit utilization, and the length of credit history to determine a business credit score.
Why Business Credit Is Important
Access to Better Financing: Qualify for larger loans, lower interest rates, and fewer personal guarantees.
Enhanced Credibility: Show lenders, suppliers, and partners that your business is financially stable.
Protection of Personal Assets: Avoid tying your personal credit to business obligations.
Growth Potential: Use credit to invest in equipment, staffing, or new initiatives as the business expands.
How to Start Building Business Credit
Form a Legal Entity
Create an LLC or corporation.
Obtain an Employer Identification Number (EIN).
Open Business Accounts
Set up a dedicated business checking account.
Get a business credit card to separate transactions from personal finances.
Work with Reporting Vendors
Pay bills on time (or early) to vendors who report payment history to credit bureaus.
Maintain a record of consistent on-time payments to establish a positive credit history.
Monitor and Maintain
Check your business credit reports regularly for errors or inconsistencies.
Keep credit utilization low to showcase responsible borrowing.
Building strong business credit is more than a financial tactic—it’s a cornerstone of long-term success. By separating personal and business finances, you safeguard your personal assets while positioning your company for better interest rates, more flexible payment terms, and expanded growth opportunities. With the right steps—like forming a legal business entity, opening dedicated business accounts, partnering with vendors that report to credit bureaus, and maintaining a healthy payment track record—you can establish a credit profile that benefits your organization for years to come. Ultimately, investing time and effort into building solid business credit puts you on the path to stability, resilience, and enduring prosperity in a competitive market.
