A Certificate of Beneficial Ownership (CBO) form is a document required by financial institutions in which a legal entity discloses information and the identities of individuals considered to be beneficial owners? of the business. It is commonly used when obtaining financing and opening business bank accounts. It’s deemed necessary by the Financial Crimes Enforcement Network…
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What is Workforce Development?
Learn about workforce development and how it can help your small business remain agile in the face of competition and a changing economy.
Workforce development definition Workforce development is all about helping employees improve their skills, education, and overall capabilities to meet the evolving demands of the job market. For small businesses like yours, this means providing current employees and jobseekers access to practical training, upskilling programs, certifications, and mentorship opportunities that can help your team grow and…
What Is an LLC Loan and How to Get One
An LLC loan is any type of small business loan issued to a business structured as a Limited Liability Corporation (LLC). An LLC is one of several legal tax structures a business can operate as, with examples of other options including sole proprietorships, partnerships, and S corporations. LLC loans can be used for many different…
When to Deduct Business Credit Card Payments for Taxes
The deductibility of business credit card payments depends on what kind of credit card charges the payments are covering. If only some of the credit card charges are deductible, then only the portion of the payment relating to the deductible expenses can be included on the tax return. The IRS lets you deduct “ordinary and…
What Is FinCEN and How Does It Protect Business Accounts?
The Financial Crimes Enforcement Network (FinCEN) is a bureau that operates within the US Department of the Treasury (USDT) under the Secretary for Terrorism and Financial Intelligence. FinCEN safeguards and monitors the flow of money within the US and internationally. It collects and analyzes transactions from financial institutions and shares all criminal findings with law…
10 Common Elements of a Business Loan Agreement
A business loan agreement has many elements that outline the various terms and conditions associated with getting a loan — including the loan amount, the interest rate, the repayment schedule, penalties, covenants, and dates. Understanding each of these can help you outline the terms and conditions of your transaction and supply you with the knowledge…
What Are Retained Earnings in Accounting & How To Calculate?
Retained earnings (RE) are the total profits a company has kept over time instead of paying them out to shareholders. These funds are either reinvested in the business or reserved for future needs. RE are commonly associated with businesses structured as corporations or LLCs, whereas sole proprietorships and partnerships generally do not maintain a retained…
What Is an Applicable Federal Rate (AFR)?
An applicable federal rate, also commonly known as an “AFR,” is the minimum interest rate required of a private loan. It is enforced and designated by the IRS and applies to loans with an interest rate lower than the tax rate if the loan is considered income. There are differing AFRs assigned to various loan…