U.S. compliance for low-income entrepreneurs

For low-income entrepreneurs, navigating U.S. business compliance is essential. Key federal obligations include obtaining an Employer Identification Number (EIN), managing income and self-employment taxes, and understanding payroll taxes if hiring. A critical new requirement is the FinCEN Beneficial Ownership Information (BOI) report, with deadlines depending on your company's creation date (e.g., January 1, 2025, for companies formed before 2024; 90 days for those formed in 2024). State-level compliance involves business registration, annual reports, potential franchise taxes, and sales & use tax. To ease the burden, numerous free or low-cost resources are available: Small Business Development Centers (SBDCs), SCORE mentors, and SBA resource partners offer counseling. Microlenders, local Community Development Financial Institutions (CDFIs), and microgrant programs provide financial assistance. For tax disputes or legal help, Low Income Taxpayer Clinics (LITC) and pro bono legal aid are valuable. Consider starting as a sole proprietor to minimize initial costs. While state fee waivers are rare, local relief funds and microloan programs exist. Missing filings can lead to penalties and personal liability. The newsletter will provide a concise overview, federal and state compliance highlights, low-cost strategies, and an actionable 30-day checklist to guide entrepreneurs through initial steps and resource discovery.