The Holiday Rush Looks Different for Every Small Business. Is Yours Ready?

Walk into a big-box store in early October and you may find Halloween decorations in one aisle and Christmas trees already going up in the next.

It can feel a little early, especially when you’re still thinking about fall. But it’s a reminder that holiday planning begins long before December—and your customers may be planning earlier than you realize.

For a small business, preparing doesn’t necessarily mean putting up decorations or launching a sale. It might mean ordering products before suppliers get busy, filling your appointment calendar, or getting ready for clients who want projects finished before year-end.

And not every business gets busier. Some owners see requests slow down as customers focus on the holidays and push decisions into January.

The holiday rush looks different for every business. The key is to start thinking about what it looks like for yours before it arrives.

At a Glance

• Product businesses: Review inventory, suppliers, shipping timelines, and order capacity early.
• Service businesses: Check your calendar and let customers know when they need to book.
• Professional businesses: Prepare for year-end deadlines, client requests, and time away.
• Side businesses: Make a plan that fits around your job, family, and holiday commitments.
• Every business: Keep an eye on cash flow and prepare for what happens after the busy season.

The Holiday Season Isn’t Just for Retailers

When people talk about the holiday rush, it’s easy to picture crowded stores and delivery trucks. But seasonal pressure reaches far beyond retail.

A homeowner may want a project finished before relatives arrive. A restaurant may be booking holiday parties. A photographer may be scheduling family portraits. A consultant may have clients trying to finish projects before the end of the year.

Meanwhile, some businesses experience a slowdown. A service provider may find that customers put off nonurgent work, or a business-to-business company may wait longer for decisions while clients take time off.

Type of business	What the season might bring	What to consider now
Retailer or online seller	Early shoppers, more orders, and shipping questions	Inventory, supplier lead times, packaging, and delivery expectations
Home service provider	Customers requesting work before guests arrive	Appointment availability, supplies, and realistic completion dates
Restaurant, caterer, or event business	Holiday gatherings and larger bookings	Staffing, reservations, menus, and order deadlines
Professional service provider	Year-end projects or clients delaying decisions	Client deadlines, availability, and follow-up plans
Side business or sole proprietor	Extra orders alongside other commitments	Available hours, workload limits, and customer communication
Seasonal or slower business	Fewer bookings or a quieter start to winter	Cash reserves, expenses, and opportunities to plan for January

Your business may fit more than one category. The point is to identify the changes you’re likely to face and prepare for them.

Start With What Happened Last Year

If you’ve been in business through a holiday season before, you already have a useful starting point: your own experience.

Look back at your sales, appointments, invoices, and customer messages. When did things start getting busy? Which products or services were in demand? Were there weeks when business slowed down?

Also think about what caught you off guard. Perhaps you ran out of a popular item, took on too many appointments, or spent January waiting for payments to come in.

If this is your first holiday season in business, you won’t have your own history to rely on. Instead, ask suppliers about their lead times, talk with other business owners, and think about how your customers’ routines might change.

Pro tip: Don’t assume this year will be a repeat of last year. Use what you learned as a guide, then adjust for changes in your business, suppliers, and customers.

Make Sure You Can Deliver What You Promise

A busy season can be exciting. It can also lead to promises that are difficult to keep.

Before you promote a product or accept another project, take a realistic look at what you can deliver. Consider:

• How many orders or appointments you can handle each week
• Whether your suppliers can provide what you need on time
• How long it takes to complete, package, or deliver your work
• Whether you or your employees will be taking time off
• What you’ll do if a customer makes a last-minute request

For a product business, that may mean ordering popular items earlier and setting clear shipping expectations. For a service business, it may mean deciding how many appointments you can complete before a holiday deadline.

A real-world example

Imagine you own a small home services business. In early November, your calendar starts filling with customers who want projects completed before Thanksgiving.

Rather than continuing to promise every job will be finished in time, you review the schedule, account for supplies and unexpected delays, and give new customers realistic dates. Some may choose to book after the holiday. Others may appreciate knowing where they stand.

That conversation can protect both your reputation and your schedule.

Let Customers Know What to Expect

Customers can’t plan around your availability if they don’t know it.

Share important dates early, especially if your business will have limited hours or deadlines for orders and appointments. Depending on your business, you might communicate:

• The last recommended date to order for a holiday delivery
• When your calendar is full for pre-holiday appointments
• Your holiday hours or planned closures
• How long it may take to respond to messages
• When work or deliveries will resume after a break

Post updates where customers already find you: your website, email newsletter, social media pages, booking system, or storefront.

If you sell products, be careful about promising an arrival date you can’t control. Shipping carriers and suppliers may experience delays, so explain your ordering deadlines and any delivery limitations clearly.

Key takeaway: A clear expectation set early is often easier than a disappointed customer later.

Check Your Systems Before Things Get Busy

You don’t need a complicated technology upgrade to prepare for the holidays. But the tools you already use should make it easy for customers to do business with you.

Take a few minutes to check the basics:

• Can customers find your current hours and contact information?
• Does your online booking system show accurate availability?
• Can customers easily place an order or request a quote?
• Are your payment links, checkout process, and invoices working?
• Do you have a simple way to track orders, appointments, and follow-ups?

If you’re a one-person business, even a shared calendar, spreadsheet, or written checklist can make a difference. The goal is to avoid losing track of customers when things get hectic.

More Business Should Still Be Good Business

A full calendar or a spike in orders can look like a great holiday season. But more sales don’t automatically mean more profit.

Extra expenses can add up: rush shipping, packaging, overtime, temporary help, supplies, or discounts. Service businesses may also spend more time than expected on urgent requests or projects that run over schedule.

Before offering a promotion or accepting a large last-minute job, consider what it will cost you to deliver.

For example, if a product sells for $100 and your total cost to provide it is $70, you have $30 left before other business expenses. A 20% discount reduces the selling price to $80 and leaves $10 before those expenses.

That doesn’t mean you should never offer a discount. It means you should know what the discount does to your numbers before you do.

Pro tip: You don’t have to compete with every big-box promotion. Good service, convenience, expertise, and a personal touch can give customers reasons to choose a small business.

Prepare for the Slowdown, Too

For some owners, the hardest part of the holiday season comes after it ends.

A business that sees strong November and December sales may experience a quieter January. Other businesses may slow down before the holidays as customers postpone purchases or projects.

Looking ahead can help you avoid treating a temporary surge as money that will keep coming in at the same pace.

Consider:

• Setting aside money for upcoming expenses and tax obligations
• Following up on outstanding invoices
• Reviewing recurring subscriptions and other overhead
• Planning January promotions, appointments, or client outreach
• Keeping a list of customers who may need your services again

If business typically slows during the holidays, the quieter period may also be a chance to update your website, organize records, review your pricing, or plan for the new year.

A 15-Minute Holiday Readiness Check

You don’t need to solve everything today. Set aside 15 minutes and write down the answers to these questions:

1. When does my holiday season actually begin?
   Think about when customers start ordering, booking, or making year-end requests.
2. What do customers usually need from me?
   Look for your most popular products, services, and recurring requests.
3. What could slow me down?
   Consider inventory, supplier lead times, staffing, available hours, and delivery schedules.
4. What dates do customers need to know?
   Identify order deadlines, appointment cutoffs, closures, and response times.
5. How much work can I realistically take on?
   Review your calendar and decide where your limits are.
6. What will happen to cash flow after the holidays?
   Look ahead to January expenses, expected income, and outstanding invoices.
7. What’s one thing I can do this week to prepare?
   Place an order, update your hours, contact a supplier, or reach out to customers.

A short check-in now can reveal the one or two things that need your attention before the season picks up.

Frequently Asked Questions

When should a small business start preparing for the holidays?

It depends on the business. Product sellers may need to plan around supplier lead times and early shoppers, while service providers may need to review appointment availability and year-end deadlines. Start early enough to address the things you can control before customers need them.

Do service businesses need a holiday plan?

Yes. Service businesses can experience seasonal changes just like retailers. Some receive more requests before the holidays, while others slow down. A plan can help you manage availability, communicate with customers, and prepare for changes in cash flow.

What if my business usually slows down during the holidays?

Plan for the slowdown by reviewing upcoming expenses, following up on invoices, and considering ways to reconnect with customers after the holidays. A quieter period can also be a useful time to organize your business and prepare for January.

Should my small business offer holiday discounts?

Only if the promotion makes sense for your business. Before offering a discount, calculate how it affects your profit and whether you can handle the additional demand. Other ways to attract customers include convenient scheduling, helpful service, gift options, or clear communication.

How can a side business prepare for a busy season?

Start with the time you actually have available. Review your work schedule and personal commitments, set a limit on orders or appointments, and communicate deadlines early. It’s better to accept a manageable workload than to overpromise.

The Best Time to Prepare Is Before You Need To

The big-box stores may be putting out Christmas trees while you’re still shopping for Halloween candy, but they understand something every business owner can use: the season doesn’t wait until December to begin.

Your holiday plan doesn’t need to look like theirs. It needs to fit your customers, your schedule, and the way your business operates.

Whether you’re preparing for a rush, a slowdown, or something in between, a little planning now can help you finish the year with fewer surprises—and start the next one on stronger footing.

What Happens When a Business Partnership Ends? Joe Buck and Troy Aikman Face an Uncertain Future.

A familiar broadcasting duo raises a question small-business owners should ask: What happens when two people stop moving toward the same future?

The headlines surrounding Joe Buck and Troy Aikman have put the future of a familiar broadcasting partnership in question.

Reuters reported that Aikman expects to become a free agent after the season, while Buck has signed an extension with ESPN. Reports of tension have fueled speculation about their future together, but a completed split should not be treated as confirmed. www.reuters.com

Their situation involves broadcasting colleagues with separate employment contracts. For people who jointly own a business, separating introduces another set of questions.

Who keeps the company? What is an owner’s share worth? Who takes responsibility for outstanding debts? Can either person continue serving the same customers?

Even when both owners agree that it is time to separate, agreeing on how can be difficult.

A partnership can reach its end before the business does. The process is deciding what happens to both.

At a glance: What happens when business partners separate?

The available options depend on the business structure, governing agreements, financial circumstances, and applicable state law.

Common paths include:

• One owner buying the other’s ownership interest.
• An approved sale of an ownership interest to someone else.
• Selling the entire business.
• Negotiating a different ownership or management arrangement.
• Winding down and dissolving the company.

Before moving forward, owners need to understand their rights, establish the company’s financial position, and determine how operations and obligations will be handled during the transition.

Throughout this article, “business partners” refers broadly to co-owners. The legal rules differ for partnerships, LLCs, and corporations.

1. Start with the agreement that governs the business

The first step is reviewing the documents that define the relationship between the owners.

For an LLC, that generally includes the operating agreement. A partnership may have a partnership agreement. A corporation may have shareholder agreements, bylaws, and separate buy-sell provisions.

These documents may address:

Issue	What to look for
Departure	Required notice and events that trigger an exit process
Ownership transfers	Restrictions, approvals, and purchase rights
Valuation	A formula, appraisal process, or other method
Buyout payments	Timing, financing, and conditions
Decision-making	Voting requirements and authority
Disagreements	Mediation, arbitration, or other dispute procedures

The SBA identifies ownership, voting rights, management duties, and buyout provisions among the subjects an LLC operating agreement can address. SBA: Basic Information About Operating Agreements

An agreement may provide a clear path. It may also leave important questions unanswered. Where documents are missing or silent, applicable state law becomes especially important.

Wanting to leave does not automatically establish a right to an immediate buyout at a price the departing owner chooses.

2. Decide how the business will operate during the separation

A disagreement between owners does not pause payroll, customer commitments, rent, or loan payments.

Before negotiating the final outcome, establish how essential decisions will be made.

That may include an interim arrangement covering spending approvals, customer communication, access to financial records, and responsibility for ongoing work.

Owners should seek legal guidance before changing account access, moving company funds, redirecting customers, or making commitments outside their authority. Actions taken during a dispute can affect both the business and the eventual resolution.

The immediate goal is to keep necessary operations moving while the owners evaluate their options.

3. Establish what the business owns—and owes

A useful separation discussion needs reliable financial information.

A bank balance alone will not show the company’s full position. Owners may need to review:

• Cash, receivables, and unpaid bills.
• Equipment, inventory, and other assets.
• Loans, leases, and personal guarantees.
• Tax obligations and outstanding filings.
• Customer contracts, deposits, and unfinished work.
• Ownership of intellectual property and digital assets.

This review can reveal obligations that affect the value of the company or limit the available exit options.

For example, equipment may have resale value but also carry debt. A customer deposit may sit in the bank while representing work the company still owes.

Before discussing how to divide the value, establish what value is actually available.

4. Agree on how an ownership interest will be valued

“How much is my share worth?” is often the hardest question.

The answer may depend on an existing contractual formula or a negotiated valuation process. Where appropriate, owners may use an independent business valuation professional.

Relevant considerations can include earnings, assets, liabilities, customer concentration, and how dependent the business is on a departing owner.

An ownership percentage does not, by itself, settle the purchase price. Nor is an owner’s original contribution necessarily the amount they receive when leaving.

The transaction also matters. Selling an ownership interest and selling the company’s assets can produce different legal, financial, and tax consequences.

Agreeing on the valuation method early can help keep negotiations focused on a shared process.

5. Choose a workable exit path

The preferred outcome must also be financially and legally achievable.

Exit path	Questions to resolve
One owner buys out another	Can the buyer fund the purchase? What approvals are required?
An outside buyer purchases an interest	Do transfer restrictions apply? Will the remaining owners accept the arrangement?
The entire business is sold	Do the owners agree on timing, price, and transaction terms?
Ownership or management is restructured	Can revised responsibilities resolve the problem?
The business closes	How will work, creditors, taxes, and remaining assets be handled?

A buyout may involve an upfront payment, financing, or installments. Each approach creates different risks and obligations.

An installment arrangement, for example, means the departing owner may remain financially connected to the business after giving up ownership. Payment protections and default provisions deserve careful review.

6. Resolve debts, guarantees, contracts, and taxes

An agreement between owners does not necessarily change obligations owed to someone else.

If an owner personally guaranteed a loan or lease, transferring their ownership interest does not automatically release that guarantee. Any release must be addressed with the relevant creditor.

Contracts may also contain consent requirements or provisions triggered by a change in ownership.

Tax consequences depend on the entity, its tax classification, and the transaction. A business taxed as a partnership has different reporting considerations from a corporation. The IRS provides an overview of partnership taxation and reporting in Publication 541.

Owners should involve legal and tax advisers before finalizing the structure and price of the deal.

7. Document the separation and complete the handover

A verbal agreement to “go our separate ways” leaves too much unresolved.

The final documents should address the agreed transaction, payment terms, effective dates, responsibilities, and any continuing obligations.

The practical handover deserves equal attention:

• Banking and signing authority.
• Website, domain, email, and software administration.
• Customer and supplier communication.
• Business records and company property.
• Required government filings and ownership records.
• Insurance and professional licensing implications.

Some contracts, licenses, and accounts may require consent, reapplication, or other steps rather than a simple transfer.

The separation is complete when the agreed legal, financial, and operational steps have been carried out.

If the business is closing, plan the wind-down

Closing a business involves more than stopping work.

Depending on the circumstances, the process may include collecting receivables, completing or resolving customer commitments, paying creditors, addressing employees, filing final tax returns, and submitting dissolution documents.

Remaining assets generally need to be handled after applicable obligations have been addressed.

Simply abandoning an entity can leave filings, fees, or other responsibilities unresolved. The SBA’s guide to closing or selling a business provides a starting point for planning.

What owners can do before a disagreement develops

The best time to establish an exit process is while everyone can discuss it calmly.

Before launching—or while the relationship is working well—address these questions:

What happens if an owner wants to leave?

How will the ownership interest be valued?

Who may buy it, and how would the purchase be funded?

What happens if the owners cannot agree on a major decision?

How will death, disability, or an inability to contribute be handled?

Review those arrangements as the business grows. A structure that suited a weekend venture may need updating once the company supports employees, larger contracts, and multiple households.

Frequently asked questions

Can one owner force another to buy them out?

There is no universal right to demand a buyout. Available rights and remedies depend on the governing agreements, business structure, facts, and state law.

Does a 50/50 split make separation harder?

Equal ownership can create a deadlock when owners disagree and have no effective resolution process. The governing documents should address how unresolved decisions will be handled.

Can an owner leave but keep their ownership interest?

That may be possible, but leaving day-to-day work and giving up ownership are separate matters. Agreements and applicable law determine the rights and obligations involved.

What if there is no written agreement?

Owners should obtain legal advice about the rules that apply and the options available. The absence of a written agreement does not mean there are no enforceable rights or obligations.

The working relationship may end. The obligations need a plan.

The Buck–Aikman headlines draw attention because audiences become accustomed to successful people working together. A possible separation raises questions about what comes next.

For business co-owners, answering that question requires a process: review the agreements, establish the financial facts, evaluate the options, and document the outcome.

Friendship makes starting feel easy. A clear agreement helps everyone understand how to move forward—even when moving forward means separating.

MyUSACorporation helps entrepreneurs with business formation and related filings, including certain changes and dissolution services. Owners considering a separation should coordinate the required filings with legal and tax advice appropriate to their situation.

This article provides general information, not legal, tax, or valuation advice. Requirements and available options depend on the business structure, agreements, circumstances, and applicable law.

Five-Star Reviews Can Win Customers. Buying Them Can Put Your Business at Risk.

What Google reviews mean for small businesses, how to ask for them properly, and why some common review tactics can create problems.

You can spend years building a business and still feel judged by a number beside your name.

A competitor has more Google reviews. Your rating drops after one unhappy customer. Someone offers to deliver dozens of five-star reviews for a monthly fee.

It is easy to understand why owners feel pressure. Reviews are public, easy to compare, and often part of a customer’s first impression.

But how much do they matter? What can you ask customers to do? And when does trying to improve your reputation become manipulating it?

A useful review strategy makes it easy for customers to share their experience and gives the owner a consistent way to respond.

At a glance

Question	What business owners should know
Do Google reviews help visibility?	They can help Google Maps and local business rankings. They do not guarantee first place.
Can you ask customers for reviews?	Yes. Request honest feedback without incentives, pressure, or prescribed content.
Can you offer a discount for a Google review?	No—even if you ask for an honest opinion rather than five stars.
Can you invite only satisfied customers?	Google prohibits selectively soliciting positive reviews.
Can you pay for review-management software?	Yes, but check how it collects reviews. Buying tools is different from buying fabricated opinions.
Can you remove a negative review?	Report policy violations. Disagreeing with a review is not grounds for removal.

These distinctions come from Google’s published policies and business guidance.

What Google reviews actually tell customers

The stars offer a quick summary. The comments explain the experiences behind them.

Someone choosing a contractor, shop, or local service may want to know whether the business returns calls, explains prices, completes the work, and handles problems fairly.

Consider two hypothetical reviews:

“Great company. Five stars.”

“They explained the estimate, arrived when promised, and fixed the problem on the first visit.”

Both are positive. The second gives a prospective customer more information.

Reviews are still an incomplete picture. They represent people who chose to post. Businesses also differ in age, size, and customer volume, so a larger review count does not independently prove better service.

For an owner, recurring comments deserve attention. If several customers praise clear communication, that is useful feedback. If several mention unanswered calls, that is something to investigate.

Do reviews help you rank higher on Google?

They can help with Google Maps and local business results.

Google says local rankings mainly depend on relevance, distance, and prominence. More reviews and positive ratings can contribute to prominence, but your location and how well your business matches the search also matter.

Google does not publish a review total that guarantees first place, and businesses cannot pay for better local ranking.

This guidance should not be interpreted as a promise that collecting reviews will move every page of your website higher in ordinary search results.

Keep your Business Profile accurate, including categories, contact details, hours, and services. Review requests should be part of that work.

Pro tip: Track inquiries, bookings, and sales alongside reviews. A higher review count is useful, but it does not tell you whether more people are becoming customers.

The FTC review rule is already in effect

The federal Consumer Reviews and Testimonials Rule took effect on October 21, 2024. This is an existing requirement, not a proposed 2026 rule.

It addresses practices including fake reviews, incentives conditioned on a particular sentiment, certain undisclosed insider reviews, and prohibited review suppression. Applicable violations can lead to FTC enforcement and civil penalties.

The FTC reinforced the issue in December 2025 by announcing warning letters concerning potential violations involving fake reviews and incentives for five-star ratings.

Owners need to understand both federal requirements and the policies of the platform where reviews appear.

Google and the FTC draw different lines on incentives

The FTC rule prohibits incentives expressly or implicitly conditioned on a positive or negative review. Disclosing the incentive does not make a paid five-star requirement acceptable.

An incentive genuinely unrelated to sentiment is not automatically prohibited by that particular provision. Disclosure obligations and other requirements can still apply.

Google prohibits incentives in exchange for reviews, even when the request is for an honest opinion.

Payment, discounts, free products, and free services can count as incentives.

Avoid offers such as:

• “Leave a Google review and get 10% off.”
• “Show us your review for a free item.”
• “Post five stars and receive a gift card.”
• “We will refund you if you remove your negative review.”

You can resolve a legitimate complaint through a refund or other remedy. Keep that resolution independent of whether the customer posts, changes, or removes a review.

Asking only happy customers can create problems

Some systems start with a private satisfaction survey.

Satisfied customers receive a Google review link. Dissatisfied customers are directed to a private complaint form.

This is commonly called review gating. Google prohibits discouraging negative reviews and selectively soliciting positive ones.

Private surveys can help you improve service. The problem is using the answers to decide who gets invited to review publicly.

Instead, choose a consistent point in the customer experience—such as after a completed service—and offer a neutral invitation without filtering by satisfaction.

How to ask for Google reviews properly

Google allows requests for genuine reviews and provides review links and QR codes to make the process easier. Customers must sign into a Google Account to post.

Ask when the customer has something meaningful to evaluate

For a repair business, that could be after the work is completed. For a product seller, it could be after delivery, with enough time to try the item.

An order confirmation may capture the checkout experience, but it does not establish that the product arrived or worked as expected. An FTC case involving Sitejabber illustrates the risk of presenting pre-experience feedback as reviews from customers who experienced the product or service.

Keep the wording neutral

A simple request might read:

“Thank you for choosing [Business Name]. If you would like to share your experience, you can leave an honest Google review here: [Review Link]. Your feedback helps us improve and helps others understand our service.”

The customer chooses whether to respond and what rating to give.

Make the process easy

Use a direct review link in a short follow-up message or a QR code on a receipt or thank-you card. Test it before sharing.

Avoid turning the request into a lengthy survey or a series of reminders.

Let customers choose their own words

Avoid providing scripts, required keywords, or claims for customers to post. Google prohibits requesting specific review content.

Also avoid instructions to mention a particular employee. Google’s current policy specifically addresses requests for content identifying staff members.

Keep reviews voluntary for customers and avoid staff quotas

Employees can offer a neutral invitation. They should not pressure customers to post while on the premises or stand over them while they write.

Google’s policy also identifies requesting that staff solicit a certain number of reviews as prohibited conduct. Build a consistent invitation process without making review collection an employee quota.

Responding to a bad review

A negative review can sting, particularly when you believe important details are missing.

Before responding, remember that prospective customers will read your reply too.

Keep it brief, address the concern, and offer an appropriate way to discuss the details privately. Avoid personal information, account details, and long public arguments.

For example:

“Thank you for raising this. We would like to understand what happened and review the service provided. Please contact [business contact] so we can discuss the details.”

Adapt the wording to the situation. If you already know what went wrong, acknowledge it accurately. Do not claim an investigation or resolution happened unless it did.

An unfamiliar reviewer is not automatically a fake reviewer

A reviewer may use a different name from the one in your records. A genuine experience can also involve an interaction with the business without a completed purchase.

Not finding a matching sale is a reason to investigate, rather than proof of fabrication. Google’s standard is a genuine experience with the business.

If you believe a review violates policy, report it through Google’s process and provide relevant evidence where available. Google says not to report reviews simply because you disagree with or dislike them.

Avoid groundless threats designed to silence criticism. Federal protections also restrict certain terms in standard consumer contracts that prohibit or penalize honest reviews.

Can you hire someone to manage reviews?

Yes. A provider may help send requests, organize feedback, or draft responses.

But understand how the service operates before paying for it. Ask:

• Who receives invitations?
• Are dissatisfied customers filtered out?
• Are reviewers offered incentives?
• Does anyone create reviews for customers?
• Are employees or connected people recruited to post?
• Does the provider guarantee a certain star rating?

The FTC advises businesses to examine review providers’ practices, including whether they create fake reviews or manipulate feedback.

A promise of “50 guaranteed five-star Google reviews” deserves scrutiny. Genuine customers remain free to leave a different rating—or no review at all.

What happens if Google detects manipulation?

Google may remove violating reviews and impose additional restrictions.

Possible actions include temporarily blocking new reviews, temporarily unpublishing existing reviews or ratings, and displaying a warning that fake reviews were removed.

Those consequences can damage the credibility the business was trying to build.

Look beyond the average rating

A monthly review check can help connect feedback with operations:

What to review	Why it matters
New genuine reviews	Shows whether customers are participating
Recurring praise	Identifies what customers value
Recurring complaints	Highlights issues to investigate
Response time	Shows whether feedback receives attention
Inquiries and bookings	Helps assess business results
Changes made after feedback	Shows whether the business is learning

If customers repeatedly mention unclear pricing or missed appointments, address those problems. Asking for more reviews will not correct the experience that produced the complaints.

Frequently asked questions

Can I ask for a five-star Google review?

Ask for an honest review instead. Avoid influencing the rating or prescribing the content.

Can I offer a reward if I do not require five stars?

Not for Google reviews. Google prohibits incentives even when you request honest feedback.

Can friends or employees review the business?

Do not recruit connected people to inflate your rating. Google prohibits reviews based on conflicts of interest, which can include employment and personal affiliations. A disclosure does not automatically make the review acceptable on Google.

Does the business with the most reviews rank first?

Not necessarily. Google also considers relevance, distance, and other aspects of prominence.

Can AI help with reviews?

AI can help draft a business’s response, provided you check the facts and protect private information. It should not invent customer experiences or fictional testimonials. The FTC rule covers fake or false reviews, including AI-generated fabrications.

What this means for your business

You cannot control every rating. You can control the service you provide, how you invite feedback, and how you respond.

Make honest reviews easy to leave. Keep incentives and pressure out of the process. Pay attention when customers repeatedly raise the same issue.

The stars may get someone’s attention. The experiences underneath them—and your response—give that person more to judge.

Official resources

• Google: Tips to Improve Your Local Ranking
• Google: Tips to Get More Reviews
• Google: Prohibited and Restricted Content
• Google: Business Profile Restrictions for Policy Violations
• Google: Report Inappropriate Reviews
• FTC: Consumer Reviews and Testimonials Rule—Questions and Answers

Information reviewed October 12, 2026. This article provides general business information, not legal advice.

Your LLC or Side Business Could Qualify for a 20% Tax Deduction. Here’s What Changed for 2026.

Weekend services, freelance work, and online shops may qualify. Here’s how the deduction works—and why your regular paycheck can affect the calculation.

You finish your shift, come home, and start working again—this time for yourself.

Maybe you build websites, sell handmade products, maintain lawns, or take photography bookings on weekends. The money might cover household bills. The business might be something you eventually want to do full time.

Calling it a “side business” does not make it less of a business for tax purposes.

Eligible owners can claim the qualified business income deduction, commonly called QBI or Section 199A. It generally allows a deduction of up to 20% of qualifying business income, subject to limits. Sole proprietors and owners of qualifying pass-through businesses can benefit.

The deduction is now permanent under current law, and changes taking effect in 2026 give smaller active businesses another reason to review their eligibility before filing.

At a glance

Question	Quick answer
Can a side business qualify?	Yes. Working part time does not automatically disqualify a qualifying business.
Do I need an LLC?	No. Eligible sole proprietors can claim QBI too.
How much can I deduct?	Generally up to 20% of qualified business income, subject to applicable limits.
What changed?	The scheduled expiration was removed, a minimum deduction was added, and certain phase-in ranges were expanded.
What is the new minimum?	A $400 deduction for eligible taxpayers with at least $1,000 in aggregate QBI from active qualified businesses.
Is that a $400 refund?	No. A deduction reduces taxable income; the savings depend on your tax situation.

The minimum deduction and expanded phase-in ranges apply to tax years beginning after December 31, 2025. For calendar-year taxpayers, that means the 2026 return generally filed in 2027.

Your business does not have to replace your regular job

A cleaning service operated on Saturdays, an online shop managed after work, or a freelance business with a handful of clients may qualify.

What matters is whether the activity is a qualifying trade or business and whether the owner meets the applicable tax requirements.

Employee wages do not qualify as business income for this deduction. Keeping your regular job, however, does not automatically prevent a separate business from qualifying. Income earned through a C corporation is also excluded.

That makes QBI relevant to people who are building a business gradually, without giving up the stability of a paycheck.

What changed for 2026?

The 20% deduction is not new. It has been available for tax years beginning after 2017.

The newer story is what the legislation enacted July 4, 2025, changed.

The deduction’s scheduled expiration was removed

QBI had been scheduled to expire after 2025. The law made it permanent under current law.

For eligible owners, that means the deduction continues beyond its original expiration date. It does not mean the rules can never change again.

Certain active owners can qualify for a $400 minimum deduction

Beginning in 2026, eligible taxpayers with at least $1,000 in aggregate QBI from active qualified trades or businesses can qualify for a minimum $400 deduction.

An active qualified business is one in which the taxpayer materially participates under the applicable tax rules. Simply owning a business does not establish material participation.

The $400 is a minimum—not an extra amount automatically added to the normal deduction. It also applies at the taxpayer level, rather than separately to every business.

Material participation is a condition of this new minimum. It is not a blanket requirement for the ordinary QBI deduction.

If the entire $400 deduction offsets income otherwise taxed at 22%, the federal income tax savings would be approximately $88.

The phase-in ranges for higher-income restrictions expanded

Additional restrictions begin applying above certain taxable income thresholds. The 2025 law expanded the ranges over which these restrictions phase in.

For 2026:

Filing status	Restrictions begin phasing in above	Phase-in range
Single, head of household, and most other returns	$201,750	$75,000
Married filing jointly	$403,500	$150,000
Married filing separately	$201,775	$75,000

These figures concern taxable income before the QBI deduction—not business sales or side business profit alone.

Crossing a threshold does not automatically eliminate the deduction. The outcome depends on factors including the type of business, wages it pays, and qualifying property it holds.

What could the deduction mean for a side business?

Consider a hypothetical owner with $20,000 in qualified business income from a weekend service business.

Assuming the owner qualifies and no applicable limits reduce the deduction:

Item	Illustrative amount
Qualified business income	$20,000
QBI deduction at 20%	$4,000
Federal income tax savings if the entire deduction offsets income taxed at 22%	$880

The $4,000 is the deduction. The $880 is the illustrative tax savings.

This example starts with qualified business income after applicable adjustments. It does not assume that $20,000 in customer payments automatically produces a $4,000 deduction.

QBI generally reflects qualifying income after business expenses and other applicable adjustments. The deductible portion of self-employment tax, self-employed health insurance deductions, and certain retirement contributions can affect the calculation.

Key takeaway: Calculate the benefit from qualified income, not gross sales. A business’s receipts, net profit, and QBI can be different numbers.

Why “up to 20%” matters

The ordinary deduction is generally subject to an overall limit of 20% of taxable income before the QBI deduction, minus net capital gain. Business losses and other restrictions can also affect the result.

For eligible active owners, the new minimum deduction can provide a $400 floor when the otherwise calculated deduction is smaller.

This is why multiplying business profit by 20% is a starting estimate rather than a complete tax calculation.

Do you need an LLC to claim QBI?

No. A qualifying sole proprietor can claim the deduction without forming an LLC.

An LLC’s federal tax treatment matters. A single-member LLC is generally disregarded as separate from its owner for federal income tax purposes unless it elects another treatment. An LLC with multiple members is generally treated as a partnership unless it elects corporate treatment.

Forming an LLC does not automatically make income eligible for QBI. Likewise, electing S corporation treatment does not guarantee a larger deduction. For example, reasonable compensation paid to an S corporation owner is excluded from QBI.

A structure decision should consider ownership, liability concerns, state requirements, administrative costs, and the overall tax picture.

Pro tip: Before changing your business’s tax treatment, ask your tax professional to compare the total cost—including taxes, payroll, and filing requirements.

Is your side activity a business or a hobby?

Selling something occasionally does not automatically establish a business. Enjoying what you do does not automatically make it a hobby, either.

The IRS considers several factors, including whether you operate in a businesslike manner, maintain records, devote time and effort to profitability, and change methods to improve results. No single factor decides the outcome.

Someone who occasionally sells a craft project may have a different tax situation from someone who sets prices, markets products, tracks expenses, and works consistently toward a profit.

Useful habits include:

• Recording sales and expenses throughout the year.
• Keeping receipts, invoices, and customer agreements.
• Reviewing whether prices cover costs.
• Documenting changes made to improve profitability.
• Keeping business transactions easy to distinguish from personal spending.

A separate account can make recordkeeping easier, but no single practice establishes that an activity qualifies.

Your paycheck can affect the deduction—even though it does not qualify

For side business owners, this is an easy detail to overlook.

Your wages are excluded from QBI, but they can contribute to the taxable income used to determine whether additional restrictions apply. A spouse’s income can matter when filing jointly.

At higher incomes, certain service businesses—including consulting, law, and health services—face restrictions that can reduce or eliminate their deduction. Other businesses may face limits based on wages and qualifying property.

A small consulting business is not automatically excluded. But a modest side business profit does not guarantee the full deduction when the owner’s overall taxable income is high.

What to do before year-end

Get your records in order. Reconcile sales and expenses with bank statements, payment platforms, and invoices. Taxable business income must be reported even when no information return, such as a Form 1099, arrives.

Confirm how your business is taxed. Know whether you report as a sole proprietor, through a partnership, or under a corporate election.

Review your entire income picture. Your regular job and, when filing jointly, your spouse’s income may affect the calculation.

Ask about the new minimum. If you have a smaller active business, ask whether you meet the requirements for the $400 floor.

Request a QBI review. Bring your tax preparer a direct question: “Does my side business qualify, and which adjustments or limits affect my deduction?”

Frequently asked questions

Can I claim QBI while working full time?

Yes, if your separate business qualifies. Your employee wages are excluded from QBI, but they can affect the income thresholds used in the calculation.

Can I claim QBI if I take the standard deduction?

Yes. Eligible taxpayers can claim it whether they take the standard deduction or itemize.

Does QBI reduce self-employment tax?

No. It reduces federal taxable income for income tax purposes. It does not reduce the net earnings used to calculate self-employment tax.

Is the new $1,000 threshold based on sales?

No. It is based on aggregate qualified business income from active qualified businesses.

Do I receive $400 for each business?

No. The minimum applies at the taxpayer level. It is a deduction, not a payment or an additional deduction for each business.

When do I claim the 2026 changes?

Calendar-year taxpayers generally apply them on their 2026 federal income tax return filed in 2027. Different rules apply to the 2025 tax year.

What this means for your side business

Your side business may only operate after work or on weekends, but its income still deserves careful attention.

Before filing your 2026 return, bring your income and expense records to your tax preparer and ask two questions: Does this business qualify for QBI, and does the new minimum deduction apply?

You put time into earning that money. Understanding the deduction helps you avoid paying more federal income tax than you owe.

Official resources

• IRS: Qualified Business Income Deduction
• IRS: Is That Activity Just a Hobby or a Business?
• IRS: Form 8995 and Current Filing Guidance
• IRS: Taxation of Limited Liability Companies
• IRS: Official 2026 Adjustments—Revenue Procedure 2025-32

This article provides general information about federal tax rules as of October 12, 2026. Eligibility and savings depend on individual circumstances. MyUSACorporation provides business document preparation and filing services, not tax or legal advice.

Thinking About Buying a Business? The SBA Just Changed the Rules

New SBA business-acquisition rules took effect October 1, 2026. If buying an existing business is part of your entrepreneurial plan, here’s what changed—and what you should know before making an offer.

Starting a business from scratch isn’t the only way to become a business owner.

Every day, established businesses with customers, employees, equipment, revenue and years of operating history are put up for sale. And as more longtime business owners approach retirement, buying an existing company could become an increasingly important path into entrepreneurship.

But there’s another part of the equation:

How do you pay for it?

For many buyers, an SBA-backed loan is one possible answer.

On October 1, 2026, the U.S. Small Business Administration’s SOP 50 10 8.1 took effect, including a new Appendix 15 dedicated specifically to 7(a) change-of-ownership transactions.

If you’re considering buying a business, expanding by acquiring another company or buying out an existing owner, the new framework is worth understanding before you structure the deal.

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At a Glance

The SBA hasn’t made business acquisitions impossible. It has created a more defined framework for evaluating and financing them.

What’s Important	What It Could Mean for a Buyer
Four defined acquisition categories	Requirements depend partly on the type of ownership transaction
10% equity requirement for an Initial Acquisition	A typical outside buyer generally needs meaningful equity in the transaction
Historical cash flow matters	Future growth projections generally can’t rescue an acquisition that fails the required historical debt-service test
Business valuation requirements	The asking price and supported business value may not be the same
Quality of Earnings review for certain $3M+ purchases	Larger Initial Acquisitions and Business Expansions can face substantially more financial due diligence
7(a) Small and SBA Express remain available	The September technical update expressly permits them for qualifying change-of-ownership transactions, subject to Appendix 15

The bigger takeaway: Don’t find a business, negotiate the entire deal and only then ask whether SBA financing works.

Understanding the financing structure earlier could prevent an expensive surprise later.

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Why Buying a Business Is Becoming a Bigger Entrepreneurial Opportunity

We recently discussed the ownership transition facing many established small businesses.

Owners retire. Families decide not to take over. Partners want out. Some entrepreneurs simply decide they’ve built enough and are ready for their next chapter.

That creates a problem for one entrepreneur—and an opportunity for another.

Instead of spending years trying to create customers, revenue, processes and brand recognition from zero, a buyer may be able to acquire a company that already has them.

Imagine buying a local service company with:

• 12 employees
• recurring customers
• $1.5 million in annual revenue
• equipment already in place
• an established reputation
• an owner ready to retire

You’re not buying an idea.

You’re buying an operating business.

But you’re also buying its risks, financial history, obligations and future cash flow.

That’s one reason the SBA’s new framework puts considerable emphasis on whether the business itself can financially support the acquisition.

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What Exactly Changed?

Appendix 15 organizes 7(a) change-of-ownership transactions into four categories:

Initial Acquisition

Generally, an outside buyer becomes the new majority or largest individual owner of an existing business.

Business Expansion

An existing qualifying business acquires another business as part of its expansion.

Owner Buyout

Existing owners or certain long-term employees acquire ownership interests in the business.

ESOP and Cooperative Transactions

Ownership transfers involving qualifying employee stock ownership plans or cooperatives.

Why does this matter?

Because the category can affect the required equity injection, debt-service coverage and financial due diligence applied to the transaction.

For many entrepreneurs searching for an established company to purchase, Initial Acquisition will be the category that matters most.

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How Much Money Will You Need to Put Into the Deal?

For an Initial Acquisition, SOP 50 10 8.1 requires an equity injection of at least:

10% of the total project cost.

For an Initial Acquisition, that minimum cannot be reduced or eliminated.

There’s an important distinction here.

The calculation isn’t necessarily based only on the advertised purchase price.

Suppose you purchase a company for:

Business purchase price: $1,000,000

But the financing request also includes:

Closing costs: $30,000
Working capital: $50,000

The total project cost in this simplified example becomes:

$1,080,000

A 10% equity injection would therefore be:

$108,000

—not $100,000.

Seller debt on full standby may potentially count toward part of the required equity injection, subject to SBA requirements and limits. Under the new framework, limited sources such as qualifying standby debt generally cannot account for more than half of the required injection.

That means buyers shouldn’t assume they can purchase a company with little or none of their own capital.

Pro Tip

Determine your realistic acquisition budget before shopping for businesses.

A $1 million business doesn’t necessarily mean a $1 million financing project once working capital, fees and other eligible costs are included.

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The Business Has to Support the Debt

Here’s where the new framework becomes particularly important.

Buying a great company at the wrong price can still be a bad deal.

For an Initial Acquisition, the SBA framework generally requires a minimum 1.25-to-1 debt-service coverage ratio, calculated using historical or permitted adjusted historical earnings.

In plain English:

Can this business generate enough cash to service the acquisition debt and continue operating?

A 1.25 coverage ratio essentially means the applicable earnings measure needs to provide $1.25 for every $1.00 of required debt service.

That’s a much different question from:

“Could this business make more money after I buy it?”

You may have brilliant plans.

You may see marketing opportunities the current owner missed.

You might introduce AI, e-commerce, new services, better advertising or improved operations.

Those plans may make the acquisition more attractive to you.

But for the required historical coverage test, future projections generally cannot substitute for a business that doesn’t demonstrate adequate historical performance, subject to limited exceptions in the SBA rules.

That’s a major distinction for prospective buyers.

Potential matters. But the numbers the business has already produced matter too.

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A $3 Million Purchase Can Trigger Much More Scrutiny

One particularly notable change affects larger acquisitions.

For an Initial Acquisition or Business Expansion where the Business Purchase Price is $3 million or more, the lender generally must obtain an independent Quality of Earnings (QoE) analysis that includes a Cash Proof.

Importantly, this threshold is tied to the applicable Business Purchase Price, not simply the amount of the SBA loan.

Think of a QoE as a deeper examination of the financial story the business is telling.

A buyer might see:

Revenue: $5 million
Reported earnings: $750,000

But the more important questions are:

• How much of those earnings are sustainable?
• Are unusual expenses being removed to make earnings appear stronger?
• Does actual cash activity support the reported results?
• Are seller adjustments reasonable?
• Are there revenue or customer risks hidden beneath the headline numbers?
• Will those earnings remain after ownership changes?

The SBA-required QoE must satisfy specific independence and lender requirements; a report commissioned by the seller or buyer does not automatically satisfy the SBA requirement.

For a buyer, that additional scrutiny shouldn’t necessarily be viewed as an obstacle.

It may uncover something you’d rather know before you own the company.

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The Asking Price Isn’t Automatically the Business Value

This distinction becomes critical when buying an existing business.

A seller can ask:

$2 million.

That doesn’t automatically mean the company supports a $2 million valuation for purposes of the SBA-financed transaction.

Business valuation requirements apply to change-of-ownership transactions, and the financing structure has to work within those requirements.

For certain smaller transactions, the updated SBA guidance permits a lender’s internal valuation when the Business Purchase Price is $350,000 or less and applicable conditions are met. Other transactions can require an independent valuation from a qualified source.

The important point for a buyer is simpler:

The seller’s asking price isn’t the final word on value.

If the supported value doesn’t justify the proposed transaction, the solution might require:

• a lower purchase price,
• additional buyer equity,
• appropriately structured seller financing,
• or a different transaction structure.

Pro Tip

Don’t fall in love with the business before you understand the numbers.

You’re not just buying its revenue.

You’re buying its ability to produce sustainable cash flow after the previous owner leaves.

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Buying a Business Is Different From Starting One

This is where the opportunity gets interesting.

Imagine two entrepreneurs each have $150,000 available.

Entrepreneur A starts from scratch.

That money may need to fund:

• business formation
• equipment
• inventory
• marketing
• payroll
• rent
• technology
• insurance
• customer acquisition

And revenue may take months—or years—to develop.

Entrepreneur B acquires an existing company.

That business might already have:

• customers
• employees
• suppliers
• systems
• equipment
• cash flow
• brand recognition

Neither approach is automatically better.

But they’re fundamentally different entrepreneurial strategies.

And for some future business owners, buying instead of building may deserve serious consideration.

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Don’t Forget the Business Entity

Buying a business also creates legal and organizational decisions beyond financing.

A buyer may need to determine whether the transaction will be structured as an asset purchase or an equity/ownership purchase, and whether a new LLC or corporation should be created to acquire and operate the business.

The structure can affect issues including:

• liabilities
• contracts
• licenses
• employees
• taxes
• intellectual property
• permits
• financing
• future ownership

This is an area where an attorney, accountant and lender should be involved before the transaction is finalized.

And if the acquisition requires forming a new LLC or corporation, obtaining an EIN, registering in another state or securing Registered Agent service, those steps can be addressed as part of the acquisition planning process.

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What Should You Do Before Making an Offer?

If you’re seriously considering purchasing a business with SBA-backed financing, don’t make financing the last step.

Before signing a purchase agreement, understand:

1. Which SBA acquisition category applies to the transaction.
2. How much equity you’ll realistically need.
3. Whether the company’s historical cash flow supports the proposed debt.
4. Whether the asking price can be supported by an appropriate business valuation.
5. Whether additional financial diligence, including a Quality of Earnings analysis, will apply.
6. How the acquisition entity and purchase should be structured.
7. What happens if financing isn’t approved.

Your purchase agreement should also be reviewed by qualified legal and financial professionals and contain appropriate protections for the transaction.

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Frequently Asked Questions

Can I use an SBA 7(a) loan to buy an existing business?

Yes. SBA 7(a) financing can be used for qualifying change-of-ownership transactions, subject to SBA eligibility requirements, lender underwriting and the requirements applicable to the specific transaction.

Did SBA business-acquisition rules change in October 2026?

Yes. SOP 50 10 8.1 became effective October 1, 2026, and Appendix 15 provides a dedicated framework for 7(a) change-of-ownership transactions.

Do I need 10% down to buy a business with an SBA loan?

For an Initial Acquisition, the SBA requires an equity injection of at least 10% of total project cost, and that minimum cannot be reduced or eliminated. Rules also govern what sources may count toward the required injection.

Can the seller help finance the purchase?

Potentially. Seller financing can be part of an acquisition structure. A seller note that is intended to count toward the required equity injection must meet SBA requirements, including applicable standby and source limitations.

Does SBA determine what a business is worth?

SBA change-of-ownership financing includes business valuation requirements. The lender must ensure the transaction complies with those requirements. A seller’s asking price by itself doesn’t establish the supported value of the business.

What happens when the Business Purchase Price is $3 million or more?

For qualifying Initial Acquisition and Business Expansion transactions with a Business Purchase Price of $3 million or more, the lender generally must obtain an independent Quality of Earnings analysis that includes a Cash Proof.

Can 7(a) Small or SBA Express financing be used to buy a business?

Under the SBA’s September 2026 technical update to SOP 50 10 8.1, 7(a) Small and SBA Express loans may be used for qualifying change-of-ownership transactions, subject to the requirements of Appendix 15.

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What This Means for Future Business Owners

For decades, the entrepreneurial dream has often been described the same way:

Come up with an idea. Start a company. Build it.

But there’s another route.

Find something someone else spent 20 or 30 years building—and become the person who takes it forward.

Many established businesses will eventually need new owners. Some may close because nobody steps forward. Others will be acquired by competitors, employees, family members or entrepreneurs who recognize an opportunity.

The SBA’s new framework doesn’t make buying a business effortless.

It reinforces something every prospective buyer should understand:

An acquisition needs to work financially—not simply look attractive in a listing.

So before asking:

“What business should I start?”

It may be worth asking another question:

“What business could I buy?”

For the right entrepreneur, that could be an entirely different path to business ownership.

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Official Resource:
U.S. Small Business Administration — SOP 50 10, Lender and Development Company Loan Programs
SOP 50 10 8.1 and the updated Appendix 15 became effective October 1, 2026.

The IRS Is Reexamining Pandemic Business Loans. What Should Small Business

New IRS examinations involving approximately $100 billion in pandemic-era loans raise questions about tax reporting, outstanding SBA debt, and the financial records business owners should still have.

The pandemic may be behind us, but the financial decisions businesses made during that period are still receiving attention from federal authorities.

On September 23, 2026, the U.S. Small Business Administration (SBA) announced that the Internal Revenue Service (IRS) had opened examinations following the identification of discrepancies associated with approximately $100 billion in pandemic-era business loans.

The announcement is the latest development in a multiyear effort to investigate potential fraud involving the Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) program.

For small-business owners who received assistance during the pandemic, the announcement raises an important question: Could a loan application submitted five or six years ago create financial or tax problems today?

The answer depends on the circumstances.

The $100 billion figure represents loans associated with identified discrepancies, not $100 billion in confirmed fraud or unpaid taxes. Nor does the announcement mean that every business that received pandemic assistance is being audited.

Nevertheless, it is a timely reminder that business owners should understand their remaining loan obligations, preserve important financial records, and know what to do if the IRS or SBA requests additional information.

Here is how the story developed, what has changed, and what business owners should consider today.

At a Glance: What Business Owners Need to Know

Key question	What it means for your business
What happened?	The IRS opened examinations following a review of discrepancies associated with approximately $100 billion in pandemic-era loans.
Is this a new investigation?	It is a new development in an enforcement effort that began during the pandemic.
Are all PPP and EIDL borrowers being audited?	No blanket audit of all borrowers was announced.
Does a discrepancy mean fraud?	No. Differences in reported information require examination before conclusions can be reached.
Is PPP forgiveness now taxable?	No. Qualifying PPP loan forgiveness remains generally excluded from federal gross income.
What should owners do?	Review loan applications, tax returns, forgiveness records, outstanding balances, and supporting documentation.

How We Got Here: A Quick Timeline of Pandemic Business Loan Oversight

The September 2026 announcement did not come out of nowhere. Federal authorities have been investigating pandemic-relief fraud for years.

2020–2021: Emergency funding reaches small businesses

The federal government launches PPP and expands EIDL assistance to help businesses survive the economic disruption caused by COVID-19.

PPP provides potentially forgivable loans for eligible payroll and other business expenses. COVID EIDL provides longer-term financing to help eligible businesses meet financial obligations and operating expenses.

The programs distribute substantial funding to businesses facing unprecedented economic uncertainty.

2022–2023: Investigators identify widespread potential fraud

Federal authorities continue reviewing suspicious applications, duplicate funding requests, and other potential misuse of pandemic assistance.

In June 2023, the SBA Office of Inspector General estimates that more than $200 billion in pandemic-relief assistance was potentially fraudulent.

The estimate identifies suspected fraud, not a final determination that every dollar was improperly obtained.

2024–2025: Investigations and recovery efforts continue

Federal authorities continue pursuing cases involving allegedly fraudulent applications, false financial information, and improper use of pandemic assistance.

Meanwhile, businesses with outstanding COVID EIDL loans remain responsible for meeting their repayment and servicing obligations.

September 23, 2026: The IRS announces a new phase of examinations

The SBA announces that it referred more than $200 billion in suspected pandemic-relief fraud to the IRS earlier in 2026.

The IRS compares information provided in loan applications with information reported on federal tax returns.

That comparison identifies discrepancies associated with approximately $100 billion in loans, prompting IRS examinations to determine whether additional taxes or penalties apply.

The significance of this latest development is not simply that federal authorities are continuing to investigate pandemic-relief fraud.

It is that information businesses provided when applying for assistance is being compared with their federal tax reporting to identify potential discrepancies.

That distinction brings the issue directly into the financial records of businesses that received pandemic assistance.

What Should Concern Business Owners Today?

For legitimate business owners, the latest announcement is not a reason to panic. It is a reason to revisit financial records that may not have received much attention since the pandemic.

There are five areas worth examining.

1. Do Your Original Loan Applications Match Your Financial Records?

When businesses applied for PPP or COVID EIDL assistance, they provided information about payroll, revenue, business operations, and other eligibility requirements.

The September 23 announcement specifically identifies comparisons between information supplied to the SBA and information reported to the IRS.

Consider a business that reported $400,000 in revenue on a pandemic-relief application but reported $250,000 on its federal tax return.

Does that difference automatically indicate fraud?

No.

The application and tax return may have covered different reporting periods. The business may have used a different accounting method, filed an amended return, or made an error that requires clarification.

PPP and EIDL applications also had different eligibility and financial-reporting requirements. Figures reported for one program should not automatically be expected to match those reported for another.

However, a significant unexplained difference could warrant additional examination.

What business owners should do: Locate your original loan applications and compare the reported figures with the relevant tax returns, payroll records, financial statements, and bank deposits.

If something does not reconcile, ask your accountant to investigate the difference before assuming that either document was incorrect.

Do not alter historical records to make the numbers match. If a material error is discovered, obtain professional guidance about the appropriate next steps.

2. Was Your PPP Loan Forgiveness Properly Documented?

PPP was designed to provide forgivable assistance when borrowers satisfied the program’s applicable requirements.

Businesses generally needed to document eligible expenses and meet the relevant forgiveness rules.

Although a loan may have been forgiven years ago, the supporting documentation can remain important if questions arise about eligibility, reported payroll expenses, or the use of funds.

There is also an important tax distinction.

Under federal law, qualifying PPP loan forgiveness generally creates tax-exempt income. Businesses can also generally deduct otherwise deductible eligible expenses paid with forgiven PPP funds, subject to applicable requirements.

The September announcement does not change the federal tax treatment of legitimate PPP forgiveness.

However, a business that obtained funds through false representations or improperly claimed forgiveness could face different legal and tax questions.

What business owners should do: Confirm that you can locate your PPP forgiveness application, forgiveness determination, payroll records, and documentation supporting the expenses used to obtain forgiveness.

If your business also claimed the Employee Retention Credit (ERC), review whether the same wages were improperly used to support both PPP forgiveness and the ERC.

The IRS prohibits claiming the ERC on wages used to obtain PPP forgiveness, subject to the applicable wage-allocation rules. A business may still qualify for the ERC on other eligible wages.

3. Do You Still Have an Outstanding COVID EIDL Loan?

This is an important distinction that can easily get lost in discussions about pandemic-relief funding.

PPP and COVID EIDL were different programs.

PPP loans could qualify for forgiveness. COVID EIDL loans generally created repayment obligations, even when the business experienced significant financial difficulties.

For business owners who still have an outstanding COVID EIDL balance, those obligations did not disappear when the pandemic ended.

The SBA continues to provide loan servicing, repayment information, and payment assistance for eligible borrowers.

What business owners should do: Review your current loan balance, payment history, interest, and repayment schedule.

If your business is experiencing financial difficulties, contact the SBA before allowing the loan to become seriously delinquent.

The SBA’s current payment-assistance program is designed for eligible borrowers experiencing temporary financial difficulties. Among other requirements, the business must be actively operating, the loan must meet the SBA’s payment-status requirements, and the borrower and owners must not be subject to active bankruptcy proceedings.

Approved assistance temporarily reduces payments. It does not eliminate the underlying debt, and interest continues to accrue.

Business owner tip: If you have an outstanding COVID EIDL loan, review your account through the official SBA Loan Portal:

https://lending.sba.gov

Verify your current balance, payment status, and any notices from the SBA. Do not assume that closing a business or stopping operations automatically eliminates the loan.

4. What If Your Accountant or Another Party Prepared the Original Application?

During the pandemic, many small-business owners relied on accountants, payroll providers, lenders, or third-party consultants to prepare relief applications.

Some owners may not have personally entered every figure submitted to the SBA.

However, using a third party does not automatically eliminate a borrower’s responsibility for representations made in a loan application.

If an application contains inaccurate information, the relevant facts—including who prepared it, what information was supplied, and what the borrower knew—may matter.

What business owners should do: Retrieve the complete application package, including supporting documents and communications with the person or company that prepared it.

If you discover a material error, consult a qualified tax professional or attorney before making corrections or contacting federal authorities.

An innocent bookkeeping discrepancy and a knowingly false application are not the same thing. The appropriate response depends on the circumstances.

5. Are You Planning to Sell Your Business or Purchase an Established Company?

This is an area that deserves particular attention as more business owners consider retirement, ownership transitions, or selling their companies.

A business that received pandemic assistance may still have outstanding loan obligations, collateral arrangements, or unresolved compliance issues.

For example, imagine purchasing an established company only to discover that it has an outstanding COVID EIDL loan secured by business assets.

Depending on the transaction structure and loan documents, the existing debt and collateral arrangements could affect the purchase, financing, or transfer of assets.

The SBA has specific procedures for COVID EIDL servicing actions, including requests involving changes in ownership, loan assumptions, releases of collateral, and releases of guarantors.

Before buying an established business, prospective purchasers should consider reviewing:

• Outstanding PPP or EIDL obligations and the associated loan documents.
• Any SBA liens, collateral agreements, or personal guarantees.
• PPP forgiveness determinations and relevant financial records.
• Notices of pending audits, examinations, repayment disputes, or other unresolved matters.
• Whether the proposed transaction requires SBA approval or a loan servicing action.

A business acquisition attorney and qualified accountant can help determine which obligations may remain with the seller, which could affect the buyer, and what protections should be included in the purchase agreement.

A buyer does not automatically assume every liability of the seller. The outcome depends on the transaction structure, applicable law, loan agreements, and other relevant circumstances.

The key takeaway: Buying an established business means examining its financial history, not just its current revenue, profitability, and customer base.

How Long Should Business Owners Keep Their Pandemic Loan Records?

One common mistake is assuming that financial records can be discarded once a loan has been forgiven or a tax return is several years old.

Record-retention requirements depend on the type of record, the applicable program, and the circumstances.

For federal income tax purposes, the IRS generally has three years to assess additional tax, but certain situations involve longer periods. For example, substantial omissions of income can trigger a six-year assessment period, while fraudulent returns may be assessed without a time limit.

Loan agreements, forgiveness requirements, and other applicable rules may also require records to be retained longer than the ordinary tax period.

For business owners who received pandemic assistance, it is sensible to preserve the complete loan file and supporting financial documentation until the applicable retention periods have expired and any outstanding examinations or disputes have been resolved.

If you are uncertain whether records can be discarded, consult your accountant or attorney first.

What If You Receive a Letter From the IRS?

Receiving an IRS notice does not automatically mean that your business has committed fraud.

An examination may involve a request for documents, clarification of reported figures, or an explanation of a particular transaction.

The IRS generally provides written instructions identifying the information it needs and the applicable response deadline.

If you receive a notice concerning pandemic-relief assistance, take the following steps:

1. Verify the notice.

Confirm that the correspondence is legitimate. Use the official IRS website or independently verified contact information rather than relying on unexpected emails, text messages, or payment requests.

2. Identify the issue and response deadline.

Determine whether the IRS is requesting documentation, proposing an adjustment, or initiating an examination. Do not ignore the deadline.

3. Gather the relevant financial records.

Collect the original loan application, applicable tax returns, payroll information, bank statements, and supporting documentation.

4. Seek professional guidance.

A qualified CPA, enrolled agent, or tax attorney can help evaluate the issue and determine an appropriate response. If fraud allegations or potential criminal exposure are involved, consult an attorney experienced in tax controversies.

5. Respond accurately and preserve your records.

Provide the requested information through the appropriate channels. Retain copies of correspondence and proof of submission.

For additional guidance, visit the IRS resource on understanding an IRS notice or letter:

https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter

Frequently Asked Questions

Is the IRS auditing every business that received a PPP or EIDL loan?

No. The September 23 announcement describes examinations arising from identified discrepancies. It does not announce a blanket audit of all pandemic-relief borrowers.

Will my forgiven PPP loan now become taxable?

Qualifying PPP loan forgiveness remains generally excluded from federal gross income. The new announcement does not change that treatment. However, improperly obtained assistance or inaccurate tax reporting can create separate issues.

Can the IRS investigate a pandemic loan from 2020 or 2021?

Potentially. The applicable assessment period depends on the tax year, the type of issue, and the relevant legal provisions. A business should not assume that all pandemic-era tax matters are closed simply because several years have passed.

What if my business has closed but I still owe an EIDL loan?

Closing a business does not automatically eliminate its loan obligations. The SBA provides specific servicing procedures for anticipated business closures and liquidation. Borrowers should contact the SBA to understand their obligations and available options.

Should I amend an old tax return if I discover an error in my loan application?

Not automatically. A loan application error does not necessarily mean the tax return is incorrect. Have a qualified tax professional review the underlying records and determine whether any correction is appropriate.

Final Thoughts: The Pandemic Is Over, but Your Business Records Still Matter

For many small-business owners, PPP and EIDL assistance provided a financial lifeline during one of the most difficult periods in recent business history.

Years later, those programs remain part of the financial history of thousands of companies.

The September 23 announcement is a reminder that information submitted during the pandemic can still be relevant to federal tax examinations and loan compliance.

But there is an important difference between a legitimate business that received assistance and a borrower who knowingly submitted false information to obtain funds.

Business owners should not interpret the announcement as evidence that every pandemic-relief borrower faces renewed scrutiny.

Instead, use it as an opportunity to review your records, resolve outstanding loan obligations, and ensure that your financial documentation accurately reflects your business activities.

If you are preparing to sell your business, purchase an established company, or transition ownership to a family member, pandemic-era financing should also be part of your financial and legal review.

The bottom line: You cannot change the financial decisions your business made during the pandemic, but you can make sure you understand them, have the documentation to explain them, and address any unresolved obligations before they become larger problems.

Official Government Resources

For business owners who want to review the latest developments or check their pandemic-era loan obligations, the following government resources provide additional information.

1. SBA: Pandemic-Relief Fraud and Enforcement Updates

Review official SBA announcements and developments involving PPP and COVID EIDL investigations.

https://www.sba.gov/about-sba/sba-newsroom

2. SBA: COVID-19 Economic Injury Disaster Loan

Information about COVID EIDL repayment, loan servicing, outstanding balances, and borrower obligations.

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan

3. SBA Loan Portal

Access your SBA loan account to review balances, payment information, and available servicing options.

https://lending.sba.gov

4. IRS: How Long Should I Keep Records?

Official IRS guidance explaining federal tax record-retention requirements and circumstances that may require businesses to preserve records for longer periods.

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

5. IRS: Understanding Your IRS Notice or Letter

Guidance for business owners who receive correspondence requesting additional information or notifying them of an examination.

https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter

Your Next Customer May Not Live in America, Is Your Small Business Ready to Sell Overseas?

How American entrepreneurs can use technology, overcome international business barriers, and discover new opportunities for growth beyond U.S. borders.

Imagine opening your business email tomorrow morning and finding an inquiry from a potential customer in Germany. They discovered your website, like what you offer, and want to place an order.

There’s just one problem: You’ve never sold anything outside the United States.

Can you accept their payment? Will your product meet their country’s requirements? How much will shipping cost? What happens if they want to return it?

Or perhaps you operate a consulting business, and a company in Canada wants to hire you. There’s no physical product to ship, but you’ll still need to consider contracts, payment arrangements, currency conversion, and potentially foreign tax requirements.

For many American small businesses, international expansion sounds like something reserved for large corporations with overseas offices, global supply chains, and dedicated legal departments.

But selling internationally doesn’t necessarily require any of those things.

An American entrepreneur can potentially reach overseas customers through an existing website, an online marketplace, or a digital service. Modern technology can make communication, payments, and international transactions more accessible to businesses of all sizes.

The opportunity is worth exploring. However, reaching an international customer and successfully serving that customer are two very different things.

Before your small business begins selling overseas, you need to understand where the opportunities exist, what challenges you may encounter, and how to determine whether international growth makes financial sense.

This guide explores the fundamentals of international selling and introduces three areas every entrepreneur should consider: technology and language, business operations and compliance, and international market growth.

At a Glance: What Does It Take to Sell Internationally?

Selling internationally can mean shipping a product to a customer in another country, providing professional services to an overseas company, or delivering digital products through an online platform.

The requirements vary depending on your business, the country you’re selling to, and the type of product or service you provide.

Area	What your business needs to consider
International demand	Are customers in other countries looking for what you sell?
Technology and language	Can overseas customers find, understand, and use your website?
Payments	Can you accept international payments and manage currency conversion?
Shipping and delivery	Can you deliver your product or service reliably and profitably?
Taxes and compliance	What U.S. and foreign requirements apply to your transactions?
Growth strategy	Can you test international demand before making a major investment?

The U.S. Small Business Administration provides resources to help entrepreneurs evaluate these questions, including export planning, market research, financing, and international trade requirements.

1. You May Already Have International Customers Looking for You

Before spending money on international advertising or creating a foreign-language website, consider something much simpler.

Look at where your existing customers and website visitors are coming from.

An American business might discover that people in Canada are regularly visiting its product pages. A software company might receive inquiries from businesses in the United Kingdom. A consultant might find that an article published months ago is attracting visitors from Australia.

These visitors aren’t necessarily customers yet. However, they may provide early clues about where international demand exists.

If your business has an established website, begin by reviewing:

• Website traffic by country and the pages international visitors view most frequently.
• Overseas inquiries, abandoned shopping carts, and attempted international orders.
• Search terms that bring visitors from outside the United States.
• Existing customers who have foreign billing addresses or international business operations.

For example, imagine an American company selling specialty woodworking tools. Its website receives consistent traffic from Canadian visitors, and several customers have asked whether the company ships to Ontario.

Rather than immediately launching a global advertising campaign, the owner could investigate whether serving Canadian customers is commercially viable.

That might involve researching shipping costs, applicable Canadian import requirements, competing products, customer demand, and the final price a Canadian buyer would pay.

If the numbers work, Canada could become a potential test market.

The important distinction is that international website traffic is an indication of interest, not proof of profitable demand.

Small Business Takeaway

Your first international growth opportunity may already be visible in your website analytics, customer inquiries, or existing sales records. Look for evidence of demand before investing in expansion.

2. Technology Is Making International Selling More Accessible

A generation ago, reaching overseas customers often required international distributors, extensive business travel, or substantial investment in foreign sales operations.

Today, an American business can potentially reach international customers through its existing website, online marketplaces, digital advertising, and virtual communication.

Technology doesn’t eliminate the challenges of international business, but it can reduce some of the barriers to finding and serving customers.

Consider a small American business selling handmade home décor.

Its owner could use an e-commerce platform to display products to international shoppers, translation tools to make descriptions understandable, and a payment provider that supports transactions from customers in selected foreign markets.

Shipping software may also help calculate delivery costs and prepare necessary documentation.

For a service-based company, the process could be even more straightforward. A graphic designer or business consultant may be able to communicate with overseas clients, deliver completed work electronically, and receive payment without shipping a physical product.

However, technology alone doesn’t make a business ready to sell internationally.

A website that accepts international orders still needs to provide accurate product information, comply with applicable regulations, and communicate realistic delivery expectations.

The U.S. International Trade Administration identifies website performance, search visibility, translation capabilities, and localized customer experiences as important elements of international e-commerce.

Language Is Only Part of the Challenge

Imagine finding a product on a foreign website. The description has been translated into English, but the price is displayed in an unfamiliar currency, the measurements use a different system, and the shipping information doesn’t explain whether delivery to the United States is available.

You might understand the product perfectly and still decide not to purchase it.

Your international customers can encounter the same problem.

Preparing a website for overseas customers may involve more than translating a few pages. Depending on the market, businesses may need to address local currencies, measurement systems, payment preferences, customer support, and culturally appropriate product descriptions.

AI-powered translation can help businesses prepare multilingual content, but important product specifications, contractual terms, and legally required information may need professional review.

The objective isn’t simply to make your website readable in another language. It’s to make the entire purchasing experience understandable, trustworthy, and practical for the customer.

In our next article, we’ll explore how small businesses can use AI, multilingual websites, international SEO, and e-commerce technology to reach overseas customers without unnecessarily rebuilding their entire digital presence.

3. Selling Overseas Is One Thing. Delivering Profitably Is Another.

Let’s return to our woodworking business.

The owner receives an order from a customer in Canada. The customer is willing to pay $150 for a specialty tool.

At first glance, that’s a successful sale.

But the business still needs to account for shipping, packaging, payment processing, currency conversion, any applicable duties and taxes it has agreed to cover, and the possibility of a return.

A profitable domestic transaction may become considerably less attractive when these additional costs are included.

The challenge is different for a service-based company, but it doesn’t disappear.

A U.S. consultant working with an overseas client may need to address payment terms, foreign exchange fees, contract enforcement, intellectual property, and applicable tax obligations.

The U.S. Commercial Service advises exporters to consider payment risk, foreign regulations, product standards, and shipping requirements as part of preparing for international sales.

Understand the Full Cost of an International Sale

Consider the following hypothetical transaction.

Illustrative example · Physical product

A $150 international order

Assume the seller has agreed to cover the listed shipping and import-related expenses.

Customer payment	$150.00
Product cost	−$55.00
International shipping and packaging	−$28.00
Payment and conversion fees	−$7.00
Seller-paid import charges	−$15.00
Other allocated operating expenses	−$20.00
Estimated profit before income taxes	$25.00

Illustrative amounts only. Actual costs, taxes, duties, and payment responsibilities depend on the product, destination, shipping terms, and transaction.

The business generated $150 in revenue, but its estimated profit was only $25.

That may still be an acceptable transaction. However, the owner needs to understand the actual economics before deciding whether to pursue additional international sales.

What About International Taxes and Regulations?

Selling internationally can introduce obligations that don’t arise in an ordinary domestic transaction.

Depending on the product, service, destination, and transaction structure, a business may need to consider:

• U.S. export controls and licensing requirements.
• Foreign product standards and import restrictions.
• Customs documentation, tariffs, and import duties.
• Value-added tax (VAT), goods and services tax (GST), or other applicable foreign taxes.
• Consumer protection, privacy, and contractual requirements.

These obligations vary by country and type of business. They should be researched before accepting orders in a new market.

The International Trade Administration provides country-specific information about customs requirements, product standards, and trade regulations.

Do You Need to Form a Company in Another Country?

Not necessarily.

A U.S. business may be able to sell products or provide services to foreign customers without establishing a separate legal entity overseas.

However, selling across borders and operating a business within another country are not always treated the same way.

Establishing a foreign office, hiring employees abroad, maintaining inventory in another country, or conducting certain regulated activities may create additional registration, tax, or licensing obligations.

The applicable requirements depend on the destination country’s laws and the business’s actual activities.

For entrepreneurs considering international growth, having an appropriately organized U.S. business, accurate financial records, and clear contractual arrangements provides a useful starting point.

MyUSACorporation can help entrepreneurs establish and maintain their U.S. business structure through services such as LLC formation , incorporation , and EIN applications .

However, forming a U.S. LLC or corporation does not automatically satisfy foreign business registration, tax, or licensing requirements.

In our upcoming international business operations guide, we’ll examine the financial and regulatory considerations in greater detail, including how businesses can evaluate payment methods, shipping arrangements, and the true cost of serving overseas customers.

4. The World Is a Big Market. Where Should Your Business Start?

One of the biggest mistakes a small business could make is assuming that international expansion means trying to sell everywhere at once.

Different countries have different customer preferences, competitive conditions, payment systems, regulations, and delivery costs.

A product that sells successfully in the United States may encounter limited demand in another country. A service that attracts customers in one market may require significant changes to succeed elsewhere.

Rather than attempting to reach the entire world, consider starting with one market where your business has evidence of potential demand.

Choosing Your First International Market

Let’s imagine a U.S. company that sells specialized outdoor equipment.

The owner has noticed visitors from Canada, Germany, and Australia.

All three countries could represent potential opportunities, but the business needs more information before deciding where to begin.

Research question	Why it matters
Is there measurable demand?	Identifies whether customers are actively seeking the product.
What does the competition look like?	Helps evaluate pricing and market positioning.
How much will delivery cost?	Determines whether the business can maintain acceptable margins.
Are there language barriers?	Identifies potential translation and customer service needs.
What regulations apply?	Helps determine the cost and complexity of entering the market.
Can the business support customers?	Evaluates communication, returns, and operational capacity.

The answers may reveal that one market is easier to test than another.

For example, Canada may offer practical advantages for some American businesses because of geographic proximity and shared language in many regions. However, Canadian import requirements, taxes, product regulations, and French-language obligations in certain circumstances still need to be considered.

For other businesses, a different country may offer stronger demand or a more suitable customer base.

The right starting point depends on what the business sells and its ability to serve that market.

The SBA offers market research resources and connections to U.S. Export Assistance Centers that can help small businesses evaluate potential overseas opportunities.

Start Small, Measure Results, and Expand Carefully

An international growth strategy doesn’t have to begin with a major investment.

A small business could begin by researching a single market, evaluating a limited product offering, and testing whether it can generate profitable sales.

The owner might start by accepting a small number of international orders or offering a specific service to customers in one country.

The results can help answer important questions.

Are customers willing to pay the final price? Can the business deliver reliably? Are communication and support manageable? Does the revenue justify the additional operational costs?

If the initial test produces encouraging results, the business can evaluate whether to expand its offering, invest in localized marketing, or explore additional markets.

If the results are disappointing, the owner can reassess the opportunity without having committed substantial resources to an unproven expansion strategy.

International growth should be driven by demonstrated demand and sustainable business economics, not simply the ability to reach customers in another country.

Our third follow-up article will explore how entrepreneurs can identify promising overseas markets, evaluate international demand, and develop a practical market-entry strategy.

5. Is Your Small Business Ready to Explore International Sales?

Before pursuing overseas customers, take a few minutes to evaluate your business’s current position.

You don’t need to have every answer today. The objective is to identify which areas deserve additional research before committing resources.

International Sales Readiness: Is Your Small Business Prepared?

Before pursuing overseas customers, take a few minutes to evaluate your business’s current position.

You don’t need to have every answer today. The objective is to identify which areas deserve additional research before committing resources.

1. International Customer Demand

Have you identified potential customers outside the United States? Review your website analytics, customer inquiries, and existing sales data for signs of international interest.

2. Target Market Research

Have you identified at least one international market worth exploring? Consider customer demand, competition, pricing, language, and local business requirements.

3. Website and Communication

Can international customers understand your products or services, navigate your website, and contact your business? Determine whether translation, localized content, or additional customer support may be necessary.

4. International Payments

Can your business accept payments from customers in your target country? Research available payment methods, currency conversion, transaction fees, and fraud prevention.

5. Shipping and Delivery

Can you deliver your products or services reliably and profitably? Consider international shipping costs, customs requirements, delivery times, and return policies where applicable.

6. Taxes and Regulatory Requirements

Have you researched the U.S. and foreign regulations that may apply to your business? Depending on what you sell and where you sell it, additional tax, licensing, product compliance, or export requirements may apply.

7. International Profitability

Have you calculated the potential profitability of an international transaction? Include payment processing, currency conversion, shipping, applicable duties and taxes, and additional operating expenses.

8. Your International Growth Strategy

Can you test international demand without disrupting your existing business? Consider starting with one country, a limited product or service offering, and a manageable investment.

What Your Answers Tell You

If you answered yes to most of these questions, you may have a useful foundation for exploring international sales.

If several areas remain unanswered, use them to guide your research before investing in overseas marketing or accepting international orders.

The goal isn’t to become an international business overnight. It’s to understand the opportunity, identify potential obstacles, and take the next step with confidence.

6. Where Can Small Businesses Find Help With International Expansion?

You don’t have to navigate international commerce entirely on your own.

Several U.S. government resources provide guidance on export planning, market research, regulatory requirements, and international sales.

U.S. Small Business Administration

Provides information about export planning, financing, international market research, and trade assistance for small businesses.

Resource: Trade Tools for International Sales 

U.S. Commercial Service

Offers export guidance, market intelligence, international business resources, and assistance with identifying foreign buyers.

Resource: Learn How to Export 

International Trade Administration

Provides resources covering international e-commerce, website localization, foreign regulations, and country-specific business requirements.

Resource: Website Internationalization 

These resources can help business owners move beyond general assumptions and evaluate the specific opportunities and requirements associated with their intended markets.

Frequently Asked Questions About Selling Internationally

Can a small business sell internationally without opening an office overseas?

Yes. Many businesses can sell products or services to foreign customers from their existing U.S. operations. However, the requirements depend on the country, the business activity, and whether the company establishes a taxable or legal presence in the foreign market.

Do I need an international website to sell overseas?

Not necessarily. An existing website or online marketplace may support international transactions. However, the business should verify that customers can understand its offering, complete payments, and receive the products or services they purchase.

Can an LLC sell products or services internationally?

Yes. A U.S. LLC can engage in international business, subject to applicable U.S. and foreign laws. Forming an LLC does not, by itself, eliminate export restrictions or foreign registration and tax requirements.

Do I have to charge foreign customers in their local currency?

Not always. Depending on the payment provider and transaction arrangements, customers may be able to pay in U.S. dollars or a supported local currency. Businesses should understand conversion costs, customer payment preferences, and the amount they will ultimately receive.

Does selling internationally mean I have to pay taxes in another country?

Not necessarily. Foreign tax obligations depend on factors such as the destination country, the product or service, transaction volume, local registration thresholds, and the business’s activities in that country. Businesses should obtain qualified tax advice when evaluating their specific circumstances.

What is the easiest way to start selling internationally?

A practical starting point is to identify a country where your business has evidence of demand, research the applicable requirements, calculate the expected costs, and test a limited offering before making a larger investment.

Final Thoughts: Your Next Growth Opportunity May Be Beyond America’s Borders

For many American entrepreneurs, growing a business has traditionally meant finding more local customers, expanding into neighboring communities, opening additional locations, or introducing new products and services.

But what if your next opportunity isn’t down the street, across town, or even in another state?

What if it’s thousands of miles away?

Today’s technology has made it possible for small businesses to connect with customers around the world in ways that once required substantial financial resources and international business infrastructure.

An American retailer can reach overseas shoppers through an online marketplace. A consultant can work with clients on another continent. A small manufacturer can explore international demand without immediately establishing operations in another country.

Yet the ability to reach international customers doesn’t automatically mean a business is prepared to serve them.

Language differences, payment processing, shipping expenses, regulatory requirements, and customer expectations can all influence whether an international opportunity becomes a profitable transaction.

That’s why successful international growth begins with preparation, not expansion.

You don’t need to sell to the entire world. You need to identify where your business has an opportunity, understand what it takes to serve that market, and determine whether the potential rewards justify the investment.

For some businesses, that may mean testing a single product in Canada. For others, it could mean offering professional services to clients in Europe or making digital products available to customers in several countries.

The important thing is to start with a manageable opportunity, learn from the experience, and build on what works.

Your next customer may not live in America. But with the right preparation, your American small business may be ready to serve them.

Coming Next: Turning International Opportunity Into Business Growth

This article is the first in our four-part series exploring how American small businesses can identify, evaluate, and pursue international growth opportunities.

In the next three articles, we’ll move beyond the big picture and examine the practical steps entrepreneurs can take to prepare their businesses for overseas customers.

Part 2: Your Website Speaks English. Your Next Customer May Not.

We’ll explore how AI, website translation, international SEO, and e-commerce technology can help American businesses reach overseas customers, communicate effectively, and create a purchasing experience that builds trust across borders.

Part 3: Selling Overseas Is One Thing. Getting Paid, Delivering, and Staying Compliant Is Another.

We’ll examine international payments, currency conversion, shipping, customs, taxes, and the regulatory considerations that can affect the profitability and legality of cross-border transactions.

Part 4: The World Is a Big Market. Where Should Your Small Business Start?

We’ll bring everything together with a practical international growth strategy, showing entrepreneurs how to identify promising markets, evaluate demand, test opportunities, and expand without unnecessarily putting their existing businesses at risk.

The world is open for business. The next step is determining where your business fits in it.

The SBA Is Redefining “Small Business.” Could Your Company Qualify Under the Proposed New Rules?

More than 110,000 additional companies could potentially be classified as small businesses under a sweeping SBA proposal—and the agency is hearing public testimony on the changes tomorrow.

What exactly makes a business “small”?

Ten employees? Fifty? Less than $1 million in annual revenue?

The answer is more complicated than most business owners realize.

For purposes of many federal programs, the U.S. Small Business Administration doesn’t use one universal definition of a small business. Instead, SBA size standards vary by industry and are generally based on either a company’s average annual receipts or number of employees.

And now those rules could be changing.

On August 20, 2026, the SBA proposed a major overhaul of the system used to determine which companies qualify as small businesses. The proposal would simplify industry classifications and increase size thresholds in numerous industries.

According to the SBA, the changes could bring more than 110,000 additional employer firms into the small-business category.

And this isn’t an old regulatory proposal gathering dust in Washington.

Tomorrow, September 17, the SBA will hold a virtual public forum to hear testimony about the proposed changes. Testimony from the forum will become part of the official administrative record that SBA says it will consider when developing the final rule.

For growing companies that have assumed they’re simply “too big” to qualify as small businesses, this may be a development worth watching closely.

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🔎 At a Glance

What’s happening?
The SBA has proposed a significant overhaul of its small-business size standards.

Are the new standards in effect?
No. These remain proposed rules as of September 2026.

How many companies could be affected?
SBA estimates that more than 110,000 additional employer firms could be classified as small businesses under the proposal.

What’s changing?
The proposal would simplify industry classifications, raise numerous size thresholds and change the methodology SBA uses to evaluate industry market size and competition.

Why does it matter?
A company that is too large under today’s standard could potentially qualify as small under a revised standard if the proposal becomes final.

What’s happening next?
SBA is holding a virtual public forum on September 17, 2026, to gather testimony before developing the final rule.

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What Does the SBA Actually Mean by a “Small Business”?

This is where things get interesting.

There isn’t one revenue or employee number that separates every small business from every large business.

SBA size standards vary by industry and are generally based on either the number of employees a company has or its average annual receipts.

The applicable standard is tied to the company’s North American Industry Classification System (NAICS) code.

That means a company employing several hundred people might still qualify as small in one industry, while a company with much lower revenue could exceed the small-business threshold in another.

For federal contracting purposes, SBA generally averages annual receipts over the company’s latest five completed fiscal years.

Employee-based standards generally look at the average number of employees during each pay period over the company’s latest 24 calendar months.

There is another important factor business owners sometimes overlook:

Affiliates can count.

When determining size, SBA rules can require a business to include employees or receipts from affiliated companies. Affiliation generally involves the power of one business or person to control another, whether or not that power is actually exercised.

So looking at your company’s latest annual revenue or simply counting the employees on today’s payroll may not give you the complete answer.

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What Is the SBA Proposing to Change?

The August proposal would make some substantial changes to the current system.

1. Fewer Size-Standard Categories

SBA is proposing a move toward broader four-digit NAICS classifications where appropriate, rather than relying as extensively on separate six-digit classifications.

According to the agency, this would reduce the number of size-standard categories from nearly 1,000 to 338 broader industry groupings.

That’s a reduction of roughly 65%.

The idea is to make determining small-business status simpler while creating standards that SBA believes better reflect today’s competitive markets.

2. Much Higher Limits in Some Industries

This may be the biggest part of the story for growing businesses.

Some proposed size thresholds aren’t increasing by a few percentage points. They’re increasing substantially.

Consider several examples supplied directly by SBA:

Industry	Current threshold cited by SBA	Proposed threshold
Semiconductor manufacturing	1,250 employees	2,800 employees
Shipbuilding	1,300 employees	2,300 employees
Oil drilling	1,000 employees	2,650 employees
Support activities for animal production	$11 million receipts	$71 million receipts

A semiconductor manufacturer employing 2,000 people doesn’t sound like a “small business” in everyday conversation.

Under the proposed SBA standard, however, it potentially could be.

And that’s where understanding the purpose of these standards becomes important.

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How Can a Company With 2,000 Employees Be a “Small Business”?

Because “small” is relative to the industry in which a company competes.

A 2,000-employee manufacturer might sound enormous compared with a local contractor, accounting practice, retailer or consulting firm.

But that manufacturer may be competing against multinational corporations employing tens of thousands of people and generating billions of dollars in revenue.

SBA size standards aren’t designed simply to determine whether a company feels small.

They’re intended to establish the maximum size at which a business can still be treated as small within its particular industry for applicable federal programs.

That’s why the thresholds can vary so dramatically.

And it’s one reason SBA says the standards need to evolve as industries grow and change.

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SBA Is Also Rethinking How Markets Are Defined

Another interesting part of the proposal involves the geographic scope of competition.

Not every industry competes in the same kind of market.

A technology company might compete for customers nationally—or internationally—while businesses in some retail, construction and service industries may compete primarily within much smaller geographic markets.

SBA’s proposed methodology attempts to account for differences like these when evaluating industry market size and competitiveness.

That does not necessarily mean two otherwise identical companies will receive different size standards simply because they’re located in different states.

Instead, geographic competition becomes part of the methodology SBA can use when determining the characteristics and competitive environment of an industry.

The broader objective is to make the definition of “small” better reflect how businesses actually compete.

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Why Being Classified as “Small” Can Be a Big Deal

This isn’t simply about what label appears next to a company’s name.

SBA size standards help determine whether businesses are eligible to participate in certain federal programs and compete for federal contracts reserved or set aside for small businesses.

The proposed changes could therefore make additional businesses eligible to pursue SBA lending programs, federal small-business contracting opportunities and other programs—provided they meet all the other requirements of the particular program.

That’s an important distinction.

Being classified as small doesn’t automatically guarantee a loan, government contract or access to every SBA program.

But it can open the door to opportunities that otherwise wouldn’t be available.

And that creates an intriguing possibility.

A company could potentially grow out of “small business” status—and then qualify again.

Imagine a successful business that gradually exceeds its industry’s existing SBA size threshold.

As a result, the company loses its small-business classification for certain federal purposes.

If SBA subsequently raises that industry’s threshold substantially, the same company could potentially fall within the definition again.

That’s why these proposed changes deserve attention from established companies as well as startups.

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Could Your Business Suddenly Become “Small”?

Potentially.

SBA says the proposed changes would add more than 110,000 employer firms to the small-business population.

Among the approximately 6.3 million employer firms in the United States, SBA describes that as roughly a 1.8% expansion.

For a very small company with five employees, the new standards may not make much practical difference. That business probably already falls well below its applicable size threshold.

But the proposal becomes much more interesting for companies that:

🔹 Have grown close to or beyond their existing SBA size limit

🔹 Operate in industries receiving substantially higher proposed thresholds

🔹 Want to pursue federal contracting opportunities

🔹 Previously lost small-business eligibility because of growth

🔹 Have expanded through acquisitions or affiliated businesses

🔹 Operate across multiple business activities or NAICS classifications

For those businesses, the government’s definition of “small” could have very real financial consequences.

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📅 Why September 17 Matters

Before anyone begins planning around the proposed standards, there’s an important point to remember:

The rules aren’t final.

Tomorrow, Thursday, September 17, 2026, the SBA will hold a virtual public forum specifically addressing the proposed size standards and revised methodology.

The SBA says testimony presented at the forum will become part of the administrative record used in developing the final rule.

The agency is particularly encouraging participation from businesses that currently sell to the federal government and organizations involved in providing companies access to capital.

Written comments can also be submitted through the federal rulemaking process under RIN 3245-AI67.

That’s important context because the final standards could differ from what is being proposed today.

For business owners, tomorrow’s forum is another step in the process—not the finish line.

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⚡ Pro Tip: Find Your NAICS Code Before You Assume You Don’t Qualify

One of the easiest mistakes a business owner can make is assuming “small business” has one universal definition.

It doesn’t.

Your applicable NAICS classification can determine the size standard against which your business is measured.

Businesses can also conduct activities that fall under multiple NAICS codes, while individual federal contracting opportunities are assigned particular industry classifications.

Before deciding you’re too large—or assuming you’re small enough—identify the relevant NAICS code and check the applicable SBA standard.

The SBA provides an official Size Standards Tool specifically for this purpose.

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A Simple Example

Suppose a company has grown rapidly during the past several years.

It now has:

Annual receipts: $24 million
Employees: 140
Industry: A sector using a receipts-based SBA standard

Is it still a small business?

There’s not enough information to answer that question.

You would first need to identify the applicable NAICS classification and its corresponding size standard.

Then you would need to calculate receipts according to SBA rules rather than simply looking at this year’s sales.

And if the business has affiliates, their receipts may also have to be included.

That’s why a company shouldn’t automatically assume it’s too large—or small enough—to qualify.

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What Should Business Owners Do Right Now?

The proposal isn’t final, so companies shouldn’t make eligibility decisions using the proposed thresholds yet.

But that doesn’t mean there’s nothing to do.

1. Identify Your NAICS Classification

Determine which NAICS codes accurately describe your company’s products or services.

2. Check Your Current SBA Size Standard

Use the official SBA Size Standards Tool instead of relying on a generic definition of small business.

3. See How Close You Are to the Current Limit

Businesses approaching or recently exceeding their existing threshold have an obvious reason to monitor the rulemaking process.

4. Look at the Proposed Standard for Your Industry

Some of the proposed increases are significant. Companies that previously dismissed SBA opportunities because they were too large may want to revisit that assumption if the proposal becomes final.

5. Review Potential Affiliations

Subsidiaries, ownership structures and relationships with other businesses can affect SBA size calculations.

6. Follow What Happens After the September 17 Forum

The testimony and written comments submitted during the rulemaking process will be considered by SBA before it develops the final rule.

Until that happens, today’s standards remain the ones businesses should use.

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Don’t Confuse “Proposed” With “Approved”

This distinction deserves emphasis.

A headline saying the SBA is “redefining small business” can easily sound as though the changes have already happened.

They haven’t.

SBA announced the proposed overhaul on August 20, 2026.

The agency is still accepting and evaluating input, including testimony at the September 17 public forum.

Until a final rule is issued and becomes effective, businesses should continue using the currently applicable SBA size standards when determining their eligibility.

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Frequently Asked Questions

Is every business with fewer than 500 employees considered a small business?

No.

You may frequently see 500 employees used as a broad statistical definition of small business, but SBA program and federal contracting eligibility relies on industry-specific size standards.

Are SBA size standards based on revenue or employees?

Both can be used.

Which measurement applies depends largely on the company’s industry and NAICS classification.

Do affiliated companies count toward my size?

They can.

SBA rules require businesses to account for affiliates when calculating size where the affiliation rules apply. That can mean including affiliated employees or receipts.

Have the new 2026 SBA size standards taken effect?

No.

As of September 16, 2026, the major changes announced August 20 remain proposed.

What happens on September 17?

SBA will hold a virtual public forum to hear testimony concerning the proposed size standards and revised methodology.

According to SBA, testimony will become part of the administrative record and will be considered along with written comments when the agency develops its final rule.

Could a company that’s currently too large become eligible?

Potentially.

Because many proposed thresholds would increase, some companies that exceed today’s standards could fall within a new threshold if the applicable proposal becomes final.

Eligibility would still depend on the final rule, the company’s industry, applicable size calculations, affiliation rules and the requirements of the particular federal program or contract.

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The Bigger Picture: Growth Shouldn’t Automatically Close the Door

Perhaps the most interesting part of the SBA proposal is what it says about the changing scale of American business.

A company can grow considerably and still be relatively small compared with the dominant competitors in its industry.

That’s particularly true in capital-intensive industries where businesses need significant workforces, equipment, technology and revenue simply to compete.

SBA’s proposal attempts to account for that changing reality while simplifying a classification system that has grown increasingly complex.

For entrepreneurs and established business owners, there’s also a practical lesson:

Don’t assume your company is too large—or too small—for an opportunity until you check.

Industries change. Businesses grow. Government standards change with them.

And if the SBA ultimately adopts these expanded standards, more than 110,000 additional employer businesses could find themselves looking at opportunities that weren’t previously available to them.

For some growing companies, being redefined as “small” could turn out to be a very big deal.

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Official Government Resources

U.S. Small Business Administration — Proposed Size Standards Overhaul
SBA’s August 20, 2026 announcement explains the proposed changes, the 110,000-business estimate, industry examples and the move toward broader NAICS classifications.

U.S. Small Business Administration — September 17 Public Forum
SBA’s official announcement explains the public testimony process and how comments will be considered when developing the final rule.

U.S. Small Business Administration — Size Standards Tool
Business owners can use SBA’s official tool to check whether their business currently qualifies as small for government contracting purposes.

This article is intended for general informational purposes and should not be considered legal, financial or government-contracting advice.

Do LLCs Still Have to File a BOI Report in 2026? FinCEN Just Changed the Rules

What the August 2026 Final Rule Means for LLCs, Corporations, Foreign Companies and U.S. Business Owners

Updated September 2026

If you own an LLC or corporation in the United States, you may remember the wave of warnings that began a few years ago:

File your Beneficial Ownership Information report. Watch the deadline. Don’t risk the penalties.

Then the deadlines changed.

Court cases followed. Federal enforcement policy changed. And the reporting rules themselves changed.

Now there is another major development.

On August 11, 2026, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, issued a final rule making permanent the BOI reporting exemptions for U.S. companies and U.S. persons that were introduced in 2025.

The final rule became effective August 14, 2026.

For millions of American business owners, the answer is now straightforward:

U.S.-created companies are no longer required to file BOI reports with FinCEN.

That includes the typical LLC or corporation created under the laws of a U.S. state.

But BOI reporting has not disappeared completely.

Certain companies formed under the laws of a foreign country and registered to do business in the United States can still have BOI reporting obligations.

That distinction is important—particularly because years of older articles, emails, compliance notices and even some government materials remain online.

Here’s what business owners need to know now.

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What Is Beneficial Ownership Information?

Beneficial Ownership Information, commonly called BOI, identifies certain individuals who own or exercise substantial control over a company.

BOI reporting was created under the Corporate Transparency Act (CTA) as part of an effort to make it more difficult to use anonymous companies for money laundering and other illicit activities.

When the original requirements took effect, many LLCs, corporations and other entities created in the United States potentially fell within the reporting requirements unless they qualified for an exemption.

For millions of small businesses, that created an entirely new federal compliance responsibility.

That framework has now changed substantially.

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The Big 2026 Change: U.S. Companies Are Exempt

FinCEN’s August 2026 final rule makes permanent the exemption from BOI reporting for U.S. companies and expands relief for U.S. persons.

FinCEN’s current guidance is explicit: U.S. companies are exempt from BOI reporting requirements and therefore no longer need to file BOI reports.

The simple version:

Business Situation	BOI Report Required?
LLC created under U.S. law	No
Corporation created under U.S. law	No
U.S.-created company owned by U.S. persons	No
U.S. person with a FinCEN ID	No BOI update/correction requirement
Certain foreign companies registered to do business in the U.S.	Potentially yes
U.S. beneficial owner of a foreign reporting company	U.S. person’s BOI is not reported

For the typical entrepreneur starting an LLC or corporation in the United States, BOI reporting is no longer part of the federal formation checklist.

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Didn’t the BOI Requirement Already Change in 2025?

Yes.

And this is an important distinction.

The major exemption for domestic companies actually began in 2025, not August 2026.

FinCEN issued an interim final rule in March 2025 that revised its regulations so the reporting-company definition generally applied only to certain entities formed under the law of a foreign country and registered to do business in the United States.

Entities created in the United States were exempted from BOI reporting.

The August 2026 final rule is important because it makes those exemptions permanent and expands relief for U.S. persons.

So if you heard in 2025 that a domestic U.S. LLC no longer needed to file a BOI report, that information was correct.

The August 2026 rule finalizes that framework.

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I Formed an LLC in the United States. Do I Need to File BOI?

For a typical LLC created under the laws of a U.S. state:

No.

FinCEN states that entities created in the United States are exempt from BOI reporting requirements.

Consider three examples.

Florida LLC

Maria forms an LLC under Florida law.

BOI filing required? No.

Texas LLC

David creates a Texas LLC for his consulting business.

Even if David is the company’s sole owner, the Texas LLC is a U.S.-created entity.

BOI filing required? No.

Delaware Corporation

A group of entrepreneurs incorporates a startup in Delaware.

The corporation was created under U.S. law.

BOI filing required? No.

The state changes.

The basic BOI result does not.

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What About an LLC Created Before the Rules Changed?

The exemption isn’t limited to companies formed after August 2026.

U.S.-created entities are exempt under FinCEN’s current rules regardless of whether they were created before or after the latest final rule.

That is particularly important for business owners who may still have an old compliance reminder sitting in their inbox—or who find an older article telling them that they need to submit a BOI report.

Check the date of the information you’re reading.

FinCEN itself currently warns that some BOI information on its website may be outdated and specifically tells users to disregard older guidance stating that U.S. companies or their beneficial owners must report BOI.

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What If I Already Filed a BOI Report?

Millions of business owners complied with earlier versions of the reporting requirements.

If you’re one of them, that doesn’t mean you did anything wrong. You followed the requirements and guidance applicable at the time.

The August 2026 final rule provides additional relief for U.S. persons.

FinCEN announced that it will delete previously reported information by U.S. persons who are now exempt from BOI reporting from the BOI database.

FinCEN also states that U.S. persons with a FinCEN Identifier are not required to update or correct information they previously submitted to FinCEN.

That’s an important distinction from the original BOI regime.

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Who Still Has to File a BOI Report?

This is where business owners need to be careful.

BOI reporting has not been eliminated altogether.

Under FinCEN’s current framework, a reporting company generally must be an entity that:

1. Was formed under the laws of a foreign country;
2. Subsequently registered to do business in a U.S. state or Tribal jurisdiction by filing a document with a secretary of state or similar office; and
3. Does not otherwise qualify for an exemption.

FinCEN describes these as the entities formerly known as foreign reporting companies.

For example:

A company incorporated under Canadian law subsequently registers to conduct business in a U.S. state.

That is fundamentally different for BOI purposes from an LLC originally formed under the laws of Florida, Texas or another U.S. state.

The Canadian company may have BOI reporting responsibilities.

The domestic U.S. LLC does not.

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“Foreign LLC” Doesn’t Always Mean Foreign for BOI Purposes

This is one of the most confusing parts of the terminology.

States frequently use the term foreign LLC to describe an LLC created in another U.S. state.

Suppose you create:

Example LLC in Maine

and later register that LLC to conduct business in New Hampshire.

New Hampshire may treat the Maine company as a foreign LLC because it was created outside New Hampshire.

But Maine is obviously not a foreign country.

For BOI purposes, the company was still created under the laws of the United States.

That’s different from a business formed under the laws of Canada, the United Kingdom, Germany or another country and subsequently registered to do business in the United States.

“Foreign” for state registration purposes does not necessarily mean “foreign” for FinCEN BOI purposes.

This is an important distinction for companies operating in multiple states.

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What About U.S. Owners of Foreign Reporting Companies?

The final rule also provides significant relief for U.S. persons.

Reporting companies do not need to report BOI for U.S. person beneficial owners or U.S. person company applicants.

U.S. persons also do not need to provide their BOI to reporting companies for which they are beneficial owners or company applicants.

A foreign company that remains subject to BOI reporting should therefore determine exactly whose information must be reported rather than relying on BOI instructions written before the rules changed.

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What Are the Filing Deadlines for Foreign Reporting Companies?

Certain foreign entities that remain reporting companies still need to pay close attention to FinCEN’s filing requirements.

Under FinCEN’s current guidance:

Foreign reporting companies registered to do business in the United States before March 26, 2025 were required to file by April 25, 2025.

Foreign reporting companies registered on or after March 26, 2025 generally have 30 calendar days after receiving notice that their registration is effective to file their initial BOI report.

Because BOI obligations depend upon the entity and its circumstances—and because the rules have changed several times—foreign businesses should confirm their requirements using FinCEN’s current guidance.

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BOI Is Gone for U.S. Companies. Business Compliance Isn’t.

This may be the most important takeaway.

A domestic LLC no longer having to file a BOI report does not mean the LLC no longer has compliance responsibilities.

BOI was only one potential requirement.

Depending on the state and the type of business, an LLC or corporation may still need to deal with:

• Annual or biennial reports
• State filing fees
• Franchise or similar state taxes
• Registered agent requirements
• Business licenses and permits
• State tax registrations
• Employer registrations
• Federal and state tax filings
• Local licensing requirements
• Changes to company information
• Foreign qualification when doing business in additional states

Eliminating one federal reporting requirement doesn’t eliminate the obligations necessary to keep a company active and in good standing.

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Don’t Confuse BOI Reporting With Your Annual Report

They’re completely different.

A BOI report is a federal filing administered by FinCEN under the Corporate Transparency Act.

An annual or biennial report is generally a state filing used to keep information about a business entity current.

So:

BOI exemption does not mean annual-report exemption.

If your state requires an annual or biennial report, the elimination of federal BOI reporting for U.S. companies does not eliminate that state requirement.

Missing required state filings can result in penalties, loss of good standing and, in some circumstances, administrative dissolution.

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Don’t Confuse BOI Reporting With an EIN Either

An Employer Identification Number (EIN) is also completely separate from BOI reporting.

The IRS issues EINs for federal tax-administration purposes.

Depending upon the circumstances, an LLC may need an EIN for federal tax filings, hiring employees, banking or other business purposes.

The elimination of BOI reporting for domestic companies does not eliminate EIN requirements.

That’s why entrepreneurs should think about business formation as a process rather than a single filing.

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Starting an LLC in 2026? Here’s What Comes Next

The BOI change simplifies one aspect of starting and maintaining many U.S. businesses.

But forming an LLC is still just the beginning.

After formation, business owners should determine whether they need to:

1. Obtain an EIN
Determine whether your business needs an Employer Identification Number from the IRS.

2. Create an operating agreement
An operating agreement can establish ownership, responsibilities and rules for operating the LLC.

3. Establish a business bank account
Separating business and personal finances can make recordkeeping and business administration significantly easier.

4. Determine licensing requirements
Licenses and permits can exist at federal, state, county and municipal levels depending on the business.

5. Register for applicable taxes
Sales tax, payroll taxes and other registrations may apply.

6. Maintain a registered agent
LLCs and corporations generally need to maintain a registered agent as required by their state of formation or registration.

7. Track ongoing state compliance
Know when annual or biennial reports and other required state filings are due.

8. Register in additional states when required
Expanding business activities into another state may create foreign qualification requirements.

The BOI requirement has been removed for U.S.-created companies.

The need to properly maintain your business has not.

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Why Are Business Owners Still Finding Conflicting BOI Information?

Search for BOI requirements online and you may still encounter information saying that U.S. LLCs must file.

There’s a simple reason:

The rules changed faster than many websites did.

FinCEN itself acknowledges this problem.

Its current FAQ pages warn that some information may be outdated and specifically instruct readers to disregard older guidance saying U.S. companies or their beneficial owners must report BOI.

That makes publication and update dates unusually important when researching BOI.

An article written in 2024 may have been accurate when published—and completely wrong for a domestic LLC today.

Whenever possible, business owners should verify BOI information against current FinCEN guidance.

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Frequently Asked Questions About BOI Reporting in 2026

Do LLCs have to file a BOI report in 2026?

LLCs created under U.S. law are exempt from federal BOI reporting under FinCEN’s current rule.

Do U.S. corporations have to file BOI?

Corporations created under U.S. law are also exempt.

I just formed a new U.S. LLC. Do I have 30 days to file BOI?

No. The current 30-day requirement applies to certain qualifying foreign reporting companies, not an LLC created under U.S. law.

I already filed BOI. Do I need to keep updating it?

U.S. companies are now exempt from BOI reporting. FinCEN also states that U.S. persons with FinCEN IDs aren’t required to update or correct information they previously submitted.

Is the Corporate Transparency Act gone?

No.

The CTA still exists, but FinCEN’s regulations have substantially narrowed the entities and individuals subject to BOI reporting.

Is a Delaware LLC considered a foreign company for BOI purposes if I live in another state?

No. An LLC created under Delaware law is a U.S.-created entity for BOI purposes.

What if my LLC operates in multiple states?

Operating in multiple states can create foreign qualification requirements at the state level, but registering a U.S.-created LLC in another U.S. state doesn’t turn it into an entity formed under foreign-country law for BOI purposes.

Does the BOI exemption mean I don’t need a registered agent?

No. Registered-agent requirements are separate from BOI reporting.

Does the BOI exemption mean I don’t have to file my annual report?

No. State annual or biennial reporting requirements are separate from federal BOI reporting.

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Final Thoughts: One Less Filing Doesn’t Mean You’re Done

For American small-business owners, the August 2026 BOI final rule provides something that has sometimes been difficult to find during the implementation of the Corporate Transparency Act:

Clarity.

A typical LLC or corporation created under U.S. law is no longer required to file Beneficial Ownership Information with FinCEN.

That’s good news for entrepreneurs.

But it also illustrates a larger lesson about owning a business.

Compliance changes.

Deadlines change. Regulations change. Businesses expand. States have different requirements. What applied when you formed your company may not be what applies several years later.

The smartest approach isn’t simply checking “LLC formed” off a list.

It’s understanding what comes next—and keeping your business compliant as it grows.

MyUSACorporation.com helps entrepreneurs form and maintain U.S. business entities, obtain EINs, meet registered-agent requirements, navigate foreign qualification and handle ongoing business filings.

Whether you’re starting your first company or expanding an existing business into another state, understanding the requirements before they become a problem can save considerable time and frustration later.

This article is provided for general informational purposes only and does not constitute legal, tax or financial advice. BOI requirements and other business regulations can change. Businesses with questions about their specific obligations should review current government guidance and consult an appropriate professional.

The Way We Work Has Changed. The Opportunity Hasn’t.

From the workers and entrepreneurs who built America to the small businesses, side hustles and new ideas shaping what comes next.

Labor Day has always been about work.

But maybe this year, it’s also worth thinking about what work has become—and where it’s going next.

For generations, the American formula seemed relatively straightforward:

Work hard. Learn a trade. Build a career. Start a business. Create something better for the generation that follows.

The details changed, but the underlying promise remained remarkably consistent:

Work could create opportunity.

As we celebrate Labor Day 2026—and as America moves through its 250th year—that idea deserves another look.

Because the workplace is changing.

Technology is changing it. Artificial intelligence is changing it. Remote work changed it. Inflation, higher operating costs, demographic shifts and a rapidly evolving economy are changing it.

But something else is happening at the same time.

The barriers between having a job and becoming an entrepreneur are becoming thinner than ever.

And that may create one of the most interesting periods for American entrepreneurship we’ve seen in generations.

The Past: America Was Built by People Who Worked—and People Who Took Risks

When we looked back at America’s early entrepreneurs in our America 250 series, one thing became clear:

They didn’t have an entrepreneurial ecosystem.

There were no online incorporation services.

No digital banking.

No Shopify.

No social media.

No Google.

Certainly no artificial intelligence capable of helping someone create a business plan over morning coffee.

There were farmers, tradespeople, merchants, printers, craftsmen, manufacturers and shopkeepers.

Many were simply trying to make a living.

Yet collectively they created businesses, industries and communities that helped build a country.

That’s an important part of the Labor Day story.

American labor and American entrepreneurship have always been connected.

Someone worked.

Someone learned.

Someone saw a better way.

And eventually, someone decided to build something of their own.

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There is no shortage of predictions about the future of work.

AI will eliminate jobs.

🔨 The Present: Work Is Being Redefined Again

AI will create jobs.

Remote work is ending.

Remote work changed everything.

Nobody wants to work.

People are working harder than ever.

Reality, as usual, is considerably more complicated.

The August employment report actually delivered an encouraging Labor Day headline: the U.S. added 162,000 jobs, while unemployment remained at 4.1%.

Small-business owners aren’t exactly retreating either. Recent NFIB data showed small-business optimism reaching an 11-month high, with hiring intentions increasing even as businesses continue struggling to find qualified workers.

But underneath those numbers, work itself is changing.

AI provides a perfect example.

Research from the U.S. Chamber Foundation found that half of workers at small businesses already use AI, primarily to increase productivity rather than eliminate human work.

And research released just this week by the Federal Reserve Bank of New York found something similar: AI adoption has risen sharply among the businesses it surveys, but widespread AI-driven layoffs have not materialized. Retraining existing workers has been a much more common response.

So perhaps we’re asking the wrong question.

Instead of:

“What jobs will technology eliminate?”

Maybe entrepreneurs should be asking:

“What new opportunities will technology make possible?”

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💡 The Future: The Smallest Business May Have the Biggest Opportunity

This is where Labor Day 2026 gets interesting.

For most of American history, building a company required resources.

Employees.

Office space.

Equipment.

Capital.

Specialized expertise.

Distribution.

Marketing.

Today, one person sitting at a kitchen table can access capabilities that would once have required an entire organization.

You can build a website.

Research a market.

Create advertising.

Analyze competitors.

Manage customers.

Sell nationwide.

Automate administrative work.

Develop products.

And increasingly, use AI as a force multiplier across nearly all of it.

That doesn’t guarantee success.

But it dramatically changes what one motivated person can attempt.

The entrepreneurial appetite is clearly still there. The U.S. Chamber notes that America has recorded more than 5 million new business applications every year since 2021.

That’s a remarkable number.

Millions of people are still looking at the world and saying:

Maybe I can build something.

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💰 But Opportunity Still Needs Discipline

That brings us back to another theme we’ve explored recently.

Starting a business has become easier.

Running one well hasn’t.

Your business can have money in the bank without all of that money actually being yours to spend.

Revenue isn’t profit.

Personal credit isn’t business credit.

Growth doesn’t automatically create healthy cash flow.

And having customers doesn’t necessarily mean you have a sustainable business.

In fact, today’s entrepreneur may need more financial discipline precisely because technology makes it possible to move so quickly.

The tools changed.

The fundamentals didn’t.

Know your numbers.

Protect your cash.

Build credit.

Understand your obligations.

Stay compliant.

Serve your customers.

Adapt.

Keep going.

Those principles would have sounded familiar to entrepreneurs 100—or even 250—years ago.

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🚪 The Employee and Entrepreneur Aren’t Opposites Anymore

There’s another shift worth recognizing this Labor Day.

We often talk about employees and entrepreneurs as though they live in two separate worlds.

Increasingly, they don’t.

Today’s entrepreneur might also be tomorrow’s employee.

Today’s employee might operate a weekend business.

A freelancer might eventually create an LLC.

A laid-off executive might become a consultant.

A tradesperson might start taking independent jobs.

Someone approaching retirement might finally build the business they’ve thought about for 20 years.

And someone working a perfectly good full-time job might simply decide:

I’d like to create something that’s mine.

Entrepreneurship doesn’t always begin with quitting your job.

Sometimes it begins with opening another door.

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From 1776 to 2026, the Tools Changed. The Instinct Didn’t.

That may be the thread connecting our America 250 series, our recent discussions about business credit and cash flow, and Labor Day.

The entrepreneur of 1776 and the entrepreneur of 2026 would barely recognize each other’s workplaces.

But they might recognize each other.

Both saw uncertainty.

Both saw risk.

Both had bills to pay.

Both probably wondered whether their idea would work.

And both eventually had to make the same decision:

Do I keep thinking about it—or do I start building it?

Technology will continue changing.

Jobs will continue changing.

Industries will disappear and new ones will emerge.

AI will become more capable.

The definition of a “workplace” may look completely different ten years from now.

But opportunity isn’t disappearing.

It’s moving.

And the people willing to learn, adapt, work and occasionally take a calculated risk will continue finding it.

That’s something worth remembering this Labor Day.

Happy Labor Day from MyUSACorporation.com

Here’s to the employees who keep businesses running.

The owners who sign the checks.

The entrepreneurs working after everyone else has gone home.

The people starting over.

The people starting something on the side.

And the people sitting somewhere this weekend thinking:

“Maybe it’s finally time to start.”

Because America’s next great small business is probably just an idea today.

And somebody still has to build it.