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Unmasking Ownership: The Power and Purpose of Beneficial Ownership Reporting · The Millionaire Dentist™

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  Hello everyone, Welcome to the Millionaire Dentist Podcast, brought to you by four
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  Quadrons Advisory. On this podcast, we break down the world of dentistry,
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  finances and business practices to help you become the millionaire dentists you deserve to be.
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  Please be advised we do speak with an honest tongue and may not be
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  safe for work. Hello and welcome. This is Casey Hires back at the
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  Millionaire Dentnist podcast and studio with co host Jared Bridgeman. Casey, Hey you
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  doing. I like your bright pink shirt today. Pretty in pink. That's
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  right. I accept that compliment. Yeah, a regular. I mean it's
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  ninety degrees and you're wearing a sweater, so well, it's not ninety in
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  my office. I love the Earth Times though, Thank you, thank you.
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  We have a special guest with us today, Steve Levy aka Pipes.
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  He's our director of accounting here. Yeah. Yeah, he's that guy with
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  you know, he's an attorney. It's a top dog. He's he's real
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  smart. He's an accountant. Thanks guys, CPA, J D, A
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  little bit everything. Yeah, thanks for joining us. Absolutely, you're regretting
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  it already. Yeah, So it's always fun when Jared and I go in
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  and go Steve, what do our listeners need to hear about from the world
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  of tax management and accounting? And his eyes perked up. He's got pages,
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  he's got tabs, he's got color codes, He's ready to rock your
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  world. He's much more organized about this than we ever are. I don't
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  even like I'm looking at a few notes here, I don't even know what
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  this topic is. So I genuinely am going to learn as much as our
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  listeners are. Steve, what are we going to talk about today? So
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  we're talking about the beneficial Ownership information reporting b O I B O I.
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  What do you have what that stands for? I had no idea, right
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  all right? OI? Yeah, OI B O I. So what that's
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  about is there was a corporate When when did BOYE come into play? Yeah?
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  So that that's with the Corporate Transparency Act introduced really kind of over a
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  year ago. Part of that was a new reporting requirement of boy to be
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  filed with the Financial Crimes Enforcement Network VINCENNE and reporting companies have to disclose detailed
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  information about their beneficial owners and the company itself, and some of the types
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  of information that you need to disclose. Some's intrusive possibly, Yeah, so
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  the company information. There's also a driver's license needed to be uploaded and the
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  tax id number of the company, as well as just some miscellaneous information besides
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  that. So interesting. Yeah, So the government has issued a regulation or
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  a responsibility for owners of businesses that's right to give more information, called a
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  Transparency Act. Is this going along with the government Transparency Actor? A wait,
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  that didn't exist? Okay, let me ask you what the with the
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  driver's license and stuff? Is that for everybody that's considered an owner, it
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  has to submit their license into this. That's correct, So anyone that benefits
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  from the company in any way has to submit their driver's license. So if
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  a practice owner and let's say spouse is on payroll, they would need to
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  submit this information too. No, it's really just the owner direct owner itself.
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  So if the doc and his wife both have ownership in the company,
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  right, if they're both listed as owners, then that's who needs to be
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  on the ownership reporting. Are there any loopholes or exceptions to getting out of
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  this? There are there. There's not too many though, unfortunately, but
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  there are a few. If but one is if it's called a large operating
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  company, and that's if entities have reported five million in gross receipts in the
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  previous year's return and have more than twenty full time employees, then that's considered
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  a large operating company. And so therefore they wouldn't have to there's obviously not
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  a ton that if they do hit that level, are they underneath a different
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  kind of act or thing that they have to submit to. No, not
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  really that they're just out So bigger companies are going to have less transparency.
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  Yeah, definitely, that seems appropriate, right going after a smaller company.
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  Okay, and also we're not just talking about companies, but we're also talking
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  about any kind of LLC that they may have registered. Basically, anything any
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  entity that's registered with the Secretary of State LLC professional company is anything that's under
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  that filing has to do this filing. So they could You can even be
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  like a have a part time photography business for a hobby, I'll say,
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  you got to still do this exactly, So it's it's pretty over encompassing for
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  the filing. Gotcha. Gotcha. So that's the most major exception for for
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  everybody else that falls into this category. When does this to be reported?
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  Is it more than once? How does this? How does this system work?
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  So there hasn't really been a kind of repeat requirement for this. There
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  is an initial filing and then if there's a change, you get thirty days.
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  But for those that those companies that have been in existence before twenty twenty
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  four, you get until two thousand and the end of the year of really
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  twenty twenty four to file it. It says January first, twenty twenty five.
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  But when you get that, now, if you create a company in
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  this year, then you have ninety days from the data formation to file it.
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  And if you create a company in twenty twenty five, you have thirty
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  days to knock out that requirement. And then in terms of changes, that
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  would be if let's say a partner buys in Yeah, that's really it ourselves.
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  That's a typical change that we see for that, and you generally have
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  ninety days from that file that change to do your reporting. Is this something
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  that most accounting firms are aware of and do or is it kind of hit
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  and miss From what you've seen, it's really hit or miss. We've seen
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  that there may be an extra charge for this filing it really it's not a
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  filing that takes too much to do, but it's it is a requirement and
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  there is just kind of gathering of the driver's license and basic information and just
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  to revisit on the change. It's actually thirty days from the time that the
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  change is reported to to file that change report. So here's a question for
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  you. Let's say a dentist out there ten years ago created an LLC thinking
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  they're going to get into some side thing. It never took off, nothing
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  ever happened. There's there's an all for all purposes. This LLC doesn't do
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  anything right, but it was technically created let's say ten years ago. Yes,
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  do LLCs go away after a certain point in time, or do dentists
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  and specialists who may have had some other venture or LLC that's dead. Do
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  they have to go back and do it for that Or does an LLC go
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  away automatically if there's no action or it goes away if there isn't a continuous
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  filing with the Secretary State, then they do what's called administratively dissolve it and
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  then it doesn't exist for a Secretary of state. Is that automatic? Is
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  that something that that it's stayed by state, but we've seen like Indiana and
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  others kind of do that just dissolve it now for legal purposes if you still
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  want that LLC to exist, and we've seen so it goes away unless you
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  do something to keep it going, right, Okay, the filing and and
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  if that goes to another exception, if it's super inactive where it has no
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  money, nothing going on at all, that is one of the exceptions as
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  well, besides the big one. It kind of goes to extremes large operating
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  company or super inactive LLC that's just kind of sitting there with no money,
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  no activity. That's another one that could possibly be under it because there I
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  talked to a lot of practice owners who in the past maybe they have created
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  an LLC for something, but it never did anything. Yeah, and so
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  if that's ten years ago, they don't need to worry about it necessarily,
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  right, But you know, couldn't hurt to air on the safe side to
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  file it, especially if you you've continuously filed your Secretary of State filings which
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  are generally annually or biannually, just to be on the safe side. So
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  what happens if I don't want to do this. Well, those listeners out
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  there, we're thinking of that, right, sure, yeah, so straight
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  to jail. Not exactly, not straight to jail, but there are steep
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  penalties. So we're talking about five hundred dollars per day for each day that
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  it's late. Oh wow, So you want to get it there on time
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  to make sure it's had a reminder of your calendar. Yeah. If there's
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  willful failure to provide it, then we're talking criminal penalties including imprisonment for up
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  to two years and a and or a fine of up to ten thousand dollars.
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  So you know, it's the fence end group and they're not going to
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  mess around. That's why they're kind of wanting all this information. And I
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  guess getting back to getting to what they say they're going to use it for.
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  They say that they want this it's related to national security. And this
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  is straight from their pamphlet national Security, Intelligence and law enforcement and so and
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  so. Only that. Okay, so that's what it's for. But who
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  Okay, we're putting our information into some portal, some kind of system,
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  right, who, at the end of the day has access to this information?
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  So everybody, everybody, well except for the people. So this is
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  the official word. It will permit federal, state, local, and tribal
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  officials as well as certain foreign officials who submit through the US Federal government agency
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  to tain this information. So that's that's the Steve. This makes me nervous,
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  Okay, the whole thing. But the takeaway is ask your CPA or
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  accounting firm specifically regarding beneficial ownership information reporting. Are we on point with that?
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  Yeah? And it's really and if there's a hesitation, you need to
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  make sure you get a real clear answer from them because if this is overlooked,
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  this can come back in a in a very ridiculous way. Yeah,
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  And it's really not that hard to submit it. It's it's not a lot
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  of information that they have a website. When we first talked about this,
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  things hadn't been set up yet. That was a discussion in December. Now
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  things are set up, you get confirmations of filings, you see what is
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  needed for it. It's really not a lot of stuff that you need to
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  submit. So a lot of our listeners are probably in the bucket of you
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  have to the end of the year. Yeah, because they formed the business
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  prior to this year. That's right, and we're getting ramped up for our
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  clients for that filing now and kind of knocking it out for the various LC's
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  or PCs and things like that. Well, Unfortunately, I think too many
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  practice owners assume or jump to the conclusion that whoever they've hired is on top
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  of this, and just with basic things that we go over, we notice
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  a lot is missed, unfortunately, right, and so this is one of
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  those things. Again, hopefully it's a non issue your accounting goes, yeah,
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  of course, but if there's anything less than that, you probably need
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  to press them a little bit to make sure they're on top of this.
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  And if they're not, that's probably a red flag that that might not be
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  the outfit that your successful practice should be utilizing for your tax preparation. Right,
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  Yeah, certainly, and I would think we would want to make sure,
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  certainly if in twenty twenty five we're talking to someone that we want to
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  ask, hey, do you have this filing, because if you don't,
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  then it's it's get it in as fast. As well. We've talked about
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  shareholder loans, which to me are a huge deal that should be known about,
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  and a lot of practice owners don't even know they have those, So
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  this is something that could slip through the cracks that could get get real bad
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  real quick. Yeah. Absolutely, you said tribal leaders. Tribal leaders,
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  what does that mean? Not exactly sure, tribal officials. I'm sure they
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  know if they're a tribal official, but I'm not sure what a tribal official
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  is. So yeah, that's interesting. Burbage right there. Anything else on
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  the boy that we need to know about, Well, it's it's important and
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  you don't want to be in jail if by not filing and just get it
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  done to jail go for a better reason, right yeah, time, Yeah
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  literallyzy see you, Thank you so much. Guys listeners out there, If
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  you want to learn more just about how we are such masters at the business
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  side of industry, you can always come to one of our events that we're
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  hosting. We're doing a lot the next couple of months in the Midwest.
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  We're going to be in Saint Louis and Kansas City, and next week after
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  that we're going to be in the Indianapolis, Indiana area, followed by Ohio,
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  Sincy and Cleveland and all that stuff. Casey, I know you've got
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  some great plans coming up as well for a couple of different shows we'll be
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  at. Other than that, please visit four Quadrantsadvisor dot com. There is
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  a button's of events. You can click on that and see where we're going
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  to be, or we can visit the Millionaire Dentist button and there's all.
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  I just launched a brand new blog last month. We're going to have a
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  monthly blog kind of blasted on there as well if you want to learn more
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  about how great we are, how great I am, Casey, Steve,
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  all these guys, so thank you so much for being here. Thank you.
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  That's all the time we have today. Thank you to our guests for
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  their insight and for sharing some really great information. And thank you to you
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  the listener for tuning in. The Millionaire Dentist podcast is brought to you by
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  four Quadrants Advisory to see if they might be a good fit for you and
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  they retain over ninety five percent of their clients. Thank you again for joining
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