November 4, 2024 • 19 mins
Loving the show? Click here to shoot a text and let me know!
The Corporate Transparency Act is probably something the average business owner has heard of, but it's certainly something you should be aware of if you have an LLC.
This act now requires certain companies to report Beneficial Ownership Information on a yearly basis. But what does this mean, and who does this affect?
In this episode, I talk with CPA and tax advisory expert, Leslie M. Jones, of L.M. Jones & Associates, and she breaks down exactly what this means for you as a business owner. Listen in as Leslie and I discuss the origin of this new requirement, why it matters, and how you can make sure you're in compliance. This is an episode you do not want to miss!
In this episode:
0:03 Understanding the Beneficial Ownership Information Requirement
3:01 Why is This New Requirement Relevant?
4:45 Who This New Requirement is For
5:27 How to File Your BOI
8:14 What Happens If You Do Not File On Time
12:54 Annual Report and EIN Requirements
18:20 BOI Filing Assistance and Resources
Links mentioned in this episode:
File your BOI
Visit Leslie's website
-------------------------------
Visit us online
Let's Get Social:
Facebook | Instagram | YouTube | Threads
Ready to get started on your website?
Start here --> Download our FREE Website Planning Guide
Did you know that only about 30% of your audience is ready to buy from you at any given time? Download the Sales Funnel Cheat Sheet to get started planning your content and strategy based on the stages of your customer's journey.
Sign up for The Collective's Cove, a monthly curated collection of digital marketing strategies for your business.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Victoria (00:03):
Welcome to the Web Design and Marketing Diaries
podcast, where we discuss onlinestrategies designed to help you
grow your business and standout in your industry.
All right, thank you, guys somuch for joining this special
episode of the Web Design andMarketing Diaries podcast.
Thank you, guys, so much forjoining this special episode of
the Web Design and MarketingDiaries podcast.
(00:24):
I'm really excited about thisepisode here because I have a
special guest that's going to bejoining me talking about
something that I'm sure manybusiness owners have heard about
over probably all of this yearI think I probably started
hearing about it mostly at thebeginning of this year and that
is the new requirement for LLCs,known as the beneficial
(00:48):
information or beneficialownership information filing
requirement.
So I kept seeing these posts onFacebook about it and people
saying you know, this issomething that you have to do,
and it seemed kind of scarybecause it appears that some of
the fines and things can bepretty hefty if you don't follow
the filing requirements.
And I was actually gettingready to try and do mine myself
(01:11):
and I got nervous, I got scared,and so I say, let me lean on my
network and reach out tosomeone who, I know for a fact,
will understand this and be ableto explain it to me and also be
able to explain it to you guysand be able to explain it to me
and also be able to explain itto you guys, and just let us
know what to expect, what it isthat we should be doing and how
we can fulfill this requirement.
(01:31):
All right, so I'm so happy tohave on the podcast today Leslie
M Jones.
She is the owner and CPA of LMJones and Associates, a CPA firm
here in Michigan, inSoutheastern Michigan, and she's
highly skilled and dedicatedwith her clients.
She's very knowledgeable abouttax advisory, tax accounting,
(01:53):
financial planning advisoryservices for business owners,
and I know that she's going tobe the perfect person to be able
to give us some goodinformation on this.
So, without further ado, I'mgoing to bring Leslie on.
All right, there she is.
Hey, leslie.
Hey, how are you?
I'm pretty good.
I'm so glad you were able tojoin today.
(02:14):
Thank you so much for takingthe time out of your day to jump
on and just talk about this newrequirement that we got going
on here.
I think I said it right thebeneficial ownership information
.
Is that what it's called?
Leslie (02:31):
Yes, the beneficial ownership information, and it's
a new requirement, particularlyunder the Corporate Transparency
Act, and it's regulated by theFinancial Crimes Enforcement
Network.
Victoria (02:45):
Okay, so can you talk to us a little bit more about,
first of all, who is that?
Who is the Financial CrimesEnforcement Network, and why do
we, as LLC owners or members,should care about that?
Leslie (02:59):
Right.
So why is this relevant?
It's relevant because whatthey're trying to do is
basically identify who are theactual owners of LLCs and
corporations.
They're basically trying topromote more transparency around
the owners in order to sort ofeliminate the illegal activity
(03:22):
that's going on with moneylaundering and financing, like
terrorist crimes and networksand things like that.
Victoria (03:33):
Okay, all right.
So then it's just something.
That's where because I knowit's really easy, at least here
in Michigan it's super easy tostart an LLC.
I mean, I've started I don'tknow how many, so it seems like
they're just trying to maybebuckle down on that, maybe.
Leslie (03:50):
So anybody can have an LLC.
But what they're trying to do,you know it's pretty simple.
When you have an LLC where it'sone owner right, so that's a
single member LLC it's prettyeasy to identify who that owner
is.
So a lot of our LLCs, you knowthat, are legitimate businesses
(04:11):
that are just out here trying tomake a living.
I don't think that we have anyissues to worry about.
They're really just trying toidentify.
When those structures start toget a little bit more difficult
meaning like there's severalshell companies, so this LLC
owns this LLC and LLC B owns LLCD and it's.
(04:34):
It gets a little harder for thegovernment to actually identify
who owns a company who owns acompany.
Victoria (04:49):
Okay, I see.
So do single member LLCs andmulti-member LLCs.
We all have to apply or abideby this requirement.
Leslie (04:55):
Yes, absolutely so.
All LLCs, corporations, smalland medium-sized businesses,
definitely have to submit thisreporting requirement.
Victoria (05:05):
Okay, and so what does that like?
How do you fulfill this?
What do you do?
Because I keep.
I saw all these posts about itand everybody was like sharing
the same post, saying you know,don't forget, you got to file
this if you started.
You know you have an LLC, butnobody said how to do it or
where do you go to do it.
Leslie (05:24):
Right, so I can provide you.
I mean, honestly, it's prettysimple.
You need to have a valid ID itcould be a passport, state ID or
driver's license your name,address of all the owners of the
business and you file it theowners of the business and you
file it and I can provide thelink to the website if you like.
(05:45):
But you provide thatinformation directly to the
financial crimes enforcement.
Their website is in itspecifically for BOI reporting
and this is for so LLCs thatwere formed prior to January 1st
.
You have this entire year towell, you've had this entire
year to submit that filing andthe deadline is January 1st of
(06:10):
2025, but LLCs formed in 2024,.
This filing should be reportedwithin 30 days of the formation
of a corporation or LLC.
Victoria (06:22):
Oh, wow.
So for those who maybe didn'trealize this, that this was a
requirement, and they startedtheir LLC this year and they
have not filed within that 30days.
What happens then?
Leslie (06:36):
So there's, I would say to just get it in as soon as
possible.
There is potential forfinancial, like some penalties.
There may be penalties Becauseit's so new.
It may be a penalty waiver, butmy recommendation is to just
get it in as soon as possible toavoid those penalties.
Victoria (06:58):
And then this is something that we can do on our
own, or should we hire someonelike you to do this for us?
What do you recommend?
Leslie (07:07):
so honestly, it's a pretty simple filing.
I think that most llcs and youknow business owners of the llcs
and corporations theinformation that they're asking
is the ein number for yourbusiness and some personal
information.
If If you have maybe you know alittle difficulty in answering
(07:28):
some of the questions in theportal, then you may.
This is something that my firmhandles for clients if you need
some assistance, but for themost part I think if it's one
owner, maybe even two owners asa partnership, I think it's
something pretty simple.
Like I said before, it gets alittle difficult when you have
(07:52):
multiple LLCs that own that thatare owned by other LLCs okay,
all right, so, and it doesn'tcost anything, I think, to file
this.
Victoria (08:03):
You can just go on and to this website and file it,
okay, um, so then if we don'tfile, then there may be some
financial implications and likewhat type of what I saw?
It seemed like it was prettyexpensive, like what they're
proposing at least.
So maybe this year maybe theywon't do it, but it seemed like
(08:24):
it was kind of high, yeah.
Leslie (08:27):
So you can get fees up to.
I saw anywhere from $500 perday, up to a $10,000.
Fine, oh, wow to a $10,000 finefor noncompliance and the
failure to file, misrepresentingor concealing the requirement,
you could face criminalpenalties.
Victoria (08:49):
Oh, wow, okay, Okay, well, yeah.
So it sounds like it's prettystraightforward and it seemed
like that everybody should beable to fulfill this requirement
pretty easily.
I'm thinking.
Leslie (09:02):
Yeah, I would think so, but if you're, you know,
uncertain about some of thequestions in the portal, I would
definitely encourage you toreach out to your professional
or you know, obviously, my firm.
If you don't work with, youknow a lawyer or a CPA.
Okay, is it long, like is it along form that you have to fill
out, or it's really not and Ican say it takes about, say, if
(09:28):
you're one member or two members.
I don't see it being any longerthan about 30 minutes to
complete it, if that.
Okay, when you're going throughsome of the questions and some
of the terminology may be alittle confusing if you're not
familiar.
Victoria (09:46):
But it's not, it's not a bad filing at all okay, and
then you mentioned that ein, sodo you have to have an ein in
order to file this?
Or, if you have one, you justhave to make sure that you you
it with you.
Leslie (10:00):
Yes, that's correct.
If you don't like, if you're asole proprietor, you can use
your social security.
If you're just an LLC sometimeswe don't use our EIN when we're
doing businesses or justoperating as a sole proprietor
you can definitely use yoursocial security number.
Victoria (10:16):
Okay, so a single member LLC that doesn't have an
EIN, your social security number, okay, so, oh yeah, so a single
member is somebody like like asingle member llc that doesn't
have an eim and just used okay,I see, that's good.
Okay, and then any other typeof business formation need this,
or is this strictly for llc?
So if you have like an s corpor anything like that, yep.
Leslie (10:36):
So a lot of times when you're an S-corp, you are an LLC
or a corporation.
S-corp is mainly just a taxstatus.
Like some, companies aretreated as S-corps for tax
purposes.
There are organizations thatare exempt.
So when we think in terms ofsmall business, medium-sized
(10:57):
businesses, those organizationsare required to file this.
But if you are a publiclytraded corporation or a large
corporation meaning like $5million in revenue, 20 plus
employees you are not requiredto submit this filing.
Nonprofits are not requiredBanks but For purposes of our
(11:19):
conversation, I think mainlymost of our immediate group will
probably be required to followit.
OK.
Victoria (11:28):
OK, well, I think that kind of eases my mind a little
bit, because, like I said, Ijust kept seeing stuff about it,
but I did not see.
It really wasn't clear.
And then when you Google it, ofcourse everything ends up being
, you know, somebody trying tomake some money off of it, and
so you see all these randomwebsites come up and you don't
(11:50):
know which one is the actual onethat you should be following.
So thank you for supplying thelink, for supplying the link,
and I'll be sure to include thatin the show notes for everybody
that's listening, so thatyou'll go to the correct site to
make sure that you get thisfile.
So I just want to recap, then,everything that our listeners
should have when they get readyto do this.
(12:13):
So they definitely have to havetheir ID.
I mean, are you like scanningthis and uploading it too, or
are you just getting theinformation off of it?
Leslie (12:21):
They want an actual copy of this ID.
Victoria (12:25):
OK, so your ID or your passport, whatever
identification you're using Ifyou have an EIN, you want to
have that number.
For some people, maybe they gottheir EIN when they first got
their LLC.
They maybe don't know it.
How can they get like areplacement?
Do you just call the IRS andget another one?
Leslie (12:44):
Yes, so you'll have to call the IRS and request them to
send you a copy of that form,where it has your ID and filing
requirements.
Victoria (12:54):
Okay, do you need to upload that form to this filing
system, or you just need thenumber?
You just need the number.
Leslie (13:01):
Ok, I mean honestly, if you've been filing your taxes
and if you use your EIN forbusiness and any kind of
capacity you know, it shouldn'tbe hard to find.
Victoria (13:11):
OK, so they need the ID, their EIN.
Is there anything else thatthey should have prepared?
Any type of financial documentsor anything they should have
ready else that they should haveprepared, like any type of
financial documents or anythingthey should have ready.
Leslie (13:22):
No, just one of the things that stood out was so say
, if you are like the legal nameof the business and if you're
using like a trade name or a DBA, just have all that information
ready to input into that system.
Victoria (13:37):
Okay, and so no filing number.
Like I know, here in Michiganwe have that number like your
file number with Laura orwhatever your state agency is.
That you know, licenses, theLLC.
You don't need any of that.
No, no, okay, okay, okay, allright.
Well, it sounds pretty goodthen.
Okay, so I feel a little biteasier, better about logging on
(14:02):
and doing it.
Leslie (14:03):
Yeah, it's new, so a lot of people are, you know, have
been a little nervous about it,but I would say take a shot at,
you know trying to.
You know send in the report andif not, then you know reach out
if you.
You know, if you don'tunderstand some of the
terminology.
Victoria (14:20):
Okay, All right, and you'll be able.
You'll be sure to include yourinformation so I'll have that
for people.
So if they have any questionsabout anything, they can
definitely reach out to you andto your team to help them with
some of that terminology,because I know that I feel like
some people that have LLCs theyjust get them and don't really
think about everything that isinvolved in it.
(14:43):
Like, in addition to that, wehave the annual reporting that's
getting ready to come up and Iknow sometimes people don't do.
I'm guilty of that.
I've done that in the pastDidn't know what it was.
I got my LLC, didn't know whatit was and didn't file my annual
report.
Then I went into not goodstanding.
Then you got to file all theold ones and file another form
(15:04):
to get back in good standing andit was with the previous LLC
that I had.
So but those are things thatyou can do also with the junior.
Team does as well, absolutely.
Team does as well, absolutelyOkay.
Leslie (15:17):
Yeah, and just kind of to piggyback off.
You know the annual report andsometimes when you are applying
for maybe a city or a stategrant, if you're not in good
standing then you won't evenqualify to even apply for that
grant.
So you have to you know makesure we're keeping up with all
of our requirements formaintaining a solid business.
Victoria (15:39):
Yeah, can we just talk about the annual report real
quick before we finish?
Because when you hear annualreport, right, I was like, oh my
God, I don't have.
You know, I started.
This was like 10 years ago.
I started an LLC.
I wasn't really doing anythingwith it, I had it.
Okay, I have an LLC.
And when you hear annual report, I'm thinking like this big,
(16:01):
huge thing, you want my bankstatements and everything, what,
at least here in Michigan?
What's the annual report?
Let the people know what theannual report is.
Leslie (16:10):
The annual report is just basically you going to the
state and saying year over year,yes, I'm still in operation,
yes, these still are the members, or I am still the only member
that owns this or is operatingthis LLC, updating any address
information or if your residentagent changed, and that's it.
(16:31):
You're basically just lettingthe state know hey, I'm still
operating in the state ofMichigan.
It's really as simple as that.
It's no financial information.
The fee, depending on the typeof organization you have, could
be anywhere from 10 to 25 or $50a year, and that's it.
Victoria (16:48):
Yeah, and when I found that out and I had realized I
don't have that LLC anymore, butwhen I realized that I had I
mean it was years I had to likeand I realized that I had I mean
it was years I had to like Iwant to say I had to complete
maybe like eight or nine of themand then you had to file the
other form to get therestoration of good standing,
which was like $50.
(17:09):
So, yeah, so I ended upspending about $500 to get that
back in good standing, when I'mlike I could have just spent
this 25 every year.
If I have just known that thisannual report is literally like
a one-page document that I'mjust saying, yep, I'm still
victoria and yep, this is stillthe name, is just me, and I'm
(17:31):
still here in michigan and youknow what they sent.
Leslie (17:35):
Just make sure on the site when you go in, just make
sure the email is currentbecause they'll send you a
reminder.
Starting, I want to say,november.
They start sending a reminderto say, hey, your annual report
for 25 is due by February.
Victoria (17:49):
So just make sure To your register agent and I think
I was using.
It was a mess, but yeah, that'swhy we have people like you to.
They're supposed to set thesethings up for us.
So that is done the right way,because you can be your own
register agent.
But if you don't understandthese things or if you're not,
(18:09):
like you said, checking youremail, you're just using a
random email, you will missthese communications from them
and it can end up costing a lotof money to get this stuff back
situated.
Absolutely All right, well,perfect.
Thank you so much, leslie, forjumping on real quick to give
everybody that information.
I will include Leslie'sinformation in the show notes
(18:32):
for this episode.
You'll be able to find all theshow notes and a full
transcription of this episode,as well as the link to the BOI
filing at my website,thepeercollectivecom slash
podcast.
You'll see the episode thereand if you have any questions as
you're filling out your BOIinformation form, be sure to
reach out to Leslie and she andher team will be more than happy
(18:53):
to assist you.
Thank you, guys, so much forlistening in and I'll catch you
on the next episode.
Welcome to the Web Design and Marketing Diaries
podcast, where we discuss onlinestrategies designed to help you
grow your business and standout in your industry.
All right, thank you, guys somuch for joining this special
episode of the Web Design andMarketing Diaries podcast.
Thank you, guys, so much forjoining this special episode of
the Web Design and MarketingDiaries podcast.
(00:24):
I'm really excited about thisepisode here because I have a
special guest that's going to bejoining me talking about
something that I'm sure manybusiness owners have heard about
over probably all of this yearI think I probably started
hearing about it mostly at thebeginning of this year and that
is the new requirement for LLCs,known as the beneficial
(00:48):
information or beneficialownership information filing
requirement.
So I kept seeing these posts onFacebook about it and people
saying you know, this issomething that you have to do,
and it seemed kind of scarybecause it appears that some of
the fines and things can bepretty hefty if you don't follow
the filing requirements.
And I was actually gettingready to try and do mine myself
(01:11):
and I got nervous, I got scared,and so I say, let me lean on my
network and reach out tosomeone who, I know for a fact,
will understand this and be ableto explain it to me and also be
able to explain it to you guysand be able to explain it to me
and also be able to explain itto you guys, and just let us
know what to expect, what it isthat we should be doing and how
we can fulfill this requirement.
(01:31):
All right, so I'm so happy tohave on the podcast today Leslie
M Jones.
She is the owner and CPA of LMJones and Associates, a CPA firm
here in Michigan, inSoutheastern Michigan, and she's
highly skilled and dedicatedwith her clients.
She's very knowledgeable abouttax advisory, tax accounting,
(01:53):
financial planning advisoryservices for business owners,
and I know that she's going tobe the perfect person to be able
to give us some goodinformation on this.
So, without further ado, I'mgoing to bring Leslie on.
All right, there she is.
Hey, leslie.
Hey, how are you?
I'm pretty good.
I'm so glad you were able tojoin today.
(02:14):
Thank you so much for takingthe time out of your day to jump
on and just talk about this newrequirement that we got going
on here.
I think I said it right thebeneficial ownership information
.
Is that what it's called?
Leslie (02:31):
Yes, the beneficial ownership information, and it's
a new requirement, particularlyunder the Corporate Transparency
Act, and it's regulated by theFinancial Crimes Enforcement
Network.
Victoria (02:45):
Okay, so can you talk to us a little bit more about,
first of all, who is that?
Who is the Financial CrimesEnforcement Network, and why do
we, as LLC owners or members,should care about that?
Leslie (02:59):
Right.
So why is this relevant?
It's relevant because whatthey're trying to do is
basically identify who are theactual owners of LLCs and
corporations.
They're basically trying topromote more transparency around
the owners in order to sort ofeliminate the illegal activity
(03:22):
that's going on with moneylaundering and financing, like
terrorist crimes and networksand things like that.
Victoria (03:33):
Okay, all right.
So then it's just something.
That's where because I knowit's really easy, at least here
in Michigan it's super easy tostart an LLC.
I mean, I've started I don'tknow how many, so it seems like
they're just trying to maybebuckle down on that, maybe.
Leslie (03:50):
So anybody can have an LLC.
But what they're trying to do,you know it's pretty simple.
When you have an LLC where it'sone owner right, so that's a
single member LLC it's prettyeasy to identify who that owner
is.
So a lot of our LLCs, you knowthat, are legitimate businesses
(04:11):
that are just out here trying tomake a living.
I don't think that we have anyissues to worry about.
They're really just trying toidentify.
When those structures start toget a little bit more difficult
meaning like there's severalshell companies, so this LLC
owns this LLC and LLC B owns LLCD and it's.
(04:34):
It gets a little harder for thegovernment to actually identify
who owns a company who owns acompany.
Victoria (04:49):
Okay, I see.
So do single member LLCs andmulti-member LLCs.
We all have to apply or abideby this requirement.
Leslie (04:55):
Yes, absolutely so.
All LLCs, corporations, smalland medium-sized businesses,
definitely have to submit thisreporting requirement.
Victoria (05:05):
Okay, and so what does that like?
How do you fulfill this?
What do you do?
Because I keep.
I saw all these posts about itand everybody was like sharing
the same post, saying you know,don't forget, you got to file
this if you started.
You know you have an LLC, butnobody said how to do it or
where do you go to do it.
Leslie (05:24):
Right, so I can provide you.
I mean, honestly, it's prettysimple.
You need to have a valid ID itcould be a passport, state ID or
driver's license your name,address of all the owners of the
business and you file it theowners of the business and you
file it and I can provide thelink to the website if you like.
(05:45):
But you provide thatinformation directly to the
financial crimes enforcement.
Their website is in itspecifically for BOI reporting
and this is for so LLCs thatwere formed prior to January 1st
.
You have this entire year towell, you've had this entire
year to submit that filing andthe deadline is January 1st of
(06:10):
2025, but LLCs formed in 2024,.
This filing should be reportedwithin 30 days of the formation
of a corporation or LLC.
Victoria (06:22):
Oh, wow.
So for those who maybe didn'trealize this, that this was a
requirement, and they startedtheir LLC this year and they
have not filed within that 30days.
What happens then?
Leslie (06:36):
So there's, I would say to just get it in as soon as
possible.
There is potential forfinancial, like some penalties.
There may be penalties Becauseit's so new.
It may be a penalty waiver, butmy recommendation is to just
get it in as soon as possible toavoid those penalties.
Victoria (06:58):
And then this is something that we can do on our
own, or should we hire someonelike you to do this for us?
What do you recommend?
Leslie (07:07):
so honestly, it's a pretty simple filing.
I think that most llcs and youknow business owners of the llcs
and corporations theinformation that they're asking
is the ein number for yourbusiness and some personal
information.
If If you have maybe you know alittle difficulty in answering
(07:28):
some of the questions in theportal, then you may.
This is something that my firmhandles for clients if you need
some assistance, but for themost part I think if it's one
owner, maybe even two owners asa partnership, I think it's
something pretty simple.
Like I said before, it gets alittle difficult when you have
(07:52):
multiple LLCs that own that thatare owned by other LLCs okay,
all right, so, and it doesn'tcost anything, I think, to file
this.
Victoria (08:03):
You can just go on and to this website and file it,
okay, um, so then if we don'tfile, then there may be some
financial implications and likewhat type of what I saw?
It seemed like it was prettyexpensive, like what they're
proposing at least.
So maybe this year maybe theywon't do it, but it seemed like
(08:24):
it was kind of high, yeah.
Leslie (08:27):
So you can get fees up to.
I saw anywhere from $500 perday, up to a $10,000.
Fine, oh, wow to a $10,000 finefor noncompliance and the
failure to file, misrepresentingor concealing the requirement,
you could face criminalpenalties.
Victoria (08:49):
Oh, wow, okay, Okay, well, yeah.
So it sounds like it's prettystraightforward and it seemed
like that everybody should beable to fulfill this requirement
pretty easily.
I'm thinking.
Leslie (09:02):
Yeah, I would think so, but if you're, you know,
uncertain about some of thequestions in the portal, I would
definitely encourage you toreach out to your professional
or you know, obviously, my firm.
If you don't work with, youknow a lawyer or a CPA.
Okay, is it long, like is it along form that you have to fill
out, or it's really not and Ican say it takes about, say, if
(09:28):
you're one member or two members.
I don't see it being any longerthan about 30 minutes to
complete it, if that.
Okay, when you're going throughsome of the questions and some
of the terminology may be alittle confusing if you're not
familiar.
Victoria (09:46):
But it's not, it's not a bad filing at all okay, and
then you mentioned that ein, sodo you have to have an ein in
order to file this?
Or, if you have one, you justhave to make sure that you you
it with you.
Leslie (10:00):
Yes, that's correct.
If you don't like, if you're asole proprietor, you can use
your social security.
If you're just an LLC sometimeswe don't use our EIN when we're
doing businesses or justoperating as a sole proprietor
you can definitely use yoursocial security number.
Victoria (10:16):
Okay, so a single member LLC that doesn't have an
EIN, your social security number, okay, so, oh yeah, so a single
member is somebody like like asingle member llc that doesn't
have an eim and just used okay,I see, that's good.
Okay, and then any other typeof business formation need this,
or is this strictly for llc?
So if you have like an s corpor anything like that, yep.
Leslie (10:36):
So a lot of times when you're an S-corp, you are an LLC
or a corporation.
S-corp is mainly just a taxstatus.
Like some, companies aretreated as S-corps for tax
purposes.
There are organizations thatare exempt.
So when we think in terms ofsmall business, medium-sized
(10:57):
businesses, those organizationsare required to file this.
But if you are a publiclytraded corporation or a large
corporation meaning like $5million in revenue, 20 plus
employees you are not requiredto submit this filing.
Nonprofits are not requiredBanks but For purposes of our
(11:19):
conversation, I think mainlymost of our immediate group will
probably be required to followit.
OK.
Victoria (11:28):
OK, well, I think that kind of eases my mind a little
bit, because, like I said, Ijust kept seeing stuff about it,
but I did not see.
It really wasn't clear.
And then when you Google it, ofcourse everything ends up being
, you know, somebody trying tomake some money off of it, and
so you see all these randomwebsites come up and you don't
(11:50):
know which one is the actual onethat you should be following.
So thank you for supplying thelink, for supplying the link,
and I'll be sure to include thatin the show notes for everybody
that's listening, so thatyou'll go to the correct site to
make sure that you get thisfile.
So I just want to recap, then,everything that our listeners
should have when they get readyto do this.
(12:13):
So they definitely have to havetheir ID.
I mean, are you like scanningthis and uploading it too, or
are you just getting theinformation off of it?
Leslie (12:21):
They want an actual copy of this ID.
Victoria (12:25):
OK, so your ID or your passport, whatever
identification you're using Ifyou have an EIN, you want to
have that number.
For some people, maybe they gottheir EIN when they first got
their LLC.
They maybe don't know it.
How can they get like areplacement?
Do you just call the IRS andget another one?
Leslie (12:44):
Yes, so you'll have to call the IRS and request them to
send you a copy of that form,where it has your ID and filing
requirements.
Victoria (12:54):
Okay, do you need to upload that form to this filing
system, or you just need thenumber?
You just need the number.
Leslie (13:01):
Ok, I mean honestly, if you've been filing your taxes
and if you use your EIN forbusiness and any kind of
capacity you know, it shouldn'tbe hard to find.
Victoria (13:11):
OK, so they need the ID, their EIN.
Is there anything else thatthey should have prepared?
Any type of financial documentsor anything they should have
ready else that they should haveprepared, like any type of
financial documents or anythingthey should have ready.
Leslie (13:22):
No, just one of the things that stood out was so say
, if you are like the legal nameof the business and if you're
using like a trade name or a DBA, just have all that information
ready to input into that system.
Victoria (13:37):
Okay, and so no filing number.
Like I know, here in Michiganwe have that number like your
file number with Laura orwhatever your state agency is.
That you know, licenses, theLLC.
You don't need any of that.
No, no, okay, okay, okay, allright.
Well, it sounds pretty goodthen.
Okay, so I feel a little biteasier, better about logging on
(14:02):
and doing it.
Leslie (14:03):
Yeah, it's new, so a lot of people are, you know, have
been a little nervous about it,but I would say take a shot at,
you know trying to.
You know send in the report andif not, then you know reach out
if you.
You know, if you don'tunderstand some of the
terminology.
Victoria (14:20):
Okay, All right, and you'll be able.
You'll be sure to include yourinformation so I'll have that
for people.
So if they have any questionsabout anything, they can
definitely reach out to you andto your team to help them with
some of that terminology,because I know that I feel like
some people that have LLCs theyjust get them and don't really
think about everything that isinvolved in it.
(14:43):
Like, in addition to that, wehave the annual reporting that's
getting ready to come up and Iknow sometimes people don't do.
I'm guilty of that.
I've done that in the pastDidn't know what it was.
I got my LLC, didn't know whatit was and didn't file my annual
report.
Then I went into not goodstanding.
Then you got to file all theold ones and file another form
(15:04):
to get back in good standing andit was with the previous LLC
that I had.
So but those are things thatyou can do also with the junior.
Team does as well, absolutely.
Team does as well, absolutelyOkay.
Leslie (15:17):
Yeah, and just kind of to piggyback off.
You know the annual report andsometimes when you are applying
for maybe a city or a stategrant, if you're not in good
standing then you won't evenqualify to even apply for that
grant.
So you have to you know makesure we're keeping up with all
of our requirements formaintaining a solid business.
Victoria (15:39):
Yeah, can we just talk about the annual report real
quick before we finish?
Because when you hear annualreport, right, I was like, oh my
God, I don't have.
You know, I started.
This was like 10 years ago.
I started an LLC.
I wasn't really doing anythingwith it, I had it.
Okay, I have an LLC.
And when you hear annual report, I'm thinking like this big,
(16:01):
huge thing, you want my bankstatements and everything, what,
at least here in Michigan?
What's the annual report?
Let the people know what theannual report is.
Leslie (16:10):
The annual report is just basically you going to the
state and saying year over year,yes, I'm still in operation,
yes, these still are the members, or I am still the only member
that owns this or is operatingthis LLC, updating any address
information or if your residentagent changed, and that's it.
(16:31):
You're basically just lettingthe state know hey, I'm still
operating in the state ofMichigan.
It's really as simple as that.
It's no financial information.
The fee, depending on the typeof organization you have, could
be anywhere from 10 to 25 or $50a year, and that's it.
Victoria (16:48):
Yeah, and when I found that out and I had realized I
don't have that LLC anymore, butwhen I realized that I had I
mean it was years I had to likeand I realized that I had I mean
it was years I had to like Iwant to say I had to complete
maybe like eight or nine of themand then you had to file the
other form to get therestoration of good standing,
which was like $50.
(17:09):
So, yeah, so I ended upspending about $500 to get that
back in good standing, when I'mlike I could have just spent
this 25 every year.
If I have just known that thisannual report is literally like
a one-page document that I'mjust saying, yep, I'm still
victoria and yep, this is stillthe name, is just me, and I'm
(17:31):
still here in michigan and youknow what they sent.
Leslie (17:35):
Just make sure on the site when you go in, just make
sure the email is currentbecause they'll send you a
reminder.
Starting, I want to say,november.
They start sending a reminderto say, hey, your annual report
for 25 is due by February.
Victoria (17:49):
So just make sure To your register agent and I think
I was using.
It was a mess, but yeah, that'swhy we have people like you to.
They're supposed to set thesethings up for us.
So that is done the right way,because you can be your own
register agent.
But if you don't understandthese things or if you're not,
(18:09):
like you said, checking youremail, you're just using a
random email, you will missthese communications from them
and it can end up costing a lotof money to get this stuff back
situated.
Absolutely All right, well,perfect.
Thank you so much, leslie, forjumping on real quick to give
everybody that information.
I will include Leslie'sinformation in the show notes
(18:32):
for this episode.
You'll be able to find all theshow notes and a full
transcription of this episode,as well as the link to the BOI
filing at my website,thepeercollectivecom slash
podcast.
You'll see the episode thereand if you have any questions as
you're filling out your BOIinformation form, be sure to
reach out to Leslie and she andher team will be more than happy
(18:53):
to assist you.
Thank you, guys, so much forlistening in and I'll catch you
on the next episode.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.