This New Law Will Leave Your Business BROKE… DO THIS NOW

Needs to hear this message. This is absolutely critical. There's a new law being passed. Sorry. Been passed. And it's effective in six weeks, January 1st. This law was passed three years ago, called the CTA, the Corporate Transparency Act. If you don't believe me, get down in the description below. I've been talking about it all week and people are like, you can't be real. This is a scam. No, no, no. The link's down below. Federal government, Treasury Department. I'm a cpa, an attorney, author. I help clients all over the country. We have an incredible team that has been in business for over 25 years, helping small business owners. If you have an LLC, if you have a corporation, an LP, an LLP, a PLLP, any entity set up with the state, you are now required to make, to issue, to report. It's called the BOI, the beneficial interest report starting January 1st. For anybody that has an any. We're talking over 40 million LLCs in America. You have got to file this report with FinCEN come January 1st. If you don't, if you do not file it by the end of next year. And any new entity next year has to file within 90 days. That's a proposed reg. You might see in the rules on the federal website. It says 30 days. There's a proposed reg for 90 days, but you've got to report this next year. And if you don't, the penalty, $500 a day or federal prison for two years and a $10,000 penalty. People, this is serious. It can run your business. It can run you out of business. You've got to take it seriously. And I know, I know you feel like. What about my privacy? I've got to disclose my driver's license, my home address, my passport, my Social Security number to the federal government people. The IRS already has it. The sister to the IRS is FinCEN, the Federal Enforcement Network. This network, Federal crimes enforcement network, FinCEN is going to be gathering this data and comparing it with the irs. This is absolutely critical for small business owners to report this, but it's private. And I know that seems weird. You don't want to give up this information. It's private in the sense that the federal government is the only one that's going to have it. I can still help my clients protect their assets, hide their names off their LLCs, their corporations, help them run their business, not sharing their home address, but the federal government's going to have it. Now, if you would like to ask a question, please type it down below. If you think I'm crazy if you think I'm fear mongering. I'm not trying to scare you. I'm trying to let you know the importance of this. It is absolutely real and it's a law that was passed three years ago and it rolls out in six weeks. Now, why did this happen? Why did it happen? Please put your questions down below. Why this happened is the Republicans and Democrats. Don't blame the Democrats who usually pass more laws for business owners. Don't blame the Republicans. Both parties came together and said, we are sick and tired of criminals, human traffickers, drug dealers, money launderers, terrorists using LLCs in America and hiding behind them. You may have experienced this yourself. You get ripped off on some phone call or a letter in the mail and you look down below and you look up the llc, the owner's gone. You don't know who owns it. Boom. Gone. You don't know who the managers are. People have been playing this game with LLCs and EINs and bank accounts for years and, and the federal government three years ago begged by the Justice Department saying, we can't prosecute these people because we can't find them. We have got to stop this loophole. So both parties came together and passed it and said, you know what? We the people, you and me, business owners, it's now our responsible to file this BOI Beneficial Owner Interest report initially by next year and then report any changes in perpetuity. You got to let them know, just like the irs, if your address changed, you're going to be reporting this on a regular basis to the federal government. If you're a small business owner and they want to find out which businesses are legit and anybody doesn't report to FinCEN, they're going at them. That's it. That's the new law I hate. Don't hate the player, just hate the game. I'm sorry, this is it and it sucks because of people that take advantage of the system. So we collectively as business owners have to file this report. Now. We have a. We've been gearing up for this for a year and a half. Our law firm has been doing company maintenance for clients for 12 years. We have a team. This is not to be an infomercial. I'm just saying if some of you are like, where do I go? Do I, how do I do this? You'll be able to do it yourself if you want come January 1st. On the fincen.gov website, there's a procedure that will be released, but you're going to Reporting your company's address, your personal information, and all this stuff through a special form starting January 1st, we'll have for a couple hundred bucks, we're going to be doing your reports to the state, your minutes, your FinCEN report, and any updates and tracking all your information. We have thousands of clients that already use us for this because they don't want to deal with it. But watch out for scam artists that want to charge you exorbitant rates, or they're just going to file your FinCEN and leave. You want someone to track it, maintain it, and report changes for you in the future. So the gist of it is it's a little more red tape. It's a little more paperwork for having a small business. Yes, but the serious part, you don't comply. 500 a day, two years in prison, $10,000 fine. It's legit. So we've got to be really, really careful and make sure that we are on top of this and that we are taking care of business as a small business owner. So let's see if there's some more questions. I can start unpacking this. I know I can see right here on the feed. Lots of questions. I've got Dylan here in the studio. I'm here for you. I've got 58 pages from the federal website on this, and this isn't even the full law. And so let's see what we can do here. Dylan, what do we got?

First question is From Jonathan on YouTube, and his question is, does this apply to sole props as well?

Well, sole props is a tax designation, which means you can just start your business tomorrow. A single member LLC would still report as a sole prop, But I think what Jonathan's asking is, I don't have an llc. I don't have a corporation. I'm just a sole prop. Do I have to report anything? No, you do not. Now, if you're a sole prop, I'll tell you, I've been talking about this for years. You, I don't know what you're paying in taxes. And if you have liability exposure, an LLC could be a perfect fit for you. You want to be really conscientious of that. But sole proprietorships do not have to report you're clean. What's up? Next question, Dylan.

Next question is from Lily on Facebook, and she asks, how does this work for military spouses that live in one state? Due to orders, my driver's license is not up to date.

Well, on this BOI report, the beneficial owners have to report Their home street address. This is not a P.O. box thing. And some of you playing games with the IRS saying, oh, well, I live in Nevada, but really you live in freaking California and you're trying not to pay California tax. Oh, I live in Oregon. I live in Washington state. Really, you live in Oregon and you're playing games? It's going to be a reality check because if you lie on this report, you are penalties of perjury. The $500 a day penalties, prison. This is not good. Now, the beneficial ownership. So this question's unique because. So husband and wife both own the entity. Okay, so that's 50. 50. They would both report their home address if they're different. Now, I know people's home addresses can change. And you may say, well, I have three homes. Well, you're going to choose the one that you sleep in the most. That's what your primary residence rule is with the irs anyway, wherever you put your head on a pillow the most, that's your home address. Well, I have an address in another state that has no state tax. Well, maybe that game's going to. That gig's over, you know, because you're either going to have to. You've been lying to the state, you've been getting away with it with the IRS because they don't care what state you're in. That's federal tax. Now you're going to the federal level now of the Treasury Department saying, this is my home address. It better match up with the states. And they're going to be checking, they're going to be cross checking. But no military spouses, whatever. Multiple homes. Just choose your most primary residence, put it on the report. Next.

Next question is From Drew on YouTube and he asks, so when can you submit the info?

January 1st. Vincent is releasing the online portal to do this. Now. Everybody thinks this is, oh, I just report once I'm done. Once I'm done. If you have a change in your home address, a change in the company address, or a change in the ownership of the company, or you put someone else on as manager of your LLC, any of those four things, you have to report to FinCEN within 30 days or $500 a day, two years in prison. They are not messing around. So this is just, it's not like, oh, I'll file the report. I'm done. You want to have a maintenance system tracking this? There. Oh, something changed, File the report. And you got to be on it. You got to be on it. So if you open a new entity next year, you have 90 days to report it. Now, I'm going to repeat this for everybody. If you have an LLC, you might have five LLCs. You have to do this for each one. Oh, well, my trust owns it. Doesn't matter. You look through the trust. Who's the grantor of the trust? You, your spouse, both of you. That's what goes on the report. There's no way around this. There's 23 exemptions. 22 and a half of them are for big companies. US small business owners, we're the ones filing. We're the ones filing. Next question, Dylan.

Next question comes From Mike on YouTube and he asks, doesn't the state already have this information? Why don't they get that info from each state?

Ooh, Mike, great question. Do you know I can file you in six different states right now? I don't even have to list you as a manager. I don't have to list your home address, and I don't even have to list the owners of the llc. That's what I can do as a lawyer right now. And we do it every day because I want to protect your privacy when you own a rental property. I do it every day. There's nothing wrong with that. But states, 80% of the states, they don't even know who owns the llc. All they have is a manager maybe and a registered agent. And we service registered agent for over 10,000 companies, so we're already providing privacy for clients. So, Mike, you want to be hidden from public record, I got you. But with the feds, you can't do that. They can't call the state and find this information out. So now they're saying, self report. I got to get the report. I got to have your boi. Now you got to throw down the boi or it's not good. Next question.

Dylan, Next question From Stacy on YouTube asks, Is this required for S Corps?

Yes, Stacy, it's required for S. Corporations. And that's any of you that are an inc, a PC, a pllc, or an LLC with an S election. All of you. Me. Me, too. Now, this is a good point, Stacy. I will bring up two exceptions as you want to get into it. There's 23 exceptions. 21 of them are ridiculous. They're all for huge companies. I don't even qualify in any of those either. The two you might qualify in is first, the inactive llc. Some of you might have an entity that you set up you don't even use anymore. So you can say, well, I'm inactive. Well, does FinCEN know that you Better dissolve the entity and make sure you're not on their radar, but you're inactive if you don't want to file the report. If you meet this criteria, it had to be set up before January 1, 2020, so before COVID hit. This is an entity you set up before COVID and you have not. It doesn't own any property, any. And you haven't ran $1,000 through the bank account in the last 12 months. So you have no money has gone through the bank account in 12 months. It doesn't own anything. And you set it up over four years ago. Okay, I'm inactive now. I'm going to warn you still kill it, because FinCEN doesn't know that. They don't know. So you could be running $5 million, you know, running money through the car wash, going, walt, I don't know. You know, so we got it. We got to figure out what's going on. Breaking Bad reference, you know, car wash. That an llc. It's good stuff. Okay, second exemption. You're a large operating company. That means you have 20 or more employees and 5 million in sales. 5 million in sales and over 20 employees. There's a third exemption for those people that meet that. Let's say you're a large operating company. I still think you're a small business at that level. But 20 plus employees, 5 million in sales, all the subsidiaries that you own with that same company that was exempt, Those are called 100% disregarded subsidiaries. They're exempt. It's called the subsidiary exemption. Now, you can't say, oh, well, I have an S corp. Was it Stacy? I have an S corp and it owns an llc. So the LLC is exempt. No, no, no, no. If the parent is not exempt, you're still reporting all the subsidiaries. So the parent has to be exempt than the subsidiaries are. So that's probably the third exemption that could happen. All right, Dylan, next question.

Next question comes from Animate BZ20 on YouTube and they ask, do you have to report this every year moving forward it. Or if nothing changes, do you need to refile?

Okay, good question. You only filed the original boi. And then if there's any changes, remember in the four areas, ownership control, the company address, or your personal address, then you have to report any of those changes. You're going to get a FinCEN identifier number. That FinCEN identifier number is going to be as important as your Social Security number and your EIN for your business, because now you're on FinCEN's radar. And if anything changes, you have to let them know. So you're going to have to do these regular reports. And also, I was just reading this just here on the way to the office today. If you say, oh, I'm exempt now, I don't have to report anymore, the FinCEN is saying, Send us an updated report saying, I'm out, I'm exempt now, or I dissolved my company. Because think about it, FinCEN doesn't know. You may say, I dissolved my entity in New Mexico. Okay, no one told us. So you. You want to be off their radar when you dissolve your entity. Second piece of paperwork we're filing for our clients at our law firm. We charge 200 bucks to dissolve an entity. If you need to get rid of an entity, this is the time to do it. My law firm, KQS Lawyers is down below. Again, not trying to be too salesy here. I just want to be a resource for those that need it. But our law firm files a disillusion will dissolve you with the state. And we're going to send a letter to the IRS and go kill that ein. That ein is now dead. Your electronic identification number. So that way you're dead at the IRS, you're dead at the state. And when FinCEN does its reports, because I'll tell you, January 1, 2025, what are they going to do? They're going to call up their little buddy over at irs, hey, could you send me an Excel spreadsheet of all the active eins you have? Sure. And they're going to email over a little spreadsheet of every LLC in the country that has an active ein. All right? Then they're going to call the 50 Secretary of State, say, hey, Judy, could you send me an email with an Excel spreadsheet of all the LLC in your state? Yeah. Here it comes. And then they're going to drop it into constant contact and they're going to sort it and they're going, okay, we got all these eins at the irs, we got all these companies across the country who didn't report to us. Ooh, that list. Bam. Turn the Department of Justice loose. They're gonna start sending out nasty letters. You got 30 days to cure, 30 days to go. All right, I'm sorry, I forgot to report. Oh, I'm sorry. And you report if you don't. $500 a day, two years in prison, $10,000 fine. Are you getting it? I mean, it sucks. I'm not trying to be scary or fear. Don't hate the player, just hate the Game. I. I'm just reporting the rules, and it's the criminals that caused the problem here. Don't blame the Dems. Don't blame the Republicans. Frickin nay. It's the criminals. All right, sorry. Next question.

Dylan, Next question comes From Steve on YouTube, and he asks where can we go to find out if we have any old LLC still open?

Really good question, people. We're doing this at our law firm right now. We have. We do it every year, but a lot of clients that have small business and real estate and all that. This is a great time of year to clean house anyway, so you might have some entities in states where there's franchise taxes. Texas, Hawaii, Washington, California, Tennessee. Let's make sure we've got our entities cleaned up. So the first place to go if you're going to do this on your own, you know, our paralegals, they'll do searches for us and you and your client. Our clients. And we're not that expensive. But what you'll want to do is go to any state you can think of that you might have filed an entity. Oh, yeah. When I was living in Colorado, me and my buddy, we opened an LLC to open that coffee shop. I wonder if that's still dead or did it die Some states. Arizona. I'm sitting here in Arizona. Isn't it pretty? Look at my little cactus right here. Cacti called a saguaro. That swirl right there is probably 100 years old. You know, it takes 100 years to get that big. Anyway, I'm here in Arizona. If you don't, there's no requirement to pay an annual filing fee in Arizona. Your LLC does not die unless you actively kill it. So some of you out there might have an entity you set up four years ago in Nebraska or Florida. I don't know. You got to go to the Secretary of State where you might have set it up, and look, is it active, voluntarily dissolved, or involuntarily dissolved or what? So if it's kind of in limbo, kill it again. We got a service for it if you need it. Go do it yourself. Whatever. Again. Some people get pissed. I'm trying to sell something here. I'm just saying we're here if you need us. Go get something to get it done. Couple hundred bucks. Knock it out. All right, Dylan, next question.

There are a few people asking this question, and I think you may have already answered it, but I think it's worth asking just.

And I appreciate it, but I am taken. Thank you for all of you ladies out there asking, so I know it's a common question. I appreciate that. Oh, that wasn't it?

No.

Okay, go ahead.

The question is, do trusts having an EIN also or are they also included?

Great question. Trusts are exempt. Now any trust that has an ein, that means an irrevocable trust, which is a whole or animal. But all of us out there have a revocable living trust. That's our little trust that's going to own our llc owner s corp. Own our home. Love it. Young, old, married, single, kids, no kids. You own real estate or small business. You need a trust. Alright. And that doesn't have to be $5,000. Well, I'm not rich enough to have a trust, damn it. You own anything, you need a trust and it can be very affordable. Trusts are exempt. Even if you have an irrevocable trust, meaning mom died and left me a trust and I'm kind of maintaining that trust for mom. It's going to have an ein. But that, you don't have to file that. That is not. That's exempt. Great.

Next question comes from Poppy and he asks, do shareholders with less than 25% ownership have to be reported?

No. Okay. And this is really cool. And you, many of you are going to be able to go to the. If you, you know, for those of you that can't sleep tonight, you can have a blast. Go to any time you can't sleep. I recommend going to any federal website. But you could go to the FinCEN website again. Financial Crimes Enforcement Network. Financial Crimes Enforcement Network. Yeah, there's a new sheriff in town, people come January 1st called FinCEN. Saint Wyatt Earp. All right, so if you go to their website, you're going to see all sorts of little goodies like this. And they're talking about who owns what. Who owns what, who's it. This, this whole section is who is a boi. Who is a beneficial. Who is a bo. Beneficial owner. Doesn't sound great, but a beneficial owners. This goes on for like four pages, five pages, so you can do your own research. This is what we're helping our clients with. Anybody who's like Mark, just freaking file it for me. Talk to you through. Yeah, get your info done. But if you want to go through it, go to the website and you can see. Now here's the rule. Anybody that owns 25% or more of that LLC, LP Inc. Whatever the hell it is, you're an owner, you're going to be on the report. Personal address, driver's license or passport, social on the report. If you're a manager, you may say, well, I have my son or my daughter as a manager of my LLC. But they don't own it. They don't own 25% or more, but they're the manager, they're on it. So if you're, if you have significant control, is an officer of the company, or you own 25% or more, you're on the report. And if those change, that's when you're doing the update Forever. Forever. Sandlot. Thank you. Appreciate that little quote there. Everybody knows sandlot. It's a good one. Okay, Dylan, next question.

Next question comes from Sarah on Facebook and she asks, will this lobby incorporated into programs such as TurboTax and. Or services such as Swift Filings, who manage typical legally legal filings as part of their maintenance?

Who. There are software companies already trying to integrate this. It is kind of like a tax form. You know, it's like a IRS form that it's. But it's going to be going to FinCEN. The tricky part here is that if someone does the report for you, they have to report their personal information, not their company info, their personal info. So that means if your accountant calls you up and says, hey, I'm going to knock out your FinCEN report, the accountant is putting their personal home address on that report. Because the applicant for the BOI cannot be a company, has to be a person. So if it goes into a software, okay, that's cool. If you're doing the report yourself, easy, schmeezy, you're the beneficial owner, blah, blah, blah, you're on TurboTax. TurboTax may say, I can kick out your report for you at the same time, they probably will. But if you're trying to pay someone else to do it, they may or may not have that. Or you may or may not have the software. So this is why I'm out educating. I'm just wanting to give you. I'm going to be talking about this a lot. You're going to get. This is like the PPP program, right? Or the ertc. When Covid hit, we got all these new Ackermans and we all talked about PPP for two years, three years if you're a business owner. Well, I'm going to be talking about CTA for a while. So you're going to have to be getting up to speed to this. You guys, you guys are awesome. You're ahead of the curve. Being here today, you're going to be like, hey, this, you know what? Tonight you could be a hit at your dinner party Friday night, you're going to be out partying and you can be like, hey, let me tell you about the cta. If people start to leave the table where you're at, maybe back off. You know, it may not be a good big seller. I don't know. I'm just trying to help you out. See, I'm a nerd people. I love that. I don't know. Next question.

Dylan, next question. Let's knock out.

Are we having fun? Are you guys having fun? Give me some love in the chat. If you're having. Put the number one in chat. If you're just having fun. All of you nerds out there talking tax and legal. I don't see any ones. It's not looking good. Okay, go ahead, Don. What's up?

Okay, let's knock out two birds with one stone. Lily from Facebook asks, what exactly do they need from you? And Drew asks, what is the website address when it goes live?

Okay, well, the website address, all of you might want to put it in your saved whatever you put it up in your URL, not cookies. Bookmark, Bookmark. Thanks. See, I have to ask my tech team. You want to bookmark it? It's w.fincen.gov boi and it's in the. It's in the description. Whether you're on LinkedIn, Facebook or YouTube, it's down in the description. You can go there right now. That FinCEN BOI, they've already said it will be coming out. There's like a big bar. Some of you that think I'm lying, that I'm being crazy here. Go there and check it out. It's lots of fun. It will be there January 1st. What you're going to report, I will repeat this and maybe I haven't been given the summary quite quickly. There's three parts to the report. Part number one, company name, company address, ein. That's it. That's called the reporting company. And it's now going to get a FinCEN identifier number. Then section two are the beneficial owners or controllers. Anybody that has 25% or more or is an officer, home, address, name, social, and a copy of their driver's license or passport. Then the third piece is the applicant. Who is the applicant? And it has to be a person. So if it's one of the beneficial owners, fine, do it yourself. I don't care. Go knock yourself out. Or if you hire a company, we're going to be out there doing it for a couple hundred bucks. If you hire us, then Our name, personal name of our lawyer and paralegal. Up to two applicants go in there. So anybody that touches that report, Vincent wants to know about it. So we're putting our personal info on that report with our identifier so that they have it. So those are the three pieces. I know. It's not. It's not the end of the world. It's one report, but you have to maintain it. Remember, any changes. Plus, everybody, if you have a freaking entity, you should be doing your annual minutes. You should be reporting to the state, and we do all of that at the same time. Find a company that can do all three or four for you. So you're maintaining this. That. That's the goal. Don't use me. I don't care. But find someone to help you, because it's more than FinCEN. There's all these other pieces. Everything's. Oh, I got an LLC at LegalZoom. I got. I'm good. Yeah. Good luck in court. That's not going to cut it. Gotta have all the pieces. Holy hell. All right, next question.

Dylan, Next question comes From Bobby on YouTube, and he asks, what if you live in an RV and travel around? We're talking, like, work camper.

Oh, I love my work campers. I love RVs. You know, I think today I was in the kitchen. Let's just get an RV and leave. Let's just go. You know, I almost didn't come here today. I was going to be in an rv. Okay? If you're in an rv, you still have to have a state residency. You have to claim one. And I teach to all the RV owners around the country. Now, guess where they're choosing. They are choosing a state that has no state income tax. One of the nine states. I don't have a problem with that. Fine. But if you're going to rent an RV pad in South Texas and stop in there once a year for one day and call that your personal residence. Fine, call that your personal residence. But you can't put a P.O. box in South Dakota. You've got to have a physical home address. Maybe you're going to put your mom's address. Oh, but she's in Massachusetts, and they have state tax. Oh, I can't do that. No more of this vagabond crap. You know, I have a condo in Nevada. That's my home address. And then 99% of the time, you're in Orange county playing tennis. Not gonna cut it, People. Choose your freaking home address. And be honest about it. Sorry, that was harsh. Okay, Next. Still.

Next question comes from ADP SG. And they asked, I filed last, the last 1065 and another 1041 and checked, marked, everything is a final return. Is that enough to declare the ein is dead?

Yes. So if you have done an entity return and check the box, final return, that's equivalent to sending the IRS the kill my ein letter. That letter goes to Cincinnati. You can go to IRS.gov to find it. Again, this isn't hard. It's just time consuming and it's stressful and anxiety and like, I'm sending paperwork to the feds. Did I do it right? That's why people outsource this sort of thing. But if you enjoy it and you're a nerd like me, go embrace it, Get a drink, turn down the lights, turn on some smooth jazz. Knock yourself out. Super fun. Super fun. But you're gonna. You're gonna report this and to the IRS as well, or check the box. Final return. You guys like Smooth Jack? Should we go to smooth Jazz? Yeah. Okay, next question.

Dylan, next question comes From Mike on YouTube and he asks, you said trusts are exempt. You made it sound like the LLC in the trust is also exempt. Can you verify these LLCs are exempt?

Yeah. Can we go whiteboard? All right, we're going whiteboard, people. Now, for those of you that are listening and don't or you're not on YouTube on this. That's cool. This will be recorded on YouTube. Make sure you get over my YouTube channel. The description in the description is my YouTube channel. Hit the bell, icon and subscribe. I go live once a week. So much free content. I want to help my business owners around the country. No one in the country has more podcast downloads, more videos, more blog articles, and more books on Amazon than I do on this topic. Please use me as your first resource and then go find someone you like. If you don't like me, it's cool, right? Okay, so what I teach is called. Oh, and I love it. It's called the trifecta. Now, this trifecta is a diet list. Here we go. This is good right there. So here's the trifecta. And what I do with clients is I divide their lives in two sides. This is answering your question. People, you're going to love this. A picture says a thousand words. Now, whether my client's worth negative or they're worth a million or 100 million, we still use the trifecta. This is your trust. Revocable living trust. Now, I want your trust to own your home. This is your Home over here. That's cool. I want it to own your LLC or your S Corp. So you might have a little side hustle over here. You might have an S Corp. That's cool. Oh, and you have an LLC over here, has some rental property. That's awesome. Oh, you got some life insurance over here. That's awesome. Oh, you got an IRA. Got a little 401K. La la la. All of this should come down into your trust. Now, the trust. I'll put this in red. Does not have to do the BOI report. Does not. Trust is cool. But the trust owns the llc. That's fine. The trust. Oh, I know where you're going with this. That question. Because they're saying the trust is exempt. The trust is not one of the 23 exemptions. The trust is just not an entity. That's a great. I like that little nuance. That was good. What was his name? That was a good question. We ought to send him a free book. Okay, here's. Here's the deal. The trust is not exempt under the 23 exemptions. It's just not an entity. So it's not even. It's not even at the kitchen table. So the trust owns your llc, but the BOI has to be done here. The BOI has to be done here. The BOI has to be done here. So you're doing the report on the entities. The trust just doesn't have to do its own report. And what you're going to say, well, who's the owner of the llc? If this is a husband and wife grantor trust, the husband and wife would be the owners. Well, you go, well, it's a single member llc. That's fine. If I. We're going to be debating with. Based on. If you're in a community property state, we might put both husband and wife on the boi. We also might just put one of the spouses on here if you're reporting to the IRS as a single member. But see, when the trust is the owner, really, husband and wife are both owners. So when in doubt, just throw them both on there. The IRS already knows who you are. Freaking A. All right, so that's what it looks like. The trust is not exempt under the 23 exemptions. It's just not an entity that's required to report. Good question. Great question. All right, maybe a few more. Almost two or three more. All right, thanks, everybody, for being here. Isn't this fun? Hey, if you're loving this, please give me a Get over and give me five Stars share this little video with your buddies on your Instagram or your LinkedIn or if you know an accountant or a lawyer or enrolled agent cpa. I'm training those in my certification program. That's my tribe. I'm not out there on the fringes. I mainstream people. And I just love killer tax strategies, wealth building, asset protection. So thanks for listening today, and please give me five stars. Subscribe. I won't lead you astray. All right, Dylan, next.

A few people have asked on YouTube what this means for privacy when being sued, and they referenced that. It sounds like the lawyers can just turn to this fence in list when suing landlords to identify the owner and bypass the LLC for a lawsuit.

Okay, great question, everybody. Oh, can you switch off whiteboard? Okay, so great question, everybody. What does this mean for privacy now that I've disclosed this to the feds, does that mean some stupid lawyer over here that represents a tenant at one of my rental properties can call up FinCEN, federally protected private information, and get it about who owns the entity? Hell no. Have you even tried to call the IRS and get information on yourself? Good luck. It takes you like three days of multi step verification. Whatever they need to. It's like you got to send in a blood sample. It is impossible to even get my own freaking information out of the IRS sometimes, right? No one can call the feds and get private information about you. You're fine. I'm a lawyer. Trust me. It is hard to get information on any entity without a subpoena or a warrant. And this is what. This is the problem. This is what the enforcement agencies have been dealing with. They can't get through these entities. See. Oh, guys, this is really perceptive. See, let's say you got the FBI or you got DID DEA or Hank. You're. You're Hank and the dea and Albuquerque, right? You Breaking Bad fans, right? You're Hank and you're trying to figure out who owns this llc. You got to get a warrant, you got to find out this. You got to do this if you even have a suspicion that they're committing a crime. But I'm an enforcement agency with the federal government now. I can call up FinCEN as an enforcement agency with a. With a warrant from a judge. I can call FinCEN and go, who really owns this LLC? And FinSen will go, no one. They never report it. We're trying. So, real quick, this is going to start closing the loop on so many people that have been abusing LLC because law enforcement are trying to get to the Bottom of who the money launderers are and the scam artists. It's just. It's Skyler. She couldn't pull this off with the car wash. She couldn't do it. It's going to be tough. All right, Dylan, next.

Next question comes from Becky on Facebook. And she said, if I had an LLC from 10 years ago that was never used, no transactions, nothing other than a deposit to open an account, do I have to do all of this? It was in Oregon, filed in Nevada, but we never did anything with it.

And first name again?

Becky.

Becky, I'm going to ask you a question. I'll assume yes or no, and I will answer it. If I say, hey, Becky, have you looked at the Oregon Secretary of State state website and the Nevada Secretary of State website? And when you go there, does it say dissolved? Okay, if it says dissolved, you're done. You don't have to do anything. But if you say, well, Mark, we haven't done anything with it, but we kept paying the fee to the state because we thought we might use it someday. And that's kind of been a benefit for some people. Some people keep their LLCs around so they can use them sometime. Makes sense, right? If Becky has been paying that fee to Nevada or Oregon and it's still alive, but you haven't used it, here's what you do. You are exempt from under the inactive exemption because you set it up before 2020 and you haven't used it in the last 12 months and it doesn't own anything. Okay? Does that mean you don't report to FinCEN? It means you don't have to. But you be smart. They don't know you're exempt, so you're going to kill it. If you're not using it, you're paying fees to Nevada or Oregon anyway. Go dissolve it and then send a letter to the irs. Kill the ein and go to the bank and close the account. Now, if you said you've done all three things, the IRS knows it's dead, the bank knows it's dead, and the state knows it's dead, you don't have to do anything. But don't trust FinCEN to read your mind. So do your homework and then go that way. Two more questions.

Next question is on YouTube coming again from animatebz20. And they said, won't the criminals just set up an LLC that have a single member owner as a non US Business entity to avoid reporting this information?

First of all, when you set up a new entity starting January 1st, you now have to have your BOI filed within 90 days. So here's what's going to happen. M and A. And this is a great question. Banks, you know what banks are going to ask for? I swear it, I already know it. Because banks want everything anyway. They want the, you know, the social of your firstborn child to open a frickin bank account half the time, right? When you go to open a bank account in January at B of A or Wells Fargo or Chase, they're going to ask for your articles, they're going to ask for your ein, and they're going to say, give us your boi. Well, I don't have to do it for 90 days. You don't have to, but we're not giving you a freaking bank account until you do. Because the banks are sick of this too. They lose money with money launderers. They don't want to deal with this either. FinCEN's been all up their butt. So banks are going to go, give me your ein, give me your articles, and give me your boi. So in this example anime, who'd you say set up the llc? A foreign entity. They're not. That doesn't count. A real person with a home address has to be disclosed in the BOI under penalties of perjury. And if you're fraudulent in the law, they can go after them personally for a federal crime and put them in jail for two years. Who's going to sign that thing? Well, someone in a foreign country. Oh, okay. And then. But who filed the articles in the us that has to be an individual. Now I agree there's a lot to figure out here when people are going to be setting up LLCs with foreign owners and all these. But who's a US manager? They're just trying to close the loop. Is it going to be perfect? No. But hopefully you can get rid of some of these losers. So that's going to be the trick.

Dylan, last question comes from Steven. And you mentioned earlier in this live stream that in 2025 you might get a slap on the wrist and you can throw your hands up and say, I didn't know I needed to report. But Steven's asking, I have to call all of my clients by January 1, 2024. Is there no grace period or is there a year grace period?

Okay, he said January 1, 2024?

Yes.

No. Okay, Steve, great comment. Your clients need to report by the end of 2024. Now I'm trying to be ahead of the curve here because we're signing up clients in Our firm saying, hey, when you do your normal state registration next year, we'll take care of your FinCEN. At the same time, sign up now. Don't worry about it. Be aware. So if you are a practitioner, Steven, and you've got your client list, you've got all of next year to get them in alignment by January 1, 2025, that's when all hell breaks loose. So you got a whole year to get them in compliance. Any new entities, different rule. Right? So you got all year. It's cool. Just. And we, by the way, we have an affiliate program where you can bring your clients over. We'll take care of for you and give you a piece of the action so you don't have to stress about it if you want. So be in touch. All right, everybody, thanks for being here. The American dream is alive and well. I love small business. We can build wealth. We can be private. We can protect our assets from losers out there that want to sue us. We don't have to give up our home address to any. Anyone that we don't want to, except the federal government who already freaking has it. This is the IRS's sister. This is brother sister. They're both in the Treasury Department. Vincen, irs. They just want to close this loop. So we can still be extremely private. We can build wealth. We can live the American dream. It's just an extra damn sheet of paper we got to file. It's not the end of the world, but the penalties are serious. So thanks, everybody for help. Let me get your attention. We've had a busy year. Tax season's over. Now I'm trying to wake up everybody and go, whoa, Something's changing. Come January 1st. New sheriff. So please subscribe. I'll be here every week. Next week I'm not, though. It's Thanksgiving. I'm going to be. I'm in charge of cooking the turkey. I'm debating should I go with the 24 hour brine or deep fry? You know, let me know if you. If you want to let me know in the chat. I generally prefer the brine because you want the whole house smelling like a turkey, right? I mean, that's really one of the special. You want to watch football and smell turkey. That's what we're going for. Deep fry, you don't get there. Thanks for letting me joke around. We got to keep this light. Love you guys. See you again soon.