If your dental practice has fewer than 20 full-time employees & collects less than $5 million per year, you must submit the Beneficial Ownership Information Report (BOIR).
Don’t panic! It’s super easy to complete, and there is no fee. Let’s dive into the BOIR - what it's about, what you need, how to tackle it, and when to check it off your list!
What is the BOIR?
The BOIR was created by the 2021 Corporate Transparency Act, and the reporting requirement went into effect on January 1, 2024.
It’s intended to deter money laundering and the channeling of money to terrorist organizations and human trafficking groups by showing who is behind the companies set up for such nefarious purposes.
Who is Exempt?
Good news for the big guns - if your dental practice has over 20 employees and collects more than $5 million annually, you're exempt. Your ownership is already on the radar, so there is no need for BOIR.
Who's This "Beneficial Owner" Anyway?
"Beneficial Ownership" refers to those who own and control at least 25% of a company. If you're in a partnership, that’s you and your partners. S-corporation? It’s you and anyone holding at least a 25% stake.
What You Need
You will need the exact legal name of your practice, your Tax ID Number, your name, your birthday, and a valid photo ID, such as a passport or driver's license. Note you will need all this information for all the beneficial owners, which will be filed in the same report. So, if you have a partner(s) or a family member(s) with at least 25% ownership, get this information before filling out the report.
If you own property through an LLC, you guessed it, that needs a BOIR, too!
How to Tackle the BOIR
The BOIR is simple to complete and can be done online at https://boiefiling.fincen.gov/fileboir. It only takes about 10 minutes and can be done online, or you can print and mail a physical PDF.
We recommend doing it online via the fillable form and then saving the submission confirmation, but if you mail it, get a tracking number to confirm receipt.
On question one, indicate that this is your Initial Report and follow the prompts. You will be given the option to request a FinCEN ID. It’s best to get one, as this will make it easier to update the BOIR if any changes occur.
When's the BOIR Due?
Here's the tricky part - if your entity existed before January 1, 2024, you've got until January 1, 2025, but why wait? Get it done early. For the newbies created on or after January 1, 2024, you've got a 90-day countdown from the birth of your practice. So, if any of your friends from dental school just started their practice this year, pass on the word!
Why Bother?
There are penalties for slacking off. A $500 daily fine, potential jail time, and a hefty $10,000 fine are on the table. So, avoid the drama and get it done!
Are you feeling a bit lost? Don’t worry; we've got your back! If you're unsure about this BOIR business, give us a shout, and we'll help you. Compliance might sound like a headache, but trust us, it's a breeze once you dive in. You’ve got this, dental rockstars!
References
Collier & Associates, Inc. (2024, February 1). The Collier & Associates, Inc. Doctors’ Newsletter, Volume LII No. 3.
https://www.fincen.gov/boi-faqs#A_1