Roundtable talks  - Navigating Income and Entities with a FINRA Focus - an ems exclusive

Rules & Regulations of BD Revenue

Navigating revenue received from a Broker Dealer can be a little tricky. FINRA requires that a BD pay an individual and not an entity. In order for an individual to sweep income into the entity properly and enjoy taxation at the enterprise level, specific documentation and steps are necessary.

The benefits of maintaining this flow of income properly and compliantly include:

  • Tax treatment at the entity level, rather than the individual level
  • Centralized cash flow through the entity for ALL sources of revenue
  • Support of strong compensation structure including wages, bonuses, and profit sharing

In this exclusive Roundtable Talk, our experts discuss this regulated flow of revenue from a Broker Dealer as well as how to properly sweep it into the entity. They cover appropriate documentation between advisor and entity as well as avoiding common troublesome situations when it comes to BD revenue.

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