Nearly all U.S. companies, corporations, LLCs, trusts, and similar entities are considered reporting companies and must file beneficial ownership information reports with FinCEN to avoid penalties. A reporting company is any company formed or registered in a U.S. state or tribal jurisdiction without an exemption from BOI reporting. If you have an ownership interest in a small U.S. company, you likely own a reporting company.
Although there are 23 exemptions from filing BOI reports, they rarely apply. The most common exemption is for “large operating companies” that meet three specific conditions: (1) over $5,000,000 in gross receipts or sales, (2) more than 20 full-time employees, and (3) an operating presence at a U.S. office location. All conditions must be met for this exemption.
The remaining 22 exemptions apply to highly-regulated industries, including U.S. banks, domestic credit unions, securities issuers, registered money-transmitting businesses, state-regulated insurance companies, public accounting firms, financial market utility companies, tax-exempt entities and their subsidiaries or entities assisting them, and inactive entities.
These exemptions exist because the relevant agencies already possess their beneficial ownership information.
Don’t risk non-compliance and costly penalties; use our user-friendly online tool now to quickly determine if your business needs to file a beneficial ownership report with FinCEN.
