There are 23 distinct types of entities which are exempt from the obligations to report beneficial ownership information. These include publicly traded companies meeting specific criteria, numerous nonprofits, and certain large operating companies.
The most common exemption is the "large operating company" exemption, which necessitates that a business has both, 20 or more full-time employees, and $5 million or more in U.S. sourced revenue on its last business tax return to qualify and has a physical location in the US.
The list below provides an overview of the 23 available exemptions:
- Securities reporting issuer required to file supplementary and periodic information under section 15(d) of the Securities Exchange Act of 1934.
- Company that exerts governmental authority on behalf of a State or Tribe.
- Registered Bank
- Registered Credit union
- Registered depository institution holding company
- Registered money services business
- SEC-registered broker or dealer in securities
- SEC registered securities exchange or clearing agency
- Company registered under the Commodity Exchange Act
- SEC-registered investment company or investment adviser
- SEC-registered venture capital fund adviser
- Registered Insurance company
- State-licensed insurance producer
- Commodity Exchange Act registered entity
- Registered accounting firm
- Public utility company
- Financial market utility company designated by the Financial Stability Oversight Council.
- Pooled investment vehicle operated by an SEC registered person
- Tax-exempt entity
- Entity that exclusively exists to provide financial assistance or governance to a tax-exempt entity.
- Entity 100% owned by an exempt entity
- Inactive entity created before 1/1/2020 that holds no assets, is not engaged in any business, has no foreign owners, and has not sent or received money or changed ownership in the prior 12 months.
- Large operating company
FinCEN regulations DO NOT automatically exempt churches from BOI reporting if they do not have a determination letter. Therefore, churches that have operated as a 501(c)(3), but under the presumption of tax-exemption, ARE required to file their BOI information and future updates.
Before determining your company's exemption status, carefully review the criteria associated with each exemption. Alternatively, use the Exemption Tool for assistance.