Reporting Companies May Not Consolidate Employee Headcount Across Affiliated Companies.
The Preamble to the final Beneficial Ownership Information Reporting Requirement regulations (hereafter, “the final regulations”) specifically cites the statutory exemption language, which states that “the determination of the number of employees is to be made on an entity-by-entity basis.”
This is the opposite treatment under prong two of the large operating company exemption, reported gross receipts of $5 million or more in the prior year’s tax return, which allow gross receipts and sales to be consolidated across affiliated companies.
See related article regarding full-time employees