BOI Filing Exemptions: Is Your Business Actually Required to File?

The Large Company Exemption

Requirements to Qualify

To meet this common exemption, your company must have:

• More than 20 full-time employees in the U.S.
• Over $5 million in gross receipts/sales
• A physical office in the United States

Important Notes

• Must meet ALL three criteria
• Based on previous year's tax filing
• Employees must be U.S.-based
• Independent contractors don't count

Regulated Industry Exemptions

Banks and Credit Unions

• FDIC-regulated banks
• State-chartered credit unions
• Federal credit unions
• Bank holding companies

Insurance Companies

• State-licensed insurance companies
• State-licensed insurance producers
• Registered insurance companies

Investment Companies and Advisers

• SEC-registered investment companies
• SEC-registered investment advisers
• Venture capital fund advisers
• Private fund advisers

Brokers and Exchanges

• Securities brokers and dealers
• Securities exchanges
• Clearing agencies
• Other Exchange Act registered entities

Government-Related Exemptions

Public Entities

• Federal/state government instrumentalities
• Political subdivisions
• Public agencies
• Public authorities

Tax-Exempt Entities

• 501(c) organizations
• Political organizations
• Charitable trusts
• Split-interest trusts

Special Category Exemptions

Regulated Utilities

• Public utility companies
• Retail power providers
• Natural gas suppliers

Dormant Entities

Must meet ALL criteria:

• Existed before January 1, 2020
• Not engaged in active business
• No ownership changes since 2020
• No assets at any time in previous year

Subsidiary Exemptions

• Entities owned by exempt companies
• Must be controlled by exempt entity
• Requires direct or indirect ownership

How to Verify Your Exemption Status

Step 1: Category Assessment

• Identify potential exemption categories
• Review specific requirements
• Document qualification criteria

Step 2: Documentation Needed

• Tax returns
• Employee records
• Regulatory licenses
• Registration documents
• Financial statements

Step 3: Ongoing Monitoring

• Annual verification
• Status change tracking
• Documentation updates

Common Exemption Mistakes

Mistake 1: Partial Qualification

• Meeting some but not all criteria
• Misunderstanding requirements
• Incomplete documentation

Mistake 2: Changed Circumstances

• Losing exempt status
• Failing to notice changes
• Missing filing deadlines after status change

Mistake 3: Subsidiary Confusion

• Incorrect ownership assessment
• Missing control requirements
• Incomplete parent company exemption

What to Do If You're Not Exempt

Immediate Actions

1. Begin information gathering
2. Identify beneficial owners
3. Collect required documentation
4. Set up compliance systems

Timeline Requirements

• Existing businesses: File by January 1, 2025
• New businesses: 90 days from formation
• Status changes: 30 days to file

Maintaining Exemption Records

Required Documentation

• Proof of qualification
• Annual verification records
• Status change monitoring
• Compliance reviews

Best Practices

1. Regular status reviews
2. Documentation updates
3. Change monitoring
4. Compliance calendar

Edge Cases and Special Situations

Multiple Business Types

• Different rules for different entities
• Combined operations consideration
• Group structure analysis

International Operations

• U.S. presence requirements
• Foreign ownership implications
• Cross-border considerations

How BOISimply Helps

Exemption Tools

• Status checker
• Documentation tracker
• Change monitoring
• Compliance alerts

Support Services

• Expert guidance
• Status verification
• Documentation review
• Update management

Action Steps

If You Think You're Exempt

1. Verify qualification criteria
2. Gather supporting documentation
3. Document your analysis
4. Set up monitoring systems
5. Plan for status changes

If You're Not Sure

1. Use our exemption checker
2. Consult with experts
3. Review requirements
4. Prepare for either outcome

Stay Compliant

Remember:

• Exemption status can change
• Regular reviews are necessary
• Documentation is crucial
• Updates may be required

Don't risk penalties - verify your status today.