The Reporting Rule exempts the following twenty-three types of entities from the Beneficial Ownership Information (BOI) reporting requirements:

Beneficial Owners: Entities must identify their beneficial owners, defined as individuals who either own 25% or more of the equity interests of the entity or exercise substantial control over the entity.

25% Ownership: The 25% ownership criterion for Beneficial Ownership Information (BOI) reporting refers to individuals who directly or indirectly own at least a 25% equity interest in a company or legal entity. This includes any form of equity, such as shares, capital, or profits.

Substantial Control: “Substantial control” in the context of Beneficial Ownership Information (BOI) refers to the authority to make significant decisions affecting the entity, regardless of equity ownership. This could include senior officers, executives, or anyone else who has significant influence over the company’s operations, policies, or financial transactions.

To qualify as a “large operating company” and be exempt from the Beneficial Ownership Information (BOI) reporting requirements, an entity must meet all of the following criteria:

1. Employment: The entity must employ more than 20 full-time employees in the United States.
2. Operating Presence: The entity needs to have an operating presence at a physical office within the United States, which is a location that the entity owns or leases and is distinct from any other unaffiliated entity.
3. Gross Receipts or Sales: The entity must have filed a federal income tax or information return in the United States for the previous year showing more than $5,000,000 in gross receipts or sales. This amount should be net of returns and allowances. If the entity is part of an affiliated group of corporations, the consolidated return for the group applies.