Jesseca Lane
Brand & Marketing
Connor Patterson
Co-Founder
Evan Shoemaker
Head of Product

Is your business exempt from filing a Beneficial Ownership Information Report (BOI)? Let's break down the exemptions in plain English and help you figure it out.

The Big Three Exemptions

Let's start with the most common exemptions that might apply to your business:

1. Large Operating Companies

You're exempt if ALL of these apply:

  • More than 20 full-time employees in the US
  • Over $5 million in gross sales/revenue from US operations
  • Physical office location in the US
  • Filed US taxes in the previous year

2. Public Companies

You don't need to file if you're:

  • Listed on a US stock exchange
  • Required to file SEC reports
  • A subsidiary of a public company

3. Tax-Exempt Organizations

No filing needed if you're:

  • A registered 501(c) organization
  • A tax-exempt political organization
  • A nonprofit trust

Other Common Exemptions

Several other types of businesses are exempt, including:

  • Banks and credit unions
  • Insurance companies
  • Registered investment advisers
  • Securities brokers and dealers
  • Public utilities
  • Government authorities

The "Inactive Business" Exemption

Your company might qualify as "inactive" and exempt if ALL these apply:

  • Existed before January 1, 2020
  • Not actively engaged in business
  • No foreign ownership
  • No ownership changes in the last 12 months
  • No funds transfers over $1,000 in the last year
  • No assets

How Palm Can Help

Not sure if you qualify for an exemption? Palm can:

  • Analyze your business against exemption criteria
  • Keep track of qualifying factors
  • Alert you if your exemption status might change
  • Help you maintain compliance if you don't qualify

Let's Get Started

Important Warning

Remember: Claiming an exemption incorrectly can result in penalties. When in doubt, it's better to file or seek professional guidance. Palm can help you make the right decision and maintain compliance.

For the most current information, always check the official FinCEN website at www.fincen.gov/boi or consult with Palm for guidance specific to your situation.

Need help determining if your business qualifies for an exemption? Palm can provide a quick assessment and help you stay compliant with all BOI requirements.

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