What are Large Operating Companies?
Large Operating Companies are entities that qualify for exemption from Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). To qualify for this exemption, a company must meet three key criteria:
- Employ over 20 full-time U.S. employees: The company must have more than 20 full-time employees working within the United States.
- Generate more than $5 million in gross U.S. income: The company must have earned at least $5 million in gross income within the United States in the previous fiscal year.
- Maintain a physical office in the U.S.: The company must have a real, physical business office within the United States.
These criteria ensure that large, well-established companies with significant operations in the U.S. are subject to other regulatory and transparency requirements, thus exempting them from BOI reporting. The exemption helps reduce the regulatory burden for large companies that are already closely monitored through other mechanisms.
