How to File the BE-13 Exemption for Non-U.S. Owned LLCs and Corporations

[@enjaya1]

Dear Jason, I wanted to express my deep appreciation for your incredible videos. They have been truly inspiring. I have a question regarding my current situation. I am an individual residing in Spain and I own a single-member LLC in the United States, with foreign ownership. I registered my LLC in March 2023 with an initial investment of $500 USD, which falls well below the $3 million threshold. I'm unsure if I need to file a BE-13 form (Claim for Exemption) or if it is solely required for foreign entities. Could you kindly provide some clarification on this matter? If I am indeed required to fill out the form, I would also like to know how to respond to these two questions: Question 1: In which country is the U.S. business enterprise's foreign parent incorporated? Question 2: In which country is the U.S. business enterprise's ultimate beneficial owner (UBO) incorporated? Do I need to answer these questions if I created my LLC in the United States as an individual and not as a separate entity? Once again, thank you for your invaluable content.

[@MatiasOlivera-p2h]

Nice viceo. Thank you. It would be great if you can make a new version since it changed. There are almost no videos explaining how to complete the PDF. And none is as clear as yours. I believe many people needs from this video. Thanks!

[@Jayenwoods]

By far you make the best videos in your space I've found anywhere on the internet! You really deserve far more views Jason! One question if I may: if you're say 6 months past the deadline with an LLC with EIN but no activity so far, have had no letter from them and you fill out the form, are they realistically likely to try and fine you? I guess apologizing profoundly in the notes section in question 3 making it clear you were unaware of the requirement may be a good step... althou that would also shine a light on the fact the filling is late :p Also if you create a new corporation and immediately add it to an existing LLC creating a partnership (yes I've been watching your videos lol), do you fill out a BE-13 form only for the Corporation or would you also need to fill one out again for the partnership since it's a mayor change to the original LLC's structure? Maybe just file for the original LLC once it is part of a partnership since you're already late...? Thank you!

[@JasonDKnott]

Thank you, Jayen. I appreciate your support! The compliance enforcement for these BE-13 forms is very low, but that is not to say they won't start being more aggressive in the future. A new BE-13 form would not be required if the LLC added a new partner that only had nominal ownership interest (under 10%).

[@Jayenwoods]

@@JasonDKnott Thank you for your reply Jason! I guess its a matter of better late than sorry then :) OK so if instead of the 1% ownership corp partner one added a physical person at 50% ownership one would need to file again. I'm still researching my options a lot, when I'm ready i may schedule a consultation with you. I just have to be careful as I have very limited resources right now so I have to be extremely efficient with them.

[@RishavJain]

Is there a penalty for late filing?

[@niNi-ic2lw]

THANK YOU!!!! this is totally life saving!!

[@JasonDKnott]

You're welcome!

[@KashifAli-ck2oh]

Thanks for explaination.. Can you please tell us why should we file this BE 13 i mean whats the purpose and when will IRS send this form to foreign owned llc's owners???

[@suruchisinha5952]

Hi Jayen, Does the communication address mentioned should be of US itself?

[@JasonDKnott]

The contact address should be a current mailing address. It can be either a U.S. or foreign address.