Those entrepreneurs who have created before 2023 their C Corporation or LLC within the US, have at least 10% ownership of the company and live abroad, must file Form BE-12C.
This was stated by the U.S. Bureau of Economic Analysis a few weeks ago, who indicated that this new regulation will apply to all those companies registered before 2023.
Let's talk a little more about this form.
What is the BE-12C form ?
This is a survey conducted every 5 years by the BEA (Bureau of Economic Analysis) and must be submitted by business owners who own 10% or more of the business and are non-US residents.
With the data from this survey, the BEA obtains detailed information on investments made in the United States by non-residents or foreigners.
After a thorough analysis, they also manage to form statistics that measure the magnitude of such investments for the convenience of both parties.
What data must be filled in the form BE-12C?
- Member's full name.
- Own or company address.
- E-mail address.
- Identification number.
- Registration Date.
- State of Formation.
- Employer Identification Number.
- Main Products and Services.
- Industry Code.
- Number of Employees within the U.S.
- Does the company have a non-resident owner with 10% or more ownership?
- Does 50% or more of the company belong to another U.S. company?
- In which country does the owner reside (or is incorporated if the owner is another company)?
- Is the company the owner of other businesses? Specify the percentage if the answer is yes.
- What is the total value of assets?
- What is the total value of debts?
- What are the gross revenues (sales before deducting expenses)?
- What is the profit value (net income, sales after deducting expenses)?
Who should be filled out in the form BE-12C? ?
As mentioned above, those LLCs and C Corps in which the owners are non-residents and own at least 10% of the property.
However, let's go a little deeper into this.
It is important for you to know that when the BEA refers to "owners", it includes both those who own from that minimum percentage of the property directly and those who own it indirectly.
In addition to this, to file the BE-12C the company cannot exceed $60 million during the tax year in gross receipts, net income or assets.
If your LLC or C Corp exceeds that figure, then you must fill out a different form, which would be the BE-12A Form or the BE-12B Form (depending on certain conditions).
Speaking of dates now, this form must be completed only by those companies created in 2022 or earlier.
Companies created in 2023 are not required to file this form.
Neither should businesses that were dissolved in 2022 (with the exception of those companies that had activities in previous years, even if the company was already dissolved).
Even if the company had no activity during the year 2022, it must file this form on a mandatory basis.
And to close, let's solve the doubt about "the amount of form".
If your LLC or C Corp has multiple owners or members, it does not mean that each one must fill out this form. Since it is filed in the name of the company, therefore, it is only one form that is submitted.
The same person can send more than one form if he/she has several companies that are totally different from each other. In this case the person must fill out this form in the name of each company.
What are the deadlines (2023) for submitting this survey?
As mentioned at the beginning of this post, the BE-12C form is filed every 5 years.
For 2023 it must be submitted before the end of the first half of the year, and depending on the method of submission there are two dates:
● May 31: for those who send it by mail.
● June 30: for those submitting online.
So the deadline is June 30, 2023, failure to file by this date could result in tax consequences such as penalties. Read on to learn more about the penalties.
What happens if I do not send the BEA form?
If you fail to submit the BE-12C form by the deadline, there are 3 types of consequences from the BEA:
1. You will have to pay a fine ranging from $5,580 to $55,808.
2. If you willfully fail to comply with the BE-12C Form obligation, you could be assessed an additional $10,000.
3. In the most extreme case, you could also face up to one year in jail.
Therefore, it is very important that you send it before the established deadline.
Frequently Asked Questions
Aclare rápidamente cualquier duda, recuerde que siempre estamos encantados de responder sus preguntas.
To apply for an extension you must do so by May 31, 2023 through the BEA's eFile system.
If you missed the extension date, but your company was formed within the last 5 years, some relief may apply due to lack of knowledge of this requirement.
My company was registered in 2023, do I have to file form BE-12C?
Fines for failure to file Form BE-12C range from $5,580 to $55,808.
To this amount can be added $10,000 for willful noncompliance and in cases of submitting false information may be punishable by imprisonment.
At Rex Legal we will help you fill out and submit this document to avoid costly fines from the BEA.
If you need help with Form BE-12C or any related issue, then contact us.
Yes. Both the annual report and the tax return are separate obligations. Form BE-12C is an obligation on the part of the BEA to collect data on foreign-owned business activities in the US.
The U.S. Bureau of Economic Analysis is a U.S. government agency that is responsible for producing various statistics on the U.S. economy.
Among the statistics produced by this entity are figures by industry, national accounts, regional accounts and others.
May 31: for those who send it by mail.
June 30: for those who send it online.