How does the FinCEN beneficial ownership reporting rule “large operating company” exemption work?

In order to be exempt under the large operating company exemption a company must meet all of the following criteria:

1. 20 full time employees

must employ more than 20 full time employees in the United States
a full-time employee is, with respect to a calendar month, an employee who is employed an average of at least 30 hours of service per week with an employer
headcounts are done at the level of each individual company. FinCEN does not allow companies to consolidate employee counts across affiliated entities.

2. US operating presence at a physical office within the United States

company regularly conducts its business at a physical location in the United States
company owns or leases the physical location, and
is physically distinct from the place of business of any other unaffiliated entity

3. Gross receipts or sales in excess of $5M

company must have filed a Federal income tax or information return (IRS Form 1120, consolidated IRS Form 1120, IRS Form 1120-S, IRS Form 1065, or other applicable IRS form) in the United States for the previous year demonstrating more than $5 million in gross receipts or sales
excludes gross receipts or sales from sources outside the United States
for an affiliated group of corporations within the meaning of 26 U.S.C. 1504 that filed a consolidated return, the applicable amount is the amount reported on the consolidated return for the group