BE-605: Quarterly BEA Reporting for New Jersey Businesses

Many business owners focus on reports like BE-12 and BE-15, thinking they’ve covered their obligations, only to realize too late that quarterly reports like BE-605 also play a crucial role in foreign investment compliance.

Welcome to the sixth article in our BEA reporting series. Last time, we covered BE-15, a key annual filing for businesses with foreign ownership. Today, we shift gears to focus on BE-605, a quarterly survey that tracks direct investment transactions between U.S. businesses and foreign entities.

So, what exactly is BE-605? Who needs to file it? What kind of data must be reported? When is it due, and what happens if you miss the deadline? These are the questions we’ll answer in this article, ensuring you have a clear understanding of your reporting obligations and how to avoid compliance pitfalls. Let’s get started.

What Is the BE-605 Report?

Think you’re done with BEA reporting after handling your annual filings? Not so fast. If your business has direct investment transactions with a foreign parent or affiliate, quarterly reporting might be on your plate too.

The BE-605 is a quarterly survey required by the Bureau of Economic Analysis (BEA) to track financial transactions between U.S. businesses and foreign entities. Unlike BE-12 and BE-15, which provide a yearly overview, BE-605 offers real-time data on cross-border investments, helping regulators keep a pulse on foreign direct investment (FDI) in the U.S.

Who Must File the BE-605 Report?

But does every company need to file BE-605? Not quite. Only certain U.S. businesses meet the reporting criteria, and understanding where yours falls can save you from unnecessary filings, or worse, compliance issues.

A U.S. business enterprise must submit a BE-605 report if:

• A foreign entity owns, directly or indirectly, at least 10% of its voting securities (if incorporated) or an equivalent interest (if unincorporated) at any time during the reporting quarter.

• It had direct investment transactions with a foreign parent during the reporting period.

• It met at least one of the following financial thresholds at any time during the fiscal year:

  • Total assets exceeded $60 million.

  • Annual sales or gross operating revenues (excluding sales taxes) exceeded $60 million.

  • Annual net income or loss after U.S. taxes exceeded $60 million.

• If indirectly owned, it met the $60 million threshold and had an intercompany debt balance with the affiliated foreign group.

If a business does not meet these criteria and has been contacted by the BEA or previously filed, it must submit an exemption claim rather than simply skipping the report.

When Is the BE-605 Report Filed?

Unlike annual reports like BE-12 and BE-15, the BE-605 is a quarterly survey that must be filed four times a year. Each report covers transactions from the previous calendar quarter.

• Filing Deadlines

  • Reports are due 30 days after the end of each calendar quarter.

  • If a business’s final quarter of its financial reporting year aligns with a BE-605 filing period, the deadline extends to 45 days.

• Quarterly Filing Schedule:

  • Q1 (Jan–Mar): Due April 30.

  • Q2 (Apr–Jun): Due July 30.

  • Q3 (Jul–Sep): Due October 30.

  • Q4 (Oct–Dec): Due January 30 (or 45 days if it’s the final quarter of the business’s financial reporting year).

A New Jersey business lawyer can help by reviewing your reporting obligations, ensuring accuracy in your filings, and communicating with the BEA if any issues arise.

What Happens If You Don’t File?

Missing the BE-605 deadline comes with serious consequences.

• Civil penalties – Failing to file can lead to fines ranging from $2,500 and going up to $32,500 per violation. These penalties can increase over time due to inflation adjustments (15 CFR 6.4). Courts may issue injunctive relief, legally forcing non-compliant businesses to file.

• Criminal penalties – If you willfully avoid filing or submit false information, you could face fines of up to $10,000 and up to one year in jail. Company officers, directors, employees, or agents who knowingly participate in non-compliance may also face penalties.

• Increased scrutiny – Missing a filing can trigger a compliance review or even a federal audit, leading to further obligations and potential liabilities.

If the BEA contacts your business, you must respond, even if you believe the form does not apply. Ignoring a BEA request can escalate the issue and increase the risk of enforcement actions.

To avoid penalties and compliance headaches, it’s best to stay proactive. If you're uncertain about your filing obligations, consulting a New Jersey business lawyer can help clarify your responsibilities and ensure you meet all deadlines without unnecessary risk.

Wrapping Up

With quarterly deadlines and strict reporting rules, missing a filing or submitting inaccurate data can trigger financial penalties and unwanted regulatory attention. Instead of guessing whether your business needs to file, working with a New Jersey business lawyer can simplify the process. From verifying your reporting obligations to ensuring accurate submissions and handling BEA communications, legal guidance can help you avoid compliance missteps and keep your focus on running a successful business.

In the next article in our BEA reporting series, we’ll cover BE-10, the key report for U.S. businesses investing abroad. If your company has operations or investments outside the U.S., you won’t want to miss it.

Are you wondering about any of the issues mentioned above? Please email us at Info@staturelegal.law or call (732) 320-9831 for assistance.

At Stature Legal, we give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®