Beneficial Owners
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Who is a Beneficial Owner?
A beneficial owner is an individual who, directly or indirectly:
- Has significant control over the company, like a senior officer or someone who can make major decisions regarding the business, finances, or structure.
- Holds at least 25% ownership interest in the company, through shares, voting rights, or similar means.
Exceptions
Only some people who fit the above criteria are necessarily a beneficial owner. Specific exceptions exist, such as those providing professional services like lawyers or accountants who don't exercise control over the company.
Reporting Requirements
When reporting beneficial ownership
- All individuals with substantial control or significant ownership must be reported.
- If ownership is through multiple exempt entities, those entities' names may be reported instead.
- Service providers managing daily operations without making significant decisions aren't considered beneficial owners.
Company Applicant
Who is a Company Applicant?
For companies registered on or after January 1, 2024, the company applicants to be reported are:
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The person who directly files the document creating or registering the company.
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If more than one person is involved, the one primarily responsible for directing or controlling the filing.
Requirements
- Not all companies need to report company applicants. Only those created or registered in the U.S. after January 1, 2024.
- Company applicants could include professionals like lawyers or accountants if they played a direct role in the company's formation.
- Once reported, a company applicant's information cannot be removed, even if their relationship with the company ends.