Direct Ownership
Indirect vs. Direct Ownership Interest
A “reporting company” is what FinCEN calls a company that is required to report its Beneficial Ownership Information (or BOI). But, who is a Beneficial Owner? There are two broad categories of Beneficial Owners: Those who exert “Substantial Control” over a reporting company, and those who own or control 25% or more of the “Ownership…
Read MoreWhat is Ownership Interest in a Reporting Company
Ownership interest is a catch-all term used by FinCEN to measure the amount of ownership or control in a “reporting company”. A reporting company is the term used by FinCEN to refer to a company that is required to report its Beneficial Ownership Information (or BOI). Ownership interest has different forms, it can represent current…
Read MoreTax Status for Companies
There are typically five (5) different tax statuses for “reporting companies,” which is the term used for companies that are required to report their Beneficial Ownership Information (or BOI) to FinCEN. It’s very important to know what the tax status of the reporting companies is, because it can have an impact on how BOI’s are…
Read MoreClasses of Ownership
Classes of ownership typically signify different voting rights or value of ownership, which must both be looked at when considering Beneficial Ownership.
Read MoreVoting Power
In order to determine which individuals have the requisite beneficial ownership interest to meet the 25% reporting threshold, one of the salient factors is Voting Power. Voting Power is often easy to assess, because it is generally discernable from the entity’s documents. The simplest situation is one where the entity issues shares of one class…
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