Indirect 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 MoreCompanies as Beneficial Owners
FinCEN identifies four types of entities that can own companies (called “reporting companies” if they are required to report their Beneficial Ownership Information (or BOI) to FinCEN), and they are individuals, trusts, companies, and other types of entities. Technically, Beneficial Owners can only be individuals. Therefore, if a company has an ownership interest in a…
Read MoreTrusts as Beneficial Owners
Trusts, along with other types of entities such as individuals and companies, can own a company, such as a Corporation or Limited Liability Company (LLC). If a company is required to report Beneficial Ownership Information (or BOI) to FinCEN, it is referred to as a “reporting company”. A reporting company must report BOI, but BOI…
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