Beneficial Owners

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:

The person who directly files the document creating or registering the company.

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.