Beneficial Owner

A beneficial owner, as stipulated by the Corporate Transparency Act (CTA), is an individual who either:

Directly or indirectly exercises substantial control over a reporting company; Or owns or controls at least 25 percent of the ownership interests of such a company. An individual can qualify as a beneficial owner through either substantial control, ownership interests, or a combination of both. It’s important to note that reporting companies are not mandated to specify whether an individual is a beneficial owner due to substantial control or ownership interests.

A single reporting company can have several beneficial owners. For instance, one might exercise substantial control over the company, while others may own or control at least 25 percent of the company’s ownership interests. Furthermore, it’s possible for a beneficial owner to meet both criteria. The CTA does not set a limit on the number of beneficial owners that a reporting company must disclose.