What are Ownership Interests?
Ownership interests represent the share or control an individual or entity has in a company, indicating the percentage of the company’s equity, voting rights, or decision-making power that they possess. This ownership can take various forms, such as stocks, partnership shares, or membership interests in different types of business entities like corporations, partnerships, or limited liability companies (LLCs).
In the context of Beneficial Ownership Information (BOI) reporting, ownership interests are crucial for identifying individuals who hold significant control or influence over a company. Individuals with 25% or more ownership or who exercise significant control are typically required to disclose their information to FinCEN under the Corporate Transparency Act (CTA).
Ownership interests also define a person’s claim to the company’s profits or assets, such as dividends or sale proceeds, as well as their responsibilities in terms of voting on major corporate decisions.
