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Who is a Beneficial Owner of the company?

A beneficial owner is an individual who either directly or indirectly:

  1. Owns or controls at least 25% of the reporting company’s ownership interests.
  2. Exercises substantial control over the reporting company.

An individual is considered to exercise substantial control over a reporting company if they:

  • Hold a senior officer position (e.g., president, CFO, general counsel).
  • Possess the authority to appoint or remove specific officers or a majority of directors.
  • Serve as an important decision-maker for the company.
  • Exercise any other form of substantial control over the reporting company.
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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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