If your company is a reporting company, your next step is to identify its beneficial owners.

A beneficial owner is any individual who, directly or indirectly:

• Exercises substantial control over a reporting company;

OR

• Owns or controls at least 25 percent of the ownership interests of a reporting company.

An individual might be a beneficial owner through substantial control, ownership interests, or both. Reporting companies are not required to report the reason (i.e., substantial control or ownership interests) that an individual is a beneficial owner.

A reporting company can have multiple beneficial owners. For example, a reporting company could have one beneficial owner who exercises substantial control over the reporting company, and a few other beneficial owners who own or control at least 25 percent of the ownership interests of the reporting company. A reporting company could have one beneficial owner who both exercises substantial control and owns or controls at least 25 percent of the ownership interests of the reporting company. There is no maximum number of beneficial owners who must be reported.

FinCEN expects that every reporting company will be substantially controlled by one or more individuals, and therefore that every reporting company will be able to identify and report at least one beneficial owner to FinCEN. The following four sections will assist you in determining your company's beneficial owners. If an individual qualifies as a beneficial owner, information about that individual must be reported to FinCEN in a reporting company's BOI report.

• 2.1 What is substantial control?
• 2.2 What is an ownership interest?
• 2.3 What steps can I take to identify my company's beneficial owners?
• 2.4 Who qualifies for an exception from the beneficial owner definition?

This chapter generally covers 1010.380(d),"Beneficial owner".