What must a company report about a beneficial owner with stakes through multiple exempt entities?
36 views |Last modified 8/13/2024 9:39:10 AM EST | Added by TaxBandits Team

The beneficial owner whose ownership interests of the reporting company are held through one or more entities, all of which are exempt from the definition of a reporting company. You don’t have to report information regarding individual beneficial owners. Rather, you may report the name of the exempt entities. 
For example, if a large operating company(exemption 21) holds 50% of the ownership interests in your company, it is considered exempt from the reporting requirements. This means the large operating company is not classified as a reporting company. If Individual A owns 50% of the large operating company, they consequently hold 25% of the ownership interests in your company (50% × 50% = 25%). In this case, you can report the name of the large operating company instead of Individual A's personal information.