FinCen Advisors FAQ

Under the Corporate Transparency Act (CTA), a “beneficial owner” is defined as an individual who, either directly or indirectly, meets one or both of the following criteria: Exercises Substantial Control: This refers to an individual who has significant influence over or responsibility for key decisions regarding the entity’s operations, finances, or other significant matters. Owns or Controls a Substantial Interest: This typically means an individual who owns or controls at least 25% of the ownership interests in the entity. The definition is designed to identify individuals who have the authority to exert significant influence over a company or who hold a substantial ownership stake in it.