Home SIMPLE IRA Plan setup What is the difference between a beneficial owner and an entity officer?

What is the difference between a beneficial owner and an entity officer?

Last updated on Sep 17, 2024

Here is the difference between a beneficial owner and an entity officer.

Beneficial Owner:

  • A beneficial owner is an individual who benefits from a particular business, either directly or indirectly.

  • They benefit through a contract, agreement, or relationship or by owning 10% or more of the equity interests of the legal entity.

Entity Officer

  • An entity officer is a person who performs or takes responsibility for business functions.

  • They work as an executive officer or senior manager (includes chief executive officer, chief financial officer, chief operating officer, managing member, general partner, president, vice president, and treasurer).