If there is a Trust, LLC, Pension Fund, etc. that owns a >25% interest in a Business Entity, what is Dwolla’s recommendation for adding these types of Customers and Beneficial owners?
Hey @jmtichell hope your week has been going well.
Can you elaborate on this question a bit?
A beneficial owner is only required if the individual owns 25% of the business entity that is signing up as a Verified Business Customer.
Are you looking for more information regarding if it is not an
individual person, but rather a business entity that owns 25% of a company–such as a parent company?
Let me know if this is the case, if not, I may need more information on your use case or another example to best answer your question.
Correct, there are individual persons down the line ultimately in the organization chart , but more often all of the owners of the entity that the bank account will be connected to are also business entities.
A legal entity is
not a beneficial owner. Rather, you have to look through to the natural persons actually benefiting from the business you are signing up as.
So if corporation A is owned by corporation B, the question is who are the natural persons benefiting from that corporation. Specifically for this, if LLC B owns only 25% of LLC A, who owns LLC B?
If LLC B is 100% owned by just a one person they effectively own 25% of LLC A and would have to be listed as a beneficial owner.
But to simplify things, you can just ask if there is a single individual that would own 25% or more of the business you are looking to onboard.
Let me know if this helps clear things up for you.
Thank you for clarifying. In the case that Company B owns 50% of the Company A, but no individual inside Company B owns >50% of Company B - does Dwolla require proof of this? What I’m getting at, is in such a structure - do you require proof that there is no Beneficial Owner?
In the situation you provided, we would not require proof that there is a beneficial owner.
This is because there is no single individual that owns the 25% or more of Company A