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Substantial Owner
Practical Law Glossary Item 3-502-2929 (Approx. 2 pages)
Glossary
Substantial Owner
An individual who, at any time during the 60-month period ending on the date that the determination is made, satisfies one of three conditions:
- Owns the entire interest in an unincorporated trade or business.
- In the case of a partnership, is a partner who owns, directly or indirectly, more than 10% of either the capital interest or the profits interest in the partnership.
- In the case of a corporation, owns, directly or indirectly, more than 10% in value of:
- the voting stock of the corporation; or
- all the stock of the corporation.
For purposes of determining ownership interests in a corporation, the constructive ownership rules of Code Section 1563(e) apply (other than the rules in paragraph 1563(e)(3)(C)), including the application of the rules under Code Section 414(c).
(ERISA § 4021(d) (29 U.S.C. § 1321(d)).)