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#2191473 - 08/31/18 09:15 PM REITs and Beneficial Ownership
MollyM Offline
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Mississippi
I hate to even post this but here goes. Is Beneficial ownership required on owners who are REITs? Technically they are not true trusts.
Thanks.
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#2191475 - 08/31/18 09:38 PM Re: REITs and Beneficial Ownership MollyM
BrianC Offline
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BrianC
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I need some help with that acronym. I don’t know what is stands for.
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#2191480 - 08/31/18 10:00 PM Re: REITs and Beneficial Ownership MollyM
MollyM Offline
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Mississippi
Real Estate Investment Trust
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#2191485 - 08/31/18 11:34 PM Re: REITs and Beneficial Ownership MollyM
rlcarey Online
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rlcarey
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Private, public, traded - what type of REIT?
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#2191716 - 09/05/18 08:24 PM Re: REITs and Beneficial Ownership MollyM
MollyM Offline
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Private.
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#2192129 - 09/11/18 01:47 PM Re: REITs and Beneficial Ownership MollyM
MollyM Offline
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Mississippi
Bumping so RLCarey will see again.
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#2192133 - 09/11/18 01:59 PM Re: REITs and Beneficial Ownership MollyM
rlcarey Online
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Since they are not publicly traded, they really become similar to a limited partnership. You need to find out if someone owns more than 25% of the REIT. Just curious - what sort of account are they opening and what is it's purpose?
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#2192150 - 09/11/18 03:06 PM Re: REITs and Beneficial Ownership MollyM
MollyM Offline
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It is a loan. Not sure purpose.
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#2261689 - 10/27/21 04:24 PM Re: REITs and Beneficial Ownership MollyM
praBSA Offline
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Bumping this to confirm.

Confirm my thinking:

REIT owns two LLCs for two separate properties and want to open accounts for both LLCs. Both LLCs must be registered and have their own TINs? Beneficial ownership form should just reflect whether anyone owns 25% of the REIT (private REIT). They aren't treated like a true trust for BO.

I'm asking all these questions because the REIT is trying to tell us that they don't need to register the LLCs and want to use REIT DBA ABC LLC and use their own TIN. I disagree and I'm pretty sure no state allows that. Then the follow up question would be, the BO Form.

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#2261702 - 10/27/21 05:59 PM Re: REITs and Beneficial Ownership MollyM
praBSA Offline
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Let me rephrase. If they are disregarded entities. It can be done, I am not sure that is what is happening here. I just want to advise my front line on documentation we need to move forward.

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#2261714 - 10/27/21 08:27 PM Re: REITs and Beneficial Ownership MollyM
ColoradoAML Offline
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It's my understanding that a disregarded entity can use the TIN of the parent entity. As for registration, I would expect them to be registered per our policy, regardless if there's a state that doesn't require disregarded entities to register.

It's also my understanding that ownership of a disregarded entity is the same as the ownership of the parent entity, so I agree with you that asking for BO of the LLC and asking for BO of the REIT are the same question.

EDIT: The question of who are the owners is the same, but my BO cert form lists the customer, and that would list the LLC, not the REIT.
Last edited by ColoradoAML; 10/27/21 08:30 PM.
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#2261721 - 10/27/21 08:54 PM Re: REITs and Beneficial Ownership MollyM
rlcarey Online
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I agree with Colorado. I also know of no States in which you can form an LLC and not register it with the State regardless of the fact that it might be a disregarded entity or not..
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