DEFINITION of 'Actual Owner'

A person or entity that receives the benefit of ownership. Being the actual owner, the asset is under the person's or entity's name and they are entitled to any advantage from that. The actual owner can be hard to determine at times if there are multiple people or entities involved. Also known as a beneficial owner.

BREAKING DOWN 'Actual Owner'

For example, the actual owner of a corporation would own over 50% of the company. However, it can get more complex when dealing with shell corporations and trusts. There can be significant tax advantages by increasing the complexity of ownership.

RELATED TERMS
  1. Entity Theory

    The assumption that the economic activities of a business is ...
  2. Accounting Entity

    A clearly defined economics unit that is accounted for separately. ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, ...
  4. Beneficial Owner

    1. A person who enjoys the benefits of ownership even though ...
  5. Entity Trading Account

    A trading account that belongs to a legal entity such as a corporation ...
  6. Incorporation

    The process of legally declaring a corporate entity as separate ...
Related Articles
  1. Small Business

    Why Successful Business Owners Sell Out

    Learn the motives that drive companies into the arms of an acquirer.
  2. Investing

    Who is a Beneficial Owner?

    A beneficial owner enjoys the benefits of owning an asset even though its title is in another’s name.
  3. Insurance

    Using Insurance in a Business Succession Plan

    How to use life and disability insurance to help fund a business succession or buyout plan.
  4. Managing Wealth

    5 Reasons Small Business Owners Sell Their Companies

    Selling a business you've built from scratch isn't done lightly. Consider these moments when the opportunity might be right for you.
  5. Small Business

    Which Type of Organization Is Best For Your Business?

    Learn the differences between the types of business organizations so you can determine how to best structure your business for tax and liability limitations.
  6. Small Business

    What is a Corporation?

    A corporation is an organization—usually a large business—with specific characteristics.
  7. Small Business

    Understanding Limited Liability

    Limited liability is a legal concept that protects equity owners from personal losses due to their ownership interest in the company.
  8. Small Business

    Small Business: It's All About Relationships

    Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts.
  9. Small Business

    Explaining Incorporation

    Incorporation is the process of legally becoming an entity that is separate from its owners.
  10. Financial Advisor

    How to Ready Your Advisory Practice for Sale

    Advisors who plan to sell their practice need to consider these steps in advance.
RELATED FAQS
  1. What are some examples of how corporations manage short-term investments?

    Learn how a business owner can protect against significant liability by forming a corporate entity structure, and understand ... Read Answer >>
  2. How can a company or entity maintain an absolute advantage?

    Learn how a company or entity is able to maintain a absolute advantage. Understand the difference between absolute advantage ... Read Answer >>
  3. How can a company or entity challenge the absolute advantage of another company?

    Understand what absolute advantage is, and learn how a company or entity can challenge the absolute advantage of another ... Read Answer >>
  4. Do companies have to pay back their paid-up capital?

    Learn what business structures are available to entrepreneurs, and learn the process for making the most appropriate selection ... Read Answer >>
  5. Can a Limited Liability Company (LLC) issue stock?

    Learn about a limited liability company, or LLC, and if it is able to issue stock. Understand the benefits of an LLC, both ... Read Answer >>
  6. Which factors drive the marginal propensity to consume?

    Understand how a limited liability company is taxed. Learn the tax structure of a single-owner LLC versus a multi-owner LLC. Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center