When working with a Business Entity that does not issue equities, like many limited liability companies or limited partnerships, we enter its ownership data through the Non-Capital Ownership method.
Non-Capital Ownership lets us track a Business Entity’s Members and what percentage of the company they own.
The following image shows the Register of Members – Non Capital Ownership Screen (also called Register of Members – Guarantee) for a subsidiary called Echo Grid Technology LLC.
Each numbered column in the image represents a specific type of information that is recorded when using the Non-Capital Ownership method. The table below explains what each column tracks and describes the details captured for each category.
Member (1) | These entities have an ownership stake in the Business Entity |
Membership Type (2) | These values distinguish general partners from limited partners or managing partners. Other types can be added as need. |
Certificate No. (3) | If certificates are issues to members, their numbers can be tracked here. |
% Parent Voting Interest Held (4) | These figures are the voting interests held by the Members. The voting interest held can be different from the overall percentage held when a Member cannot vote on policies or appointments. |
% Held (5) | These figures are the percentage held in the Business Entity by the Members. |
Date Appointed (6) | These are the dates the Members were appointed. |
Date Resigned (7) | These are the dates the Members resigned, if applicable. This allows you to track those Members who had an ownership stake in the past but no longer do. |
Tip: If your Members' ownership is tracked as units rather than a percentage, that can also be tracked via Non-Capital Ownership.