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Ownership Interest Fact Sheet

What is considered ownership interest?

Any of the persons listed in the below three descriptions are considered to have ownership interest for the purposes of certification.

  1. Any of the following persons, whether or not they are actively involved in the business:

     

    Type of ownership

    Persons

    Sole proprietorship

    Sole proprietor

    General partnership

    All partners

    Limited partnership, limited liability partnership, or limited liability limited partnership

    • All general partners
    • All limited partners

    Limited liability company

    • All LLC members
    • All managers

    Privately held corporation

    • All stockholders

    Publicly held corporation

    • All stockholders

    Multi-level ownership structures

    OMWBE will review each entity to determine which individuals must qualify for certification.

  2. Any person who receives, or has the right to receive, more than ten percent of either the gross or the net sales from the business during any year.

    These persons are considered to have an ownership interest whether or not they are actively involved in the business.

    • "Gross sales" includes the entire gross receipts from all sales and services.
    • "Net sales" means gross sales minus cost of goods sold.

   3.  Owners’ spouse or domestic partner, if:

  • The owner used assets to acquire the business that were held jointly or as community property by a spouse or domestic partner, and
  • The spouse or domestic partner participates in the management of the business.