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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 6777
Experience:  30+ yrs. representing small business, real estate, probate
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Hi, I am needing help with understanding a form labeled "Disclosure

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Hi, I am needing help with understanding a form labeled "Disclosure of Ownership and Control Statement." I am starting a business, it is a Medicaid waiver program, and there is a packet of required forms. I was able to fill out the other forms (with the help of justanswer lawyers!), but this one has me stuck. It is just me and one other individual starting the business together, under the business structure LLC. Please check out the form here: Please don't be intimidated by the length of the form, from what I understand, I only have to fill out a few of the sections!!

Hello. Thanks for contacting us again with your question. I am not sure what your question is about this form which is required by the Sate of Texas. The reason for the form is that when a governmental entity does business with a privately owned entity such as a corporation or your LLC, it has the right to know who the individuals are who own and/or control that entity. It is a very comprehensive form, but it appears the sections 2a and 2b are the ones that apply to you.

I hope this information is helpful and that you will enter a positive rating. I thank you for submitting your question to Pearl-Just Answer. We appreciate your business. If you need clarification or additional information, please send me a Reply and I will be happy to explain further. Please consult a local attorney to verify the accuracy of this information according to your state's laws.

Customer: replied 3 years ago.

Thanks for your answer, that did help. Yes, my question was basically which sections did I need to fill out. On section 2a, I put the business name & information. But what do I put in 2a where is asks "percent of ownership?" What is that referring to?

And my last question, should I fill out that last page, titled "attachment A, corporation address?" It says to provide the info for each corp disclosed in section 2 or 3 that has an ownership interest of 5% or more in the disclosing entity's legal entity. What does that mean???

A LLC is owned by its members. A formal (i.e.written) membership agreement should set out the ownership interest of the members. To keep it simple, if you and the other person have agreed to a 50-50 split of profits. Then after each owner's name you would put 50%. I don't believe that anything after 2b applies to you unless you have a corporation as a member. If you do, then you have to also disclose the names and percentages of ownership of any corporation the has an ownership interest of more than 5%. At least that's how I (quickly) read it .



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