The rule applies to all types of legal entity business types registered by a state registering authority such as incorporations, limited liability companies, partnerships and others. A legal entity does not include natural persons, personal trusts, sole proprietorships and unincorporated associations.
The rule also does not apply to the following:
- An issuer of securities under SEC rules;
- Any majority owned domestic subsidiary of a company listed on a U.S. stock exchange;
- An investment company;
- A registered investment adviser;
- An exchange or clearing company or other entity registered with the SEC;
- Certain CFTC registered entities;
- A public accounting firm; or
- A charity or nonprofit entity (subject to the control prong only).