Do I Need to Report the Company Applicant Details for My Business?
If you’re setting up a new business, understanding your reporting obligations under the Corporate Transparency Act is essential. One common question many business owners ask is whether they need to report the details of their company applicant. Let’s clarify when and why this information is necessary.
When Do I Need to Report Company Applicant Details?
The requirement to report company applicant information applies primarily to companies created or registered after January 1, 2024. Here’s a breakdown of when you’ll need to submit this information:
⦁ For Companies Created or Registered Before January 1, 2024:
If your company was created or registered before January 1, 2024, you are not required to report company applicant details. However, you still need to file your beneficial ownership information (BOI) report by January 1, 2025.
⦁ For Companies Created or Registered Between January 1, 2024, and January 1, 2025:
If your company is created or registered within this period, you have 90 calendar days from the date of receiving actual or public notice of your company’s formation to submit your BOI report, including the details of the company applicant.
⦁ For Companies Created or Registered on or After January 1, 2025:
For these companies, you must submit your BOI report—including the company applicant’s details—within 30 calendar days of receiving actual or public notice of the company’s formation.
What Information Is Required for Company Applicants?
What Information Is Required for Company Applicants?
For each company applicant, the following details must be reported:
⦁ Full Name
⦁ Date of Birth
⦁ Residential Address
⦁ Unique Identifying Number from an acceptable document (such as a passport, driver’s license, or another form of government-issued ID)
Company applicants are typically individuals who file the formation documents on behalf of the company or assist in the process, such as legal representatives or business partners.
Why Is This Important?
Reporting company applicant details ensures transparency about who is behind the creation of a company. This is part of FinCEN’s effort to prevent financial crimes and create accountability within business structures. Failing to report this information could result in penalties or delays in your business operations.
If you are starting a business, it’s essential to understand your BOI reporting requirements, including the need to report company applicant details. By knowing the deadlines and the information required, you can stay compliant with the Corporate Transparency Act and avoid any potential legal issues.