Is It Necessary to Submit Company Applicant Information for My Business?
If you're starting a new business, it's crucial to understand your reporting responsibilities under the Corporate Transparency Act. A frequent question from business owners is whether they are required to report details about their company applicant. Let's explore when this information is required and why it's important.
When Should I Submit Company Applicant Information?
The requirement to report company applicant information primarily applies to businesses formed or registered after January 1, 2024. Here’s a breakdown of when you’ll need to submit this information:
- For Companies Formed or Registered Before January 1, 2024: If your company was established before this date, you're not required to report company applicant details. However, you must still file your Beneficial Ownership Information (BOI) report by January 1, 2025.
- For Companies Formed or Registered Between January 1, 2024, and January 1, 2025: Companies created during this period have 90 calendar days from the date they receive actual or public notice of their formation to submit their BOI report, including company applicant information.
- For Companies Formed or Registered on or After January 1, 2025: For companies established after this date, you must file 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 Details Must Be Provided for Company Applicants?
For each company applicant, you are required to report the following details:
- Full Name
- Date of Birth
- Residential Address
- Unique Identifying Number from an acceptable document (such as a passport, driver’s license, or other government-issued ID)
Company applicants are generally individuals involved in filing the formation documents for the business or assisting in the process, such as legal representatives or business partners.
Why Does This Matter?
Reporting company applicant details helps ensure transparency regarding the individuals responsible for forming a company. This requirement is part of FinCEN’s initiative to combat financial crimes and promote accountability in business structures. Failure to submit this information could lead to penalties or cause delays in your company’s operations.
If you're starting a business, it's crucial to understand your Beneficial Ownership Information (BOI) reporting obligations, including the requirement to disclose company applicant details. Being aware of the deadlines and the necessary information will help you remain compliant with the Corporate Transparency Act and prevent potential legal complications.