Question: What is an applicant and when does a reporting company have to include applicant information in its FinCEN report filed under the Corporate Transparency Act.
Answer: All reporting companies formed after 2023 must include applicant information in their FinCEN report. Reporting companies formed before 2024 do not include applicant information in their FinCEN reports.
An applicant is individual who forms a reporting company by filing an application to form a corporation, limited liability company, or other similar entity under the laws of a State or Indian Tribe; or registers or files an application to register a corporation, limited liability company, or other similar entity formed under the laws of a foreign country to do business in the United States by filing a document with the secretary of state or similar office under the laws of a State or Indian Tribe.
A company applicant also includes any individual who directs or controls the filing of a reporting company’s formation document by another person. This ensures that the reporting company provides information on individuals who are responsible for the decision to form a reporting company given that, in many cases, the company applicant may be an employee of a business formation service or law firm, or an associate, agent, or family member who is filing the document on behalf of another individual. In such a case, the individual directing or controlling the formation of a legal entity should not be able to remain anonymous simply by directing another individual to file the requisite paperwork, and must therefore disclose his or her identity to FinCEN along with the individual that actually made the filing.