BOI Report Essentials: A Guide for Company Applicants

In the complex world of business regulations, staying informed and compliant is crucial for success. One area that’s been garnering significant attention lately is the concept of “Company Applicants” in relation to FinCEN (Financial Crimes Enforcement Network) reporting requirements. Understanding this concept is not just a matter of ticking boxes, it’s essential for ensuring your business meets FinCEN’s requirements seamlessly and avoids potential compliance issues.

Welcome to this installment of our BOI reporting series. Today, we’re diving deep into the world of company applicants. We’ll explore what a company applicant is, unpack the reporting requirements, and highlight why it’s critical for businesses to identify and report applicants accurately. 

Defining the Company Applicant

Who exactly is a company applicant? It’s important to understand that the requirement to report company applicants only applies to reporting companies created or registered on or after January 1, 2024. If your company falls into this category, you’ll need to know that up to two individuals can qualify as company applicants:

1. The individual who directly files the document that creates or registers the company.
2. If more than one person is involved in the filing, the individual who is primarily responsible for directing or controlling the filing.

This dual definition ensures that both the person handling the paperwork and the person calling the shots (if they’re different) are accounted for in the reporting process.

Which Companies Need to File?

Not all companies are required to report their company applicants to FinCEN. The requirement depends on when your company was created or registered. Here’s the breakdown:

Companies Required to Report Company Applicants:

• Domestic reporting companies created on or after January 1, 2024
• Foreign reporting companies registered to do business in the United States on or after January 1, 2024

Companies Not Required to Report Company Applicants:

• Domestic reporting companies created before January 1, 2024
• Foreign reporting companies registered for business in the United States before January 1, 2024

What Information is Required?

If your reporting company falls into the category required to submit details of company applicants for BOI filing, you’ll need to provide the following information for each applicant:

1. Full Legal Name
2. Date of Birth
3. Address

Note: The person who creates or registers the papers of the reporting company must report their business street address instead of their residential address.

1. Unique identifying number, issuing jurisdiction, and an acceptable identification document image. This can include:
   • State Driving license
   • U.S. passport
   • Identification document issued by a state, local government, or tribe
   • Foreign passport

If the company applicant has already obtained a FinCEN identifier, they can provide this instead of reporting all the above information again. 

Types of Company Applicants

When it comes to BOI reporting, FinCEN has defined two distinct categories of company applicants. Understanding which category you fall into is crucial for accurate reporting. Let’s break it down:

1. Direct Filer

This category includes individuals who are directly responsible for filing the documents that create or register a company. 

The direct filer is the person who physically or electronically submits the necessary paperwork to the Secretary of State or a similar office. They handle the actual process of filling out and submitting the required documents, whether on paper or online.

2. Individual Who Directs or Controls the Filing Action

This second category may not apply to all reporting companies. 

This individual may not physically file the documents but is primarily responsible for directing or controlling the filing process. This category comes into play when multiple individuals are involved in the company formation or registration process.

Note: Even though this person doesn’t directly file the documents, they’re still considered a company applicant for BOI reporting purposes.

Wrapping It Up

The BOI reporting requirement is part of a broader effort to combat money laundering, tax fraud, and other financial crimes. By providing this information, you’re helping to create a more transparent business environment.

Compliance isn’t just about following rules but protecting your business. Failing to file required BOI reports can result in civil and criminal penalties. 

While this guide provides a solid overview, regulations can be complex. In the end, being a savvy company applicant means more than just filing paperwork. It’s about understanding your role in the bigger picture of business transparency and integrity. 

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