Introduction
As part of the new Beneficial Ownership Information (BOI) reporting requirements, businesses created or registered after January 1, 2024, must report information about their “company applicants.” But what exactly is a company applicant? In this post, we’ll explain what this term means and who needs to be reported.
Defining a Company Applicant
A company applicant is the individual or individuals involved in filing the documents that create or register a business after January 1, 2024. This includes:
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The Person Who Files: This is the person who physically or electronically submits the documents that form the company, such as articles of incorporation or a certificate of formation. If you know you need to file you can file today easily. If you are unsure you can take our quiz to see if you need to file.
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The Person Who Directs the Filing: If someone else is responsible for directing or controlling the filing process, they are also considered a company applicant. This might include a lawyer, an accountant, or a business consultant who advises on the formation of the company. It’s easy to file your BOI without hiring an expensive person to direct the filing process if you use the File BOI portal, so file today!
Why Company Applicants Matter
The purpose of identifying company applicants is to ensure transparency about who is involved in the creation of a business. This helps the government track the origins of companies and prevents the misuse of business entities for illegal activities.
Examples of Company Applicants
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Example 1: The Business Owner: Sarah decides to start her own business, so she fills out and submits the necessary documents to the state’s business registration office. In this case, Sarah is the company applicant.
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Example 2: The Lawyer: John hires a lawyer, Emily, to handle all the paperwork for his new company. Emily submits the documents on John’s behalf and guides the process. Here, Emily is the company applicant.
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Example 3: The Multiple Applicants: Lisa and Mike are starting a business together. Lisa submits the formation documents, but Mike provided all the instructions and directed the process. Both Lisa and Mike are considered company applicants.
Reporting Company Applicants
When you file your BOI report, you’ll need to include specific information about the company applicants, including:
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Full legal name
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Date of birth
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Residential address
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Identification number (such as a driver’s license or passport number)
If more than one person is involved in the filing process, you must report details for both.
Special Rules for Businesses Created Before January 1, 2024
If your business was created or registered before January 1, 2024, you do not need to report company applicants. This requirement only applies to businesses formed on or after this date.
What If You Miss Reporting a Company Applicant?
If you fail to report a company applicant or make a mistake in the report, you’ll need to file an amendment. It’s important to provide accurate and complete information to avoid penalties.
Conclusion
Understanding the role of a company applicant is essential for complying with the BOI reporting requirements. When you submit your report through File BOI we ensure you enter all of the most important information. By accurately identifying and reporting the individuals involved in your business’s formation, you help promote transparency and accountability. Make sure to include all relevant company applicants in your BOI report to stay compliant with the new regulations.
