What You Need to Know About Company Applicants

With the upcoming regulatory changes bought forth by the enactment of the Corporate Transparency Act, companies established on or after January 1, 2024 will be required to submit Beneficial Ownership Information (BOI) to FinCEN, a bureau of the U.S. Department of Treasury. 

Need more details on the Corporate Transparency Act? Check out our blog post for an introduction. You can also find further details about BOI Reports here. 

Newly formed entities will be required to submit company applicant details with their BOI reports. One company applicant is required but two may be listed. 

There are two distinct types of company applicants:

Direct Filer

Every company formed on or after January 1, 2024 will be required to include a direct filer on their BOI report. The direct filer is the person who physically submits the company's formation or incorporation documents to the Secretary of State.

If you choose to utilize The Incorporators' services to form your new entity, the individual from our team who submits the documents will serve as the direct filer. We will provide you with the necessary information to include in your BOI Report.

Directs or Controls the Filing Action

This designation pertains to the person who directly makes the decision to establish the new entity. Although they may not personally submit the documents, they have directed the formation of the entity.

Example

On January 30, 2024, you decide to form a new LLC. You place an order for a Basic E-Kit LLC package on theincorporators.com to form your Delaware LLC. 

When your order is complete, you receive an email from a member of The Incorporators staff with your Articles of Formation, signed and sealed by the Delaware Secretary of State. Your LLC is official. 

Within 30 days you are required to submit a BOI report to FinCEN. That report will include your company applicant information. In this case, the direct filer is the staff member from The Incorporators who completed the filing on your behalf. You will receive the necessary direct filer details in the email with your order. In this case, you are the company applicant who directed the filing action, so your details would be included as the second company applicant.

If you have further questions, take a look at our Corporate Transparency Act FAQs page here. We will continue to keep you updated on any changes to the upcoming requirements.