{"id":3117,"date":"2024-05-24T07:40:35","date_gmt":"2024-05-24T07:40:35","guid":{"rendered":"https:\/\/investmentlawyers.com\/cta\/?page_id=3117"},"modified":"2024-05-24T07:47:09","modified_gmt":"2024-05-24T07:47:09","slug":"chapter3","status":"publish","type":"page","link":"https:\/\/investmentlawyers.com\/cta\/chapter3\/","title":{"rendered":"Chapter3"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"3117\" class=\"elementor elementor-3117\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-25cb679 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"25cb679\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cf9f6ff\" data-id=\"cf9f6ff\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dd67a28 elementor-widget elementor-widget-text-editor\" data-id=\"dd67a28\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<a name=\"03\"><\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d1fbf22 elementor-widget elementor-widget-image\" data-id=\"d1fbf22\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"662\" height=\"119\" src=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/img03.jpg\" class=\"attachment-full size-full wp-image-511\" alt=\"\" srcset=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/img03.jpg 662w, https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/img03-600x108.jpg 600w, https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/img03-300x54.jpg 300w\" sizes=\"(max-width: 662px) 100vw, 662px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bcf2740 elementor-widget elementor-widget-text-editor\" data-id=\"bcf2740\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Only certain reporting companies must include information about their company applicants in their BOI reports. This chapter has two sections to help your company determine whether the requirements apply and, if so, how to identify its company applicants:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cd44bad elementor-widget elementor-widget-text-editor\" data-id=\"cd44bad\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><b>3.1 Is my company required to report its company applicants?<\/b><\/li><li><b>3.2 Who is a company applicant of my company?<\/b><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0646a72 elementor-widget elementor-widget-text-editor\" data-id=\"0646a72\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This chapter generally covers 1010.380(e),\u201cCompany applicant\u201d<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e95f6dd elementor-widget elementor-widget-heading\" data-id=\"e95f6dd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\"><a name=\"3.1\"><\/a>3.1 Is my company required to report its company applicants?<\/h5>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-77e87f4 elementor-widget elementor-widget-text-editor\" data-id=\"77e87f4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This chapter generally covers 1010.380(e),\u201cCompany applicant\u201d<\/p><p>A reporting company <u><b>is required to report its company applicants<\/b><\/u> if it is either a:<\/p><ul><li>domestic reporting company created <b>on or after January 1, 2024;<\/b> or<\/li><li>foreign reporting company first registered to do business in the United States <b>on or after January 1, 2024<\/b>.<\/li><\/ul><p>A reporting company <u><b>is not required to report its company applicants<\/b><\/u> if it is either a:<\/p><ul><li>domestic reporting company created before January 1, 2024; or<\/li><li>foreign reporting company first registered to do business in the United States <b>before<\/b> January 1, 2024.<\/li><\/ul><p><b>Chart 5 \u2013 Company applicant reporting requirement<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d79d92d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d79d92d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-dd074c4\" data-id=\"dd074c4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5f9844b elementor-widget elementor-widget-image\" data-id=\"5f9844b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"624\" height=\"447\" src=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/created.jpg\" class=\"attachment-large size-large wp-image-1682\" alt=\"\" srcset=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/created.jpg 624w, https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/created-600x430.jpg 600w, https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/created-300x215.jpg 300w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1ec275b elementor-widget elementor-widget-text-editor\" data-id=\"1ec275b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The special rule concerning company applicant reporting can be found at 1010.380(b)(2)(iv) and is discussed further in the next chapter (section 4.2).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20a64f7 elementor-widget elementor-widget-heading\" data-id=\"20a64f7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\"><a name=\"3.2\"><\/a>3.2 Who is a company applicant of my company?<\/h5>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dcb9cd3 elementor-widget elementor-widget-text-editor\" data-id=\"dcb9cd3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Each reporting company that is required to report company applicants will have to identify and report to FinCEN at least one company applicant, and at most two. All company applicants must be individuals. Companies or legal entities cannot be company applicants.<\/p><p>There are two categories of company applicants \u2013 the \u201cdirect filer\u201d and the individual who \u201cdirects or controls the filing action.\u201d<\/p><ul><li>The first category (direct filer) must be identified by all reporting companies that have a company applicant reporting requirement.<\/li><li>The second category (directs or controls the filing action) may not be applicable to all reporting companies that have a company applicant reporting requirement. The second category of company applicants is only required to be reported when more than one individual is involved in the filing of the document that created or first registered the company.<\/li><li>If more than one individual is involved in the filing, then two company applicants must be reported.<\/li><li>No reporting company will have more than two company applicants.<\/li><\/ul><p><u><b>Company Applicant Category 1: Direct filer<\/b><\/u><\/p><p>This is the individual who directly filed the document that created a domestic reporting company, or the individual who directly filed the document that first registered a foreign reporting company. This individual would have actually physically or electronically filed the document with the secretary of state or similar office.<\/p><p><u><b>Company Applicant Category 2: Directs or controls the filing action<\/b><\/u><\/p><p>The other possible company applicant is the individual who was primarily responsible for directing or controlling the filing of the creation or first registration document. This individual is a company applicant even though the individual did not actually file the document with the secretary of state or similar office.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-83c47d7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"83c47d7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b71a723\" data-id=\"b71a723\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f45fdfb elementor-widget elementor-widget-text-editor\" data-id=\"f45fdfb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Chart 6 \u2013 Company application definition<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dbbd38e elementor-widget elementor-widget-image\" data-id=\"dbbd38e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"453\" height=\"717\" src=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/company-application.jpg\" class=\"attachment-large size-large wp-image-1711\" alt=\"\" srcset=\"https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/company-application.jpg 453w, https:\/\/investmentlawyers.com\/cta\/wp-content\/uploads\/2024\/05\/company-application-190x300.jpg 190w\" sizes=\"(max-width: 453px) 100vw, 453px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e560427 elementor-widget elementor-widget-text-editor\" data-id=\"e560427\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The following examples illustrate how to identify company applicants in common company creation or registration scenarios.<\/p><p>Example 1: Individual A is creating a new company. Individual A prepares the necessary documents to create the company and files them with the relevant State or Tribal office, either in person or using a self-service online portal. No one else is involved in preparing, directing, or making the filing<\/p><p>Individual A is a company applicant because Individual A directly filed the document that created the company. Because Individual A is the only person involved in the filing, Individual A is the only company applicant. State or Tribal employees who receive and process the company creation or formation documents should not be reported as company applicants<\/p><p><i>Example 2: Individual A is creating a company. Individual A prepares the necessary documents to create the company and directs Individual B to file the documents with the relevant State or Tribal office. Individual B then directly files the documents that create the company. <\/i><\/p><p>Individuals A and B are both company applicants \u2013 Individual B directly filed the documents, and Individual A was primarily responsible for directing or controlling the filing. Individual B could, for example, be Individual A\u2019s spouse, business partner, attorney, or accountant; in all cases, Individuals A and B are both company applicants in this scenario.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Only certain reporting companies must include information about their company applicants in their BOI reports. This chapter has two sections [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/pages\/3117"}],"collection":[{"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/comments?post=3117"}],"version-history":[{"count":0,"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/pages\/3117\/revisions"}],"wp:attachment":[{"href":"https:\/\/investmentlawyers.com\/cta\/wp-json\/wp\/v2\/media?parent=3117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}