Yes. A reporting company can have no more than 2 company applicants. If only one person was involved in preparing and filing the relevant document, then only that person should be reported as a company applicant. Only reporting companies formed or registered on or after January 1, 2024, will have to report their company applicants. Companies created or registered before January 1, 2024, do not have to report their company applicants. The following examples issued by FinCEN illustrate how to identify company applicants in common company creation or registration scenarios.
Example 1: Sole Company Applicant
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. 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.
Example 2: Two Company Applicants
Individual A is creating a new 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. Individuals A and B are both company applicants-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's spouse, business partner, attorney, or accountant; in all cases, Individuals A and B are both company applicants in this scenario.
More information regarding the CTA and Beneficial Ownership Reports is available under the
CTAComply™ section
of our
website, as well as in
FinCEN's Small Entity Compliance Guide and on
FinCEN's website.