What is an Applicant?
An Applicant refers to an individual who submits the required paperwork to form a new legal entity, such as a corporation or limited liability company (LLC). Under the Corporate Transparency Act (CTA), the applicant is often the person responsible for filing the formation documents with the relevant government authorities.
In the context of Beneficial Ownership Information (BOI) reporting, the applicant plays a critical role. They ensure that all required details about the beneficial owners are properly submitted to FinCEN, as mandated by the CTA. The applicant may be a business owner, attorney, or any authorized person managing the legal formation process of the entity. Ensuring compliance with the CTA is a key responsibility of the applicant, as failure to do so can result in penalties.
