No Need for BOI Reporting Updates on Company Applicant Information Changes

Clarifying BOI Reporting Requirements: Company Applicant Information Changes

Navigating the intricacies of the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) often raises questions about the necessity and frequency of updates, particularly concerning company applicant information.

A reporting company is not required to file an updated report for any changes to previously reported information about a company applicant. However, a reporting company must correct inaccuracies in previously reported information about company applicants. Like initial BOI reports, you can file corrected  BOI reports through our secure database.

This article aims to explain this aspect of BOI reporting, offering clarity and guidance for reporting companies.

No Update Required for Changes in Company Applicant Information

Unlike beneficial owner information, where changes must be reported within 30 days, company applicant changes do not need to be reported.

A reporting company is not required to file an updated BOI report for any changes to previously reported information about a company applicant after the initial filing.

Company applicants are:

• The individual who directly files the documentation for the company’s formation or registration; and
• If more than one person is involved in the filing, the individual who is primarily responsible for directing or controlling the filing.

All company applicants must be individuals. Companies or legal entities cannot be company applicants.

Changes in these individuals’ roles or their departure from the company do not trigger a requirement for an updated BOI report.

If more than one individual is involved in the filing, then two company applicants must be reported. No reporting company will have more than two company applicants.

However, information provided about a company applicant is inaccurate, your company must file a corrected BOI report and correct the information no later than 30 days after the date your company became aware of the inaccuracy or had reason to know of it.

Understanding the Distinction: Company Applicants vs. Beneficial Owners

It is crucial to distinguish between company applicants and beneficial owners:

• Company Applicants: These are individuals involved in the formation or registration of the company. Changes in their roles or statuses after registering the company do not impact the company’s BOI reporting obligations.
• Beneficial Owners: These are individuals who own or control at least 25 percent of the company or otherwise exercises substantial control over company. Any changes in the required beneficial owner information must be reported in an Updated BOI report.

Correcting Inaccurate Information on Company Applicants

While updates for changes in company applicant information are not required, the correction of inaccuracies in previously reported information is a different matter. If the initial BOI report contained errors or inaccuracies regarding company applicants, your company must file a Corrected BOI Report within 30 days after becoming aware of the inaccuracy or having reason to know about it.

Steps for Filing a Corrected BOI Report

1. Identify Inaccuracies: Regularly reviewing the information provided in your BOI report is essential to identify any inaccuracies, especially concerning company applicant information.
2. Prepare Corrected Information: Once inaccuracies are identified, gather the accurate information to be reported.
3. File a Corrected Report: Submit the corrected BOI report to FinCEN with us. This should be done as soon as the inaccuracies are discovered but no later than 30 days after becoming aware of it.
4. Maintain Records: Keep detailed records of the inaccuracies identified and the corrections made in the initial BOI Report and any subsequent reports filed. This documentation is crucial for compliance verification and potential audits.

Common Questions and Clarifications

• Q: If a company applicant leaves, do we need to report this?
  • A: No changes in the status or role of company applicants after the initial filing require an updated BOI report.
• Q: What if we discover a mistake in the applicant information after filing the BOI report?
  • A: Any inaccuracies in the initially reported company applicant information should be corrected through a Corrected BOI Report. File your Corrected BOI Report with Us in three simple steps. Fast and easy. No loging or signup.

Implications of Non-Compliance

Failing to correct inaccuracies in company applicant information can lead to civil or criminal penalties. While your company does not need to file Updated BOI Reports to report changes in this information, accuracy at the time of initial filing is critical.

Best Practice: Companies should exercise diligence in their initial BOI reporting and correct any inaccuracies in the company applicant information  as soon as they are identified and no later than 30 days after becoming aware of them. In cases of complexity or uncertainty, you can contact us.

If the initial BOI report contained errors or inaccuracies regarding company applicants, file your Corrected BOI Report with Us. Three simple steps and you are done. No login or signup required. We are the number one choice for Corrected BOI Report filing.