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What Information Must Be Reported?

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According to the Corporate Transparency Act (CTA), it is compulsory for all "Reporting Companies" to submit a report to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury, revealing specific information. Failure to do so may result in a daily fine of $500. If your company falls within the classification of a reporting company, it is required to furnish a FinCEN report that includes detailed information about each "beneficial owner" and the individual referred to as the "applicant." Additional information can be found in the section titled "Who Must File a FinCEN Report?" for a more comprehensive understanding.

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Precisely defined, a beneficial owner is an individual who, whether directly or indirectly, wields substantial control over the entity or owns and controls at least 25 percent of the entity’s ownership interests. On the other hand, an applicant is the individual who submitted the formation document of the reporting company to the state agency in the state where the entity was established.

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The FinCEN report must include the following information for each beneficial owner and applicant:

• The person’s full legal name.

• The person’s date of birth.

• The person’s current residential or business street address as of the date when the FinCEN report is submitted.

• A unique identifying number, obtained from the person’s: Nonexpired U.S. passport.

  • Nonexpired identification document issued by a State, local government, or Indian Tribe for identification purposes.

  • Nonexpired driver’s license issued by a State.

  • Nonexpired passport issued by a foreign government (if the person doesn’t possess a document mentioned in the previous three points).

• A photograph of the document from which the unique identifying number was derived.

 

As an alternative to inputting the previously mentioned information in the FinCEN report, the reporting company has the option to furnish the FinCEN identifier issued to the person by FinCEN. This option is permissible if the individual has already submitted the specified information to FinCEN, and FinCEN has consequently issued a unique FinCEN identifier for that individual.

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