The Corporate Transparency Act… Part 3 – Applicants

In prior blogs, I wrote about the federal Corporate Transparency Act (“CTA”) passed on January 1, 2021. Implementation of certain aspects of the CTA were deferred until the United States Department of Treasury could pass rules that clarify the new law. The regulatory process is progressing. Consider the following…

The Corporate Transparency Act and its Regulations…

The CTA will require most existing and new corporate entities (e.g., corporations, limited liability companies, etc.) to report personal information about company owners and incorporators to the Department of Treasury. The face of the CTA raised many questions as to the precise scope of the law and its implementation. On April 5, 2021, the Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury issued an advance notice of proposed rulemaking (ANPRM). The ANPRM invited public commentary on the CTA and requested input on forty-eight specific questions.

After receiving commentary, FinCEN published a Notice of Proposed Rulemaking (NPRM) on December 7, 2021. The proposed rules in FinCEN’s recent NPRM attempt to clarify three questions surrounding the reporting requirements under the CTA: Who must file; When they must file; and What information they must file. The last issue of my blog addressed the question what as to beneficial owner information. This blog addresses the question of what as to applicant information. The questions of when will be addressed in a future blog.


The CTA states that a reporting company must file a report that includes the name, date of birth, current residential or business address, and a unique identifying number (i.e., either one issued by FinCEN or one from an acceptable identification document) of each the applicant of the company. The CTA defined applicant as individual who files an application to form a corporation, limited liability company, or other similar entity under state law.

Who can be an applicant? FinCEN’s NPRM expands the definition to include (1) any individual who files an application, including an employee of a company that provides business service as a corporate or formation agent (i.e., a “company applicant”), and (2) any individual who directs or controls the filing of such a document by another person. Thus, the NPRM broadens the definition such that multiple individuals may be deemed an applicant in connection with the formation of a single corporate entity.

Which address? FinCEN’s NPRM creates two rules regarding applicant addresses. For a “company applicant” (described above), the business address of the applicant will suffice. For all other applicants, the residential address used by the applicant for tax purposes must be reported.


The CTA and its regulations will continue to be watched and analyzed in the coming weeks and months. Please stay tuned or reach out to me for more information about how this may impact you and your company.


PLEASE NOTE: This blog is merely for the general interest of the reader. It is not legal advice or opinion and it does not create an attorney-client relationship. Please call me at 973-921-0600 if you’d like to have a free initial telephone consultation or learn more about me or my practice. Thank you.