How to File BOI Report in Connecticut – Ultimate Guide (2024) (original) (raw)
How to file a BOI Report in Connecticut: Since the Corporate Transparency Act, the Beneficial Ownership Information (BOI) principle has become an important aspect of the regulatory framework for Limited Liability Companies, Corporations, and all types of business structures. This act aims to increase transparency and fight against illegal financial activities by requiring businesses to disclose information about beneficial owners. In Connecticut, companies must comply with these BOI reporting obligations, and this guide will give a comprehensive overview of the processes involved, entities affected, and compliance actions that must be put in place.
Connecticut, also known as The Constitution State, has a population of 3,615,499. That makes the state small business friendly. According to the act, small and medium-sized businesses have to file BOI reports. In this article, LLCBuddy editors shared the latest update and mandate on filing BOI reports in Connecticut.
What is Beneficial Ownership in Connecticut?
Beneficial ownership in Connecticut entails individuals who own or control an entity ultimately even though legal ownership rests with some other person. These persons may have significant influence over it or hold substantial interest therein as owners. Identifying who qualifies as a beneficial owner is a critical first step in complying with BOI reporting requirements. To be a beneficial owner, one must meet at least one of the following:
- Has direct or indirect ownership of 25% or more of the entity’s equity interests
- Directly or indirectly exercises significant control over the entity
It should be noted that beneficial ownership can involve complicated ownership structures; therefore entities should conduct thorough assessments of their organizational structure and holdings.
Beneficial Ownership Information Reporting
The BOI (Beneficial Ownership Information) Report is a memo or document that every small and medium-sized business (exemption applicable) has to file with the Financial Crimes Enforcement Network (FinCEN). In Connecticut, any LLC that is eligible to enlist under the reporting company must file the BOI Report within the given period.
It is not only mandatory for all businesses in Connecticut but also can lead to heavy monetary penalties along with imprisonment. There are many reasons why the Corporate Transparency Act was started and BOI Report filing becomes mandatory for all businesses in Connecticut.
BOI Reporting Companies (Entities) in Connecticut
Not every company, located in Connecticut, is required to file BOI reports with FinCEN. Only the eligible companies (Reporting Companies) are liable to file the BOI report. Following are the requirements for BOI reporting,
Entities Required to Report
There are certain entities that are considered “Reporting Companies” as per the Corporate Transparency Act and must report beneficial ownership information. Normally, these include:
- Corporations
- Limited Liability Companies (LLCs)
- Professional Limited Liability Companies (PLLCs)
- Other similar entities are formed by filing a document with Connecticut Secretary of State or its equivalent.
Exempted Entities
However, it is important to note that there are certain entities in Connecticut that do not have BOI reporting requirements such as;
- Sole proprietorships or any business structure that does not require registration under Connecticut SOS.
- Large entities (more than 20 employees with $5M revenue)
- Tax-exempt organizations
- Inactive entities meeting specific criteria
- Subsidiaries of exempt entities
- Complex ownership that is not publicly known
For PLLCs, selected types of companies get to file BOI reports. Small PLLCs that do not meet the eligibility of reporting companies are exempted from filing BOIR. Besides, PLLCs that are already under stringent regulatory authority like the medical or law field, might get an exemption too.
List of Entities Exempted from BOI Reporting According to FinCEN
Securities reporting issuer
Governmental authority
Bank
Credit union
Depository institution holding company
Money services business
Broker or dealer in securities
Securities exchange or clearing agency
Other Exchange Act registered entity
Investment companies or investment advisers
Venture capital fund adviser
Insurance company
State-licensed insurance producer
Commodity Exchange Act registered entity
Accounting firm
Public utility
Financial market utility
Pooled investment vehicle
Tax-exempt entity
Entity assisting a tax-exempt entity
Large operating company
Subsidiary of certain exempt entities
Inactive entity
Entities should review their classification carefully in order to ascertain if they fall under the requirement for reporting or qualify for an exemption. It is recommended to consult an expert before you start filing your BOI Report. Also, not only the above-mentioned sectors but also the size and structure of the business matters when it comes to filing the report. Hence, it is important to consult an expert beforehand.
How to File a BOI Report in Connecticut?
In Connecticut, you can file your BOI report in two ways. The report can be filed online or offline. The process is pretty simple. There is an online and offline (PDF) form available. The reporting company in Connecticut has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Connecticut
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Online BOI Report Filing in Connecticut
- Step 1: For online filing, reporting companies in Connecticut are required to visit the FinCEN BOIR e-filing page.
- Step 2: The first page shows 4 options, Initial Report, Correct Prior Report, Update Prior Report, and Newly Exempt Entity.
- Step 3: For the fresh filing, select Initial Report and click NEXT.
- Step 4: On the next page, fill out the form for Reporting Company and ask for FinCEN ID.
- Step 5: The ‘Company Applicant’ page comes up next. Add the details wherever is required.
- Step 6: The next page shows the details of the Beneficial Owner(s). Also, mention if there is an exemption.
- Step 7: Submit the online form after sharing your name and email on the final page.
Offline BOI Report Filing in Connecticut
- Step 1: For offline filing, visit the FinCEN BOI Report filing page
- Step 2: Download the PDF form from the ‘Prepare BOIR’ option
- Step 3: The PDF form requires Adobe Reader 8 or higher, make sure you have this version installed on your device.
- Step 4: Save the form on your device.
- Step 5: Fill it up with the correct information. Make sure to select the ‘Initial Report’ if you’re filing it afresh. For correction or updating the previous form, select the other options.
- Step 6: Once filled up, upload the form on the site by clicking on ‘Submit BOIR’.
- Step 7: On the Submit page, you will have to provide your name and email. Click on the ‘upload document’ section to upload the PDF form and submit it.
Reporting Process and Timeline
BOI Reporting effectively becomes mandatory from January 1, 2024, in Connecticut and the rest of the United States. All the LLCs in Connecticut, Corporations, and other types of businesses registered under Connecticut Secretary of State will have to file the report within the given time.
- Entities in Connecticut incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
- Entities in Connecticut incorporated or registered on or after January 1, 2024, will have to file their BOI report within 90 working days from the date of completion of company registration with Connecticut SOS or similar authority.
- Entities in Connecticut incorporated or registered on or after January 1, 2025, will have to file their BOI report within 30 working days from the date of completion of company registration with Connecticut SOS or similar authority.
Penalties for Non-Compliance with CTA (BOI Report Filing)
The authority decides to make it more difficult for the companies that fail to comply with the Corporate Transparency Act or BOI report filing. Following are the monetary and other penalties for non-compliance,
- The Civil Penalty for missing the deadline in Connecticut is $500 a day for the company
- The Criminal Penalty for not filing the BOI Report in Connecticut is $10,000
- Continuing violating rules and non-compliance in Connecticut can lead to 2 years imprisonment
The FinCEN makes sure that every reporting company must file the BOI report as soon as they meet the eligibility criteria. The penalty is heavy, especially for small businesses in Connecticut.
BOI Reporting Required Information in Connecticut
The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Connecticut. The compulsory information to be given in respect of each beneficial owner includes:
- Reporting Company legal name
- Alternative or DBA Name (if any)
- Tax Identification type
- Country/Jurisdiction of Formation
- Address (number, street, and apt. or suite no.)
- Individual’s Full Legal Name
- Date of birth
- Current Address
- Identifying document (Type, Number, Issuing Jurisdiction, Image)
- Beneficial Owner Details (Legal Name, FinCEN ID, Address, DOB)
Entitles should confirm that the information given is correct and up-to-date as any inconsistencies or inaccuracies may attract penalties.
Ensuring their BOI reports are accurate and updated is a responsibility that these bodies have. Disputes or concealed information, therefore, need to be attended to quickly and openly as this is essential in compliance maintenance. Should organizations fail to do this, they may invite increased scrutiny with possible penalties imposed against them.
Privacy and Data Security
While the requirements for BOI reporting in Connecticut aim at increasing transparency levels, there are practical challenges faced by entities regarding the identification and disclosure of beneficial ownership information. These may include:
- Complexity in identifying beneficial ownership for entities with intricate ownership structures or multi-layered holding companies.
- Difficulties in obtaining accurate and up-to-date information from beneficial owners, particularly where ownership interests are held indirectly or via intermediaries.
- This places an additional burden on small businesses which will find it hard to deploy enough resources and personnel to deal with compliance matters.
Entities can overcome these hurdles through engagement of professionals’ advice; and having internal mechanisms that strengthen their capacity to communicate with their beneficiaries.
Regulatory and Legal Considerations
In addition to the issues above, entities in Connecticut must also navigate numerous regulatory and legal considerations when reporting BOI. These include:
- Balancing transparency with legitimate privacy concerns, especially for individuals who may be exposed to personal safety risks or other sensitive situations.
- Addressing international implications and cross-border ownership structures since BOI reporting requirements can vary across jurisdictions.
- Compliance with other relevant legislations such as anti-money laundering (AML) laws and know-your-customer (KYC) regulations is necessary as well.
What helps entities address these concerns is consulting the legal fraternity on changes occurring within the regulatory space.
Anticipated Changes and Updates
With time, FinCEN together with other relevant agencies will provide further guidance on complying with these reporting requirements as financial crime evolves. For instance, new changes could affect how they comply with these requirements. Additionally, in the future, there is a possibility of expanding or modifying the reporting requirements to deal with emerging issues or any possible loopholes.
Impact on Businesses and Financial Sector in Connecticut
The introduction of BOI reporting requirements will have profound effects on both corporate entities and the financial sector as a whole. Likely consequences could include:
- Increased administrative burdens and compliance costs for firms, especially at the early stages of implementation.
- Enhanced due diligence procedures by financial institutions to verify the accuracy of BOI reports and identify potential red flags.
- Business practices may change leading to ownership structures that are more flexible to fit into new transparency needs.
- Entities that have complex ownership arrangements or those operating internationally may face some difficulties.
Nonetheless, in the long run, it can be expected that this law would go towards creating an environment where business is transparent and accountable thus enhancing trust and integrity within the financial system.
Significance of Reporting Beneficial Ownership Information
Reporting BOI is essential for several reasons. We have come up with three main reasons that CTA pointed out for having BOI reporting.
- Preventing Illegal Activities: Identifying true owners helps to combat money laundering, terrorist financing, and other financial crimes in Connecticut since bad actors cannot hide behind complex corporate structures.
- Enhancing Transparency: It ensures corporate transparency and accountability so that entities cannot operate under cover but are required to reveal who their beneficial owner(s) are.
- Facilitating Law Enforcement: Accurate data on BOI allows law enforcement authorities to investigate and prosecute fraudulent activities better thus protecting a fair business environment.
Starting an LLC in Connecticut or forming a corporation in Connecticut can be an eyewash of hiding other shady activities or illegal businesses. Companies often create shell companies to money launder. This reporting was started to prevent such activities in Connecticut.
State Specific Data: Connecticut
Capital and Incorporation
- The capital of Connecticut is Hartford.
- The population of Connecticut: 3,615,499
- The Annual GDP of Connecticut: 323,825
- Incorporation in Connecticut can be done through various methods including online and offline. For more details, visit Connecticut Secretary of State.
- Incorporation Method in Connecticut (Online): Get the online form from Secretary of State, fill it up, and submit. Don’t refresh the page during the process. It will erase everything.
- Incorporation Method in Connecticut (Offline): Send the form by mail to Business Service Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115. Or drop it off in person to Business Services Division, Connecticut Secretary of the State, 165 Capitol Ave., Suite 1000, Hartford, CT 06106.
Filing Fees
- LLC Initial Filing Fee: $120
- LLC Amendment Fees: $60
- Annual Fee: $80
- DBA Filing Fee: $10
- Incorporation Fee: $250 for filing online, in-person and by mail
- Registered Agent Change Fee: $50
- Corporate Amendment Fee: $120.00
Important Offices
- State Tax Office: Connecticut Department of Revenue Services
- State Insurance Office: Connecticut Insurance Department
- Secretary of State Address: Business Service Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115
- Department of Treasury: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734
Key Contacts
- Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Kansas City, MO 64999 Fax: 855-887-7734
- Filing Method for DBA: one method, by mail
- Filing Fee for DBA: $10
- Online Filing for DBA: There is no online filing available
- Offline Filing for DBA: For filing by mail, you must download the form, and send it to the Business Service Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115
By staying compliant with the BOI reporting requirements and leveraging the resources available in Connecticut, businesses can ensure they meet all regulatory obligations efficiently.
FAQs
How do I file a boi report in Connecticut?
To file a boi report in Connecticut, you can contact the Connecticut Department of Insurance.
Is there a deadline for filing a boi report in Connecticut?
Yes, boi reports in Connecticut must be filed by a specific deadline each year.
What information do I need to include in my boi report in Connecticut?
When filing a boi report in Connecticut, you will need to provide detailed information about your insurance operations in the state.
Where can I find the necessary forms to file a boi report in Connecticut?
You can find the necessary forms to file a boi report in Connecticut on the Connecticut Department of Insurance website.
Are there any fees associated with filing a boi report in Connecticut?
There may be fees associated with filing a boi report in Connecticut, so it is important to check with the Connecticut Department of Insurance.
Can I file my boi report in Connecticut online?
Yes, many insurance companies are able to file their boi report in Connecticut online.
What happens if I miss the deadline to file my boi report in Connecticut?
Failing to file your boi report in Connecticut by the deadline may result in penalties or sanctions.
Do I need to file a separate boi report for each insurance product in Connecticut?
You may need to file separate boi reports for each insurance product offered in Connecticut.
How will I know if my boi report was received and accepted in Connecticut?
You should receive confirmation from the Connecticut Department of Insurance once your boi report has been successfully filed.
Can I request an extension for filing my boi report in Connecticut?
It is possible to request an extension for filing your boi report in Connecticut, but it is subject to approval.
What is the purpose of filing a boi report in Connecticut?
Filing a boi report in Connecticut allows the state to monitor and regulate insurance activities within its jurisdiction.
How can I learn more about the requirements for filing a boi report in Connecticut?
To learn more about the requirements for filing a boi report in Connecticut, you can visit the Connecticut Department of Insurance website or contact their office directly.
Do all insurance companies need to file a boi report in Connecticut?
It is important to check with the Connecticut Department of Insurance to determine if your insurance company is required to file a boi report in the state.
What should I do if I have questions or need assistance with filing my boi report in Connecticut?
If you have questions or need assistance with filing your boi report in Connecticut, you can reach out to the Connecticut Department of Insurance for help.
Can I amend my boi report after it has been filed in Connecticut?
Yes, you may be able to submit an amended boi report in Connecticut if there are errors or changes that need to be made.
Are there any training resources available to help with filing a boi report in Connecticut?
Yes, the Connecticut Department of Insurance may offer training resources or guidance to assist insurance companies with filing their boi report.
What is the penalty for not filing a boi report in Connecticut?
The penalty for not filing a boi report in Connecticut may vary but could include fines, sanctions, or other disciplinary actions.
Can I file my boi report in Connecticut by mail?
Yes, you can typically file your boi report in Connecticut by mail if you prefer to do so.
Do I need to submit any supporting documents with my boi report in Connecticut?
It is possible that you may need to submit supporting documents along with your boi report in Connecticut, depending on the specific requirements.
Can I file a boi report for multiple states including Connecticut?
Yes, some insurance companies may be required to file boi reports for multiple states, including Connecticut, if they conduct business across state lines.
Does Connecticut require boi reports on a annual basis?
Yes, boi reports in Connecticut are typically required to be filed annually.
Can I file my boi report in Connecticut electronically?
Yes, electronic filing of boi reports is common in Connecticut and can be a convenient option for insurance companies.
Are there any online resources available to help with filing a boi report in Connecticut?
Yes, the Connecticut Department of Insurance website may have online resources, forms, and guides to assist with filing a boi report.
How long does it typically take to file a boi report in Connecticut?
The time it takes to file a boi report in Connecticut may vary depending on the complexity of your insurance operations and how well-prepared you are with the necessary information.
Can I file a boi report in Connecticut without a licensed insurance agent?
Generally, insurance companies filing a boi report in Connecticut will need to work with a licensed insurance agent or compliance specialist to ensure that all requirements are met.
What should I do if I receive a notice of deficiency for my boi report in Connecticut?
If you receive a notice of deficiency for your boi report in Connecticut, it is important to take action to correct any errors or omissions as soon as possible.
Are there any exemptions available for filing a boi report in Connecticut?
Some insurance companies may be eligible for exemptions from filing a boi report in Connecticut, so it is important to check with the state insurance department.
Can I request a copy of my filed boi report from the Connecticut Department of Insurance?
Yes, you should be able to request a copy of your filed boi report from the Connecticut Department of Insurance for your records.
How can I confirm that my boi report has been processed and accepted in Connecticut?
You can follow up with the Connecticut Department of Insurance to confirm that your boi report has been processed and accepted satisfactorily.
How do I file a BOI report in Connecticut?
To file a BOI report in Connecticut, you can submit it online through the Connecticut Department of Labor website.
When is the deadline to file a BOI report in Connecticut?
The deadline to file a BOI report in Connecticut is typically within 10 business days of receiving the notice.
Can I request an extension to file a BOI report in Connecticut?
Yes, you can request an extension to file a BOI report in Connecticut by contacting the Connecticut Department of Labor.
What information do I need to include in my BOI report in Connecticut?
In your BOI report in Connecticut, you will need to include detailed information about the business operations and the reason for the cited violation.
How long does it take to process a BOI report in Connecticut?
The processing time for a BOI report in Connecticut can vary, but you can expect to receive a response within a few weeks.
What happens if I don’t file a BOI report in Connecticut?
If you fail to file a BOI report in Connecticut, you may face penalties or fines from the Connecticut Department of Labor.
Can I appeal the findings of a BOI report in Connecticut?
Yes, you can appeal the findings of a BOI report in Connecticut by following the appeals process outlined by the Connecticut Department of Labor.
Are there any fees associated with filing a BOI report in Connecticut?
There are no fees associated with filing a BOI report in Connecticut.
Can I file a BOI report in Connecticut anonymously?
No, you cannot file a BOI report in Connecticut anonymously. Your information will be kept confidential, but you must provide your contact details.
What should I do if I receive a BOI report in Connecticut?
If you receive a BOI report in Connecticut, it is important to review the allegations and respond promptly with any necessary information.
Also Read
- Alabama BOI Report
- Alaska BOI Report
- Arizona BOI Report
- Arkansas BOI Report
- California BOI Report
- Colorado BOI Report
- Connecticut BOI Report
- Delaware BOI Report
- DC BOI Report
- Florida BOI Report
- Georgia BOI Report
- Hawaii BOI Report
- Idaho BOI Report
- Illinois BOI Report
- Indiana BOI Report
- Iowa BOI Report
- Kansas BOI Report
- Kentucky BOI Report
- Louisiana BOI Report
- Maine BOI Report
- Maryland BOI Report
- Massachusetts BOI Report
- Michigan BOI Report
- Minnesota BOI Report
- Mississippi BOI Report
- Missouri BOI Report
- Montana BOI Report
- Nebraska BOI Report
- Nevada BOI Report
- New Hampshire BOI Report
- New Jersey BOI Report
- New Mexico BOI Report
- New York BOI Report
- North Carolina BOI Report
- North Dakota BOI Report
- Ohio BOI Report
- Oklahoma BOI Report
- Oregon BOI Report
- Pennsylvania BOI Report
- Rhode Island BOI Report
- South Carolina BOI Report
- South Dakota BOI Report
- Tennessee BOI Report
- Texas BOI Report
- Utah BOI Report
- Vermont BOI Report
- Virginia BOI Report
- Washington BOI Report
- West Virginia BOI Report
- Wisconsin BOI Report
- Wyoming BOI Report
In Conclusion
In the world of business, conducting illicit monetary transactions is not a new thing. To prevent that the Corporate Transparency Act came into the picture. Businesses in Connecticut, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Connecticut, the companies must understand the obligations to comply with the rules.
In Connecticut, before you start filing the BOI Report, there are a few important points to note. Important points worth noting are:
- Identifying beneficial owners from their control or ownership interests over the entity.
- Reporting accurate information at all times including names, dates of birth, addresses, and identification details about beneficiaries.
- Timely filing of the initial reports and updating the reports in case of changes.
- When required, involve reputable third-party service providers to assist in the filing process.
- Ensure compliance with relevant penalties for non –compliance.
- Deal with practical challenges and legal issues related to BOI reporting.
- Keep abreast of future developments and advice from relevant bodies.
Filing the BOI Report does not require complicated steps, however, it definitely requires an expert to proceed. We recommend TailorBrands, one of the best LLC formation services that not only offers free LLC formation but also offers BOI Reporting at a very reasonable cost.