How to File BOI Report in Colorado – Ultimate Guide (2024)


Steve Goldstein
Steve Goldstein
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How to file a BOI Report in Colorado: 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 Colorado, 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.

Colorado, also known as The Centennial State, has a population of 5,997,070. 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 Colorado

What is Beneficial Ownership in Colorado?

Beneficial ownership in Colorado 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:

  1. Has direct or indirect ownership of 25% or more of the entity’s equity interests
  2. 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 Colorado, 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 Colorado 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 Colorado.

BOI Reporting Companies (Entities) in Colorado

Not every company, located in Colorado, 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:

Exempted Entities

However, it is important to note that there are certain entities in Colorado that do not have BOI reporting requirements such as;

corporate-act
  • Sole proprietorships or any business structure that does not require registration under Colorado 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 Colorado?

In Colorado, 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 Colorado has to fill up the form and submit it within the given time. Here are the steps to file the BOIR in Colorado

Online BOI Report Filing in Colorado

  • For online filing, reporting companies in Colorado are required to visit the FinCEN BOIR e-filing page.
  • The first page shows 4 options, Initial Report, Correct Prior Report, Update Prior Report, and Newly Exempt Entity.
  • For the fresh filing, select Initial Report and click NEXT.
  • On the next page, fill out the form for Reporting Company and ask for FinCEN ID.
  • The ‘Company Applicant’ page comes up next. Add the details wherever is required.
  • The next page shows the details of the Beneficial Owner(s). Also, mention if there is an exemption.
  • Submit the online form after sharing your name and email on the final page.
BOI reporting e-filing

Offline BOI Report Filing in Colorado

  • For offline filing, visit the FinCEN BOI Report filing page
  • Download the PDF form from the ‘Prepare BOIR’ option
  • The PDF form requires Adobe Reader 8 or higher, make sure you have this version installed on your device.
  • Save the form on your device.
  • 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.
  • Once filled up, upload the form on the site by clicking on ‘Submit BOIR’.
  • 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.
BOI offline filing

Though it is not very difficult to file a BOI Report on your own, it is recommended to get a professional help. Mainly because of the diverse business structure. We recommend TailorBrands as they not only offer free LLC formation, but also guide you through the BOI reporting process and deadline. That can save you a lot of money and penalty.

LLCBuddy Editors

Reporting Process and Timeline

BOI Reporting effectively becomes mandatory from January 1, 2024, in Colorado and the rest of the United States. All the LLCs in Colorado, Corporations, and other types of businesses registered under Colorado Secretary of State will have to file the report within the given time.

  • Entities in Colorado incorporated or registered before January 1, 2024, will have to file their BOI report before January 1, 2025.
  • Entities in Colorado 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 Colorado SOS or similar authority.
  • Entities in Colorado 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 Colorado 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 Colorado is $500 a day for the company
  • The Criminal Penalty for not filing the BOI Report in Colorado is $10,000
  • Continuing violating rules and non-compliance in Colorado 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 Colorado.

BOI Reporting Required Information in Colorado

The Beneficiary Ownership Information consists of some confidential information about the LLC owners in Colorado. The compulsory information to be given in respect of each beneficial owner includes:

business requirement
  • 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 Colorado 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 Colorado 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 Colorado

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.

business
  • Preventing Illegal Activities: Identifying true owners helps to combat money laundering, terrorist financing, and other financial crimes in Colorado 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 Colorado or forming a corporation in Colorado 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 Colorado.

State Specific Data: Colorado

Capital and Incorporation

  • The capital of Colorado is Denver.
  • The population of Colorado: 5,997,070
  • The Annual GDP of Colorado: 489,340
  • Incorporation in Colorado can be done through various methods including online and offline. For more details, visit Colorado Secretary of State.
  • Incorporation Method in Colorado (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 Colorado (Offline): There’s no offline method of filing the documents

Filing Fees

  • LLC Initial Filing Fee: $50
  • LLC Amendment Fees: $50
  • Annual Fee: $0 because it is not mandatory
  • DBA Filing Fee: $20
  • Incorporation Fee: $50 for filing online
  • Registered Agent Change Fee: $10
  • Corporate Amendment Fee: $25.00

Important Offices

  • State Tax Office: Colorado Department of Revenue
  • State Insurance Office: Colorado Division of Insurance
  • Secretary of State Address: 1700 Broadway, Suite 550, Denver, CO 80290
  • Department of Treasury: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​

Key Contacts

  • Form 2335 Mailing Address: Department of the Treasury Internal Revenue Service Center – Ogden, UT 84201 Fax: 855-214-7520​
  • Filing Method for DBA: one method, online filing
  • Filing Fee for DBA: $20
  • Online Filing for DBA: For online filing, check the Colorado Secretary of State. There, look for the “Trade Names” section. You will get the registration form.
  • Offline Filing for DBA: There is no offline filing available in Colorado

By staying compliant with the BOI reporting requirements and leveraging the resources available in Colorado, businesses can ensure they meet all regulatory obligations efficiently.

FAQs

How do I file a BOI report in Colorado?
To file a BOI report in Colorado, you can visit the Colorado Department of Regulatory Agencies website or contact the division directly.
Is there a deadline for filing a BOI report in Colorado?
Yes, in Colorado, the deadline for filing a BOI report varies depending on the specific requirements set by the Division of Insurance.
What information do I need to include in a BOI report in Colorado?
In Colorado, you’ll typically need to include details about the incident, any witnesses, the parties involved, and any relevant documentation.
Are there specific forms that need to be filled out for a BOI report in Colorado?
Yes, in Colorado, there are specific forms provided by the Division of Insurance for filing a BOI report.
Can I file a BOi report online in Colorado?
Yes, depending on the specific requirements of the Colorado Division of Insurance, you may be able to file a BOI report online.
What happens after I file a BOI report in Colorado?
After filing a BOI report in Colorado, the Division of Insurance will review the information and determine the appropriate course of action.
Is there a fee for filing a BOI report in Colorado?
There may be a fee associated with filing a BOI report in Colorado, depending on the specific circumstances of your case.
How long does it take to process a BOI report in Colorado?
The processing time for a BOI report in Colorado can vary depending on the complexity of the case and the workload of the Division of Insurance.
Can I appeal the decision made on my BOI report in Colorado?
Yes, in Colorado, you may have the right to appeal the decision made on your BOI report by the Division of Insurance.
What should I do if I have questions about my BOI report in Colorado?
If you have questions about your BOI report in Colorado, you can contact the Division of Insurance for assistance.
Are BOI reports confidential in Colorado?
In Colorado, BOI reports are typically considered confidential and are not accessible to the public.
Can I file a BOI report anonymously in Colorado?
Depending on the specific requirements of the Division of Insurance in Colorado, you may be able to file a BOI report anonymously.
How can I track the status of my BOI report in Colorado?
To track the status of your BOI report in Colorado, you can contact the Division of Insurance or check online if applicable.
What should I do if I receive a request for additional information regarding my BOI report in Colorado?
If you receive a request for additional information regarding your BOI report in Colorado, it’s important to provide the requested information promptly.
Can I file a BOI report for a claim that occurred outside of Colorado?
No, in Colorado, the Division of Insurance typically handles BOI reports for incidents that occurred within the state.
How long do I have to file a BOI report after an incident in Colorado?
It’s important to file a BOI report promptly after an incident in Colorado to ensure that all necessary information is fresh and accurate.
Will filing a BOI report in Colorado impact my insurance coverage?
Filing a BOI report in Colorado may have implications on your insurance coverage, so it’s recommended to consult with your insurance provider for guidance.
Are there any limitations on the types of incidents that can be reported in a BOI report in Colorado?
Depending on the specific requirements of the Division of Insurance in Colorado, there may be limitations on the types of incidents that can be reported in a BOI report.
Can I file a BOI report on behalf of someone else in Colorado?
Depending on the circumstances, you may be able to file a BOI report on behalf of someone else in Colorado, but it’s best to consult with the Division of Insurance for guidance.
How can I obtain a copy of my BOI report in Colorado?
To obtain a copy of your BOI report in Colorado, you can typically request it from the Division of Insurance by following their procedures.
Can I file a BOI report for a minor in Colorado?
Yes, you can file a BOI report for a minor in Colorado, but there may be additional requirements to consider when doing so.
What are the consequences of filing a false BOI report in Colorado?
Filing a false BOI report in Colorado can have serious legal consequences, including potential fines or penalties, so it’s important to provide accurate and truthful information.
Can I get legal representation when filing a BOI report in Colorado?
Yes, you have the right to seek legal representation when filing a BOI report in Colorado, especially if the case is complex or involves legal issues.
Are there any resources available to help me with filing a BOI report in Colorado?
Yes, there are resources available in Colorado to assist you with filing a BOI report, including legal services, advocacy organizations, and the Division of Insurance.
Can I file a BOI report for a business or organization in Colorado?
Yes, you can file a BOI report for a business or organization in Colorado, but the process may differ slightly from filing a report for an individual.
What should I do if I believe my BOI report was mishandled in Colorado?
If you believe your BOI report was mishandled in Colorado, you can file a complaint with the Division of Insurance or seek legal advice on the matter.
What types of resolutions can come from filing a BOI report in Colorado?
The resolutions that can come from filing a BOI report in Colorado vary depending on the specifics of the case, but they may include investigations, negotiations, settlements, or enforcement actions.
Can I withdraw my BOI report in Colorado?
Depending on the circumstances, you may be able to withdraw your BOI report in Colorado, but it’s important to consider all factors before doing so.
How can I provide feedback on the BOI reporting process in Colorado?
To provide feedback on the BOI reporting process in Colorado, you can typically contact the Division of Insurance directly or participate in any feedback mechanisms they have in place.
How do I file a boi report in Colorado?
To file a Boi report in Colorado, you can go to the Colorado Department of Health website and follow the instructions provided.
What is the purpose of filing a boi report in Colorado?
Filing a Boi report in Colorado is used to track and investigate potential outbreaks of infectious diseases in the state.
Can I file a boi report in Colorado online?
Yes, you can file a boi report in Colorado online through the Colorado Department of Health website.
Do I need to provide personal information when filing a boi report in Colorado?
Yes, you may need to provide personal information when filing a boi report in Colorado to assist with the investigation process.
How long does it take to file a boi report in Colorado?
The time it takes to file a boi report in Colorado can vary depending on the complexity of the case and the information provided.
Can I file a boi report in Colorado anonymously?
It is typically not recommended to file a boi report in Colorado anonymously, as providing accurate information helps with the investigation process.
Who investigates boi reports in Colorado?
The Colorado Department of Health investigates boi reports in the state to ensure public health and safety.
What happens after I file a boi report in Colorado?
After you file a boi report in Colorado, a public health official may contact you for further information and follow-up.
Is there a deadline for filing a boi report in Colorado?
It is important to file a boi report in Colorado as soon as possible after becoming aware of a potential infectious disease case.
Can healthcare providers file boi reports in Colorado?
Yes, healthcare providers are required to file boi reports in Colorado when they suspect a case of infectious disease.
Where can I find more information about filing a boi report in Colorado?
For more information on filing a boi report in Colorado, you can visit the Colorado Department of Health website or contact them directly.
What are the consequences of not filing a boi report in Colorado?
Failure to file a boi report in Colorado could result in the spread of infectious diseases within the community and potential legal consequences for healthcare providers.
Are there any fees associated with filing a boi report in Colorado?
There are typically no fees associated with filing a boi report in Colorado, as it is a public health service provided by the state.
Can I file a boi report in Colorado for someone else?
If you suspect someone else may have an infectious disease, you can file a boi report in Colorado on their behalf with their consent.
How can I track the status of a boi report I filed in Colorado?
You can track the status of a boi report you filed in Colorado by contacting the Colorado Department of Health and providing your case number.
Is there a specific form to use when filing a boi report in Colorado?
There may be specific forms available for filing a boi report in Colorado, which can be found on the Colorado Department of Health website.
Can I file a boi report in Colorado for a non-traditional healthcare setting?
Yes, you can file a boi report in Colorado for non-traditional healthcare settings such as nursing homes, schools, and workplaces.
What are the most common reasons for filing a boi report in Colorado?
Some common reasons for filing a boi report in Colorado include suspected cases of COVID-19, influenza, and foodborne illnesses.
How does filing a boi report in Colorado help prevent the spread of infectious diseases?
Filing a boi report in Colorado helps public health officials identify and respond to potential outbreaks quickly, preventing further spread of infectious diseases.
Are there any confidentiality laws that protect my information when filing a boi report in Colorado?
Yes, there are state and federal confidentiality laws that protect your personal information when you file a boi report in Colorado.
Can I file a boi report in Colorado for a workplace exposure?
Yes, you can file a boi report in Colorado if you suspect a workplace exposure to an infectious disease to protect the health and safety of employees.
How does the Colorado Department of Health use boi reports to improve public health?
The Colorado Department of Health uses boi reports to monitor and track infectious diseases, develop prevention strategies, and provide public health education.
Are there specific guidelines for filing a boi report in Colorado during a public health emergency?
Yes, there may be specific guidelines for filing a boi report in Colorado during a public health emergency, which can be found on the Colorado Department of Health website.
Can I file a boi report in Colorado if I suspect a neighbor has an infectious disease?
Yes, you can file a boi report in Colorado if you suspect a neighbor has an infectious disease to help protect your community from potential outbreaks.
How can I protect my privacy when filing a boi report in Colorado?
You can protect your privacy when filing a boi report in Colorado by only providing necessary information and keeping communication confidential with public health officials.
Are there resources available to help me file a boi report in Colorado?
Yes, there are resources available to help you file a boi report in Colorado, such as informational guides, contact information for public health officials, and online assistance.
Can I file a boi report in Colorado for a group of people exposed to an infectious disease?
Yes, you can file a boi report in Colorado for multiple people exposed to an infectious disease to ensure that proper measures are taken to prevent further spread.
How can I stay informed about infectious disease outbreaks in Colorado?
You can stay informed about infectious disease outbreaks in Colorado by regularly checking the Colorado Department of Health website, signing up for alerts, and following local news updates.
Is it mandatory to file a boi report in Colorado if I suspect an infectious disease?
While filing a boi report in Colorado is not mandatory for the general public, it is highly recommended to help protect public health and safety.

Also Read

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 Colorado, especially, small and medium businesses must file the Business Ownership Information Report to combat growing financial crimes. In Colorado, the companies must understand the obligations to comply with the rules.

In Colorado, 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.

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