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


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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:

  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 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:

Exempted Entities

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

corporate-act
  • 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

Online BOI Report Filing in Connecticut

  • For online filing, reporting companies in Connecticut 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 Connecticut

  • 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 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:

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 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.

business
  • 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 visit the Connecticut Department of Revenue Services website and follow the instructions provided.
Is there a deadline for filing a BOI report in Connecticut?
Yes, the deadline for filing a BOI report in Connecticut is usually March 31st of 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 information about your business activities, income, expenses, and other relevant financial data.
Can I file my BOI report in Connecticut online?
Yes, you can file your BOI report in Connecticut online through the Connecticut Department of Revenue Services website.
Are there any penalties for not filing a BOI report in Connecticut?
Yes, there may be penalties for not filing a BOI report in Connecticut, including late fees and interest charges.
How do I obtain the necessary forms to file a BOI report in Connecticut?
You can download the required forms for filing a BOI report in Connecticut from the Connecticut Department of Revenue Services website.
Can I amend my BOI report in Connecticut after it has been filed?
Yes, you can file an amended BOI report in Connecticut if you discover any errors or omissions in your original filing.
What types of businesses are required to file a BOI report in Connecticut?
Most corporations and limited liability companies (LLCs) are required to file a BOI report in Connecticut.
How do I pay the taxes owed on my BOI report in Connecticut?
You can pay the taxes owed on your BOI report in Connecticut electronically through the Connecticut Department of Revenue Services website.
What should I do if I have not received my BOI report filing instructions from Connecticut?
If you have not received your BOI report filing instructions from Connecticut, you should contact the Department of Revenue Services for assistance.
How do I file a boi report in Connecticut?
To file a boi report in Connecticut, you can visit the Connecticut Department of Energy and Environmental Protection (DEEP) website.
Is there a specific form I need to use when filing a boi report in Connecticut?
Yes, you will need to use the specific boi report form provided by the Connecticut DEEP.
What information is required when filing a boi report in Connecticut?
When filing a boi report in Connecticut, you will need to provide details such as the date and time of the incident, a description of the release or spill, and the location of the incident.
Do I need to report all types of spills or releases in Connecticut?
Yes, in Connecticut, you are required to report all spills or releases that have the potential to cause environmental harm.
How quickly do I need to file a boi report in Connecticut after a spill or release?
In Connecticut, you must file a boi report immediately after becoming aware of a spill or release.
Can I file a boi report in Connecticut online?
Yes, you can file a boi report online through the Connecticut DEEP website.
Are there any fines or penalties for not filing a boi report in Connecticut?
Yes, there are fines and penalties for not filing a boi report in Connecticut, so it is important to comply with reporting requirements.
Who should I contact if I have questions about filing a boi report in Connecticut?
If you have questions about filing a boi report in Connecticut, you can contact the Connecticut DEEP for guidance.
What is the purpose of filing a boi report in Connecticut?
The purpose of filing a boi report in Connecticut is to protect the environment and public health by ensuring that spills and releases are properly managed and cleaned up.
Is there a hotline I can call to report spills or releases in Connecticut?
Yes, you can report spills or releases in Connecticut by calling the Connecticut Department of Energy and Environmental Protection hotline.
How long does it take for a boi report to be processed in Connecticut?
The processing time for a boi report in Connecticut can vary depending on the complexity of the incident, but you can expect a timely response from the authorities.
Are there any reporting requirements for spills involving hazardous materials in Connecticut?
Yes, there are specific reporting requirements for spills involving hazardous materials in Connecticut, so it is important to be aware of these requirements.
Can I file a boi report anonymously in Connecticut?
In Connecticut, you are encouraged to provide your contact information when filing a boi report, but anonymous reports may also be accepted.
What steps should I take to clean up a spill before filing a boi report in Connecticut?
Before filing a boi report in Connecticut, you should take immediate steps to contain and clean up the spill to prevent further environmental damage.
What happens after I file a boi report in Connecticut?
After you file a boi report in Connecticut, the authorities will assess the situation and determine the appropriate response to the spill or release.
Is there a fee for filing a boi report in Connecticut?
There is no fee for filing a boi report in Connecticut, as it is a requirement for protecting the environment and public health.
Can I file a boi report for a spill that occurred in a neighboring state, but may impact Connecticut?
Yes, if a spill occurred in a neighboring state but has the potential to impact Connecticut, you should file a boi report with the Connecticut DEEP.
Are there any exemptions to the boi reporting requirement in Connecticut?
There are limited exemptions to the boi reporting requirement in Connecticut, so it is important to familiarize yourself with the regulations.
How can I monitor the progress of a boi report I filed in Connecticut?
You can contact the Connecticut DEEP to inquire about the status of a boi report you have filed and get updates on the response efforts.
What information will be included in a boi report filed in Connecticut?
A boi report filed in Connecticut will include details such as the nature of the spill or release, the potential impact on the environment, and the actions taken to address the incident.
Can I file a boi report on behalf of someone else in Connecticut?
If you are aware of a spill or release, you can file a boi report on behalf of someone else in Connecticut, but it is important to provide accurate information.
What should I do if I witness a spill or release happening in real-time in Connecticut?
If you witness a spill or release happening in real-time in Connecticut, you should immediately call the authorities and then file a boi report as soon as possible.
How can I access boi reports filed by others in Connecticut?
Boi reports filed by others in Connecticut may be available to the public through the Connecticut DEEP, but some information may be restricted for privacy or security reasons.
Can I amend a boi report after it has been filed in Connecticut?
If you need to make changes to a boi report that has already been filed in Connecticut, you should contact the authorities to discuss the necessary revisions.
Are there any educational resources available to help me understand boi reporting requirements in Connecticut?
Yes, the Connecticut DEEP provides educational resources and guidance to help stakeholders understand boi reporting requirements and fulfill their reporting obligations.
Can I request assistance with boi report filing from the Connecticut DEEP?
Yes, if you need assistance with filing a boi report in Connecticut, you can contact the Connecticut DEEP for support and guidance.
How can I stay informed about boi reporting updates and changes in Connecticut?
To stay informed about boi reporting updates and changes in Connecticut, you can subscribe to newsletters and announcements from the Connecticut DEEP.
Are there any training programs available to help me improve my boi reporting in Connecticut?
Yes, the Connecticut DEEP offers training programs and workshops to help individuals and organizations improve their boi reporting practices and compliance with regulations.
What other reporting requirements should I be aware of in addition to boi reporting in Connecticut?
In addition to boi reporting, you should also be aware of other reporting requirements related to hazardous materials, air quality, and water quality in Connecticut to ensure compliance with environmental regulations.

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 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.

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