The Corporate Transparency Act (CTA) established new rules for a company’s Beneficial Ownership Information Reporting (BOIR). This guide will walk you through everything there is to know about BOIR Filing for Colorado Companies; from when the filing is due, the available exemptions, to surefire ways a Colorado company can remain compliant with the BOI filing requirements.
What is BOI Filing for Colorado Companies?
BOI filing for Colorado companies involves the reporting of important information about a company’s substantial beneficial owners to the Financial Crimes Enforcement Network. Examples of such data include the names, addresses, and unique identifying numbers of persons who either substantially own or control a company.
BOI Filing Requirements for Colorado Companies
Under the CTA, the BOIR filing requirements are imposed on all companies formed or registered in Colorado. The following are the major reporting requirements of a BOIR:
Who Shall File a BOI Report? Corporations, LLCs, and other like business entities that call Colorado their home. The main goal behind BOI filing for Colorado companies is to deliver a blow to illegal financial crimes through by disclosing who the real owners of the businesses are.
What Information is Needed for the BOIR Filing? While preparing this BOI report, the Colorado companies will need to supply the following details in respect of each beneficial owner:
- Full legal name
- Date of birth
- Residential or business address
- Unique identification numbers such as Social Security Number, Passport Number
The information required for BOI filing for Colorado companies gives full accuracy about the actual identity of the individuals who own or control it.
Deadlines for BOI Filing for Colorado companies
Filing deadlines must be met to keep your company away from penalties. Here are the deadlines for BOIR filing for Colorado companies:
- Existing Companies Formed Before 1 January 2024 – The BOI filing is due by 1 January 2025.
- New Companies Formed On or After 1 January 2024 – The BOI report is to be filed by such companies in 90 days of their formation.
A timely BOI filing ensures compliance and avoids huge fines for the Colorado companies.
Exemptions for BOI Filing in Colorado
Not every business entity operating within Colorado has to file the BOI report. Some of these exemptions include:
- Operating companies with more than 20 full-time employees, and gross revenue over $5 million
- Certain regulated entities: banks and insurance companies
- Inactive businesses meeting specific threshold requirements
If your company believes it could be categorized into one of these exemptions, you must confirm its exemption status before starting with the BOIR filing for Colorado companies.
Penalties for Non-Compliance with BOI Filing in Colorado
If you fail to comply with the filing requirements under BOIR, the consequences would be very severe, including but not limited to:
- Fines – $10,000 for willful offences
- Daily Penalties – $500 per day for continued offences
- Criminal Charges – Imprisonment up to two years for serious crimes
There are harsh penalties for failing to meet the deadline and/or providing inaccurate information during the process of BOIR Filing for Colorado Companies. If you have an issue, you should contact FinCEN immediately about possible relief.
How to Complete BOI Filing for Colorado Companies
By following the listed steps, can ensure a seamless filing process for Colorado companies:
- Create an Account on FinCEN’s Website – Your company needs to be registered on the FinCEN portal before filing.
- Gather the Required Information – Gather information concerning all the beneficial owners before commencing the online filing.
- Submit the BOI Report – Fill out the online BOI report form and submit it before the applicable deadline.
Those who are unclear about what to do may want to reach out and get professional advice to guide them with the BOIR Filing for Colorado Companies.
Staying Updated on the Corporate Transparency Act
The Corporate Transparency Act is a moving target. Colorado companies need to continue monitoring updates to this regulation that could affect the BOIR filing process, particularly with the January 1, 2025, effective date looming. Monitoring the FinCEN website or a qualified attorney can be beneficial in achieving compliance.
Conclusion
Proper understanding and compliance with BOIR Filing for Colorado Companies is essential in sustaining compliance and avoiding heavy penalties. When the Corporate Transparency Act is fully enforceable, a Colorado business needs to ensure that the company proactively collects the information required, adheres to deadlines, and finds the exemptions available. This way, your company shall easily pass through the BOI filing process while on good ground with FinCEN.