Many farms and ranches will be required to file “beneficial ownership” information with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury. In 2021, Congress passed a law called the Corporate Transparency Act that requires businesses to report the identity of their owners with the goal of reducing financial crime. Unfortunately, many small businesses like farms and ranches are required to comply with this requirement.
Who must file: Any producer whose farm or ranch employs 20 employees or less, is a corporation, limited liability company (LLC), partnership, or was formed as another type of entity by filing a document with the secretary of state or similar state office is required to file a Beneficial Ownership Report with FinCEN.
When to file: Companies that were registered before January 1, 2024, have until January 1, 2025, to file their report. Any companies created between January 1, 2024, and January 1, 2025, have 90 days from their creation or registration with the state to submit this report to FinCEN. Additionally, any updates or corrections to beneficial ownership information must be submitted within 30 days.
Where to file: To comply with the Corporate Transparency Act, you must fill out a form online at https://www.fincen.gov/boi. The form will require your name, date of birth, residential or business address, and a unique identifying number like your driver’s license or passport number.
Producers are encouraged to consult with their attorneys to determine if the CTA applies. Penalties for non-compliance can include a $500 per late day fine, up to $10,000 in fines, or even prison sentences for refusing to comply with the law.
Resources: For more information, visit https://www.fincen.gov/boi or review FinCEN’s Small Entity Compliance Guide at https://www.fincen.gov/boi/small-entity-compliance-guide. This information is not professional advice, and you should always consult with a tax professional and/or attorney for advice as to whether the Corporate Transparency Act applies to you.
Comments