Many farms and ranches are going to be required to file Beneficial Ownership Information by the end of the year. The Corporate Transparency Act requires many small businesses, including farms and ranches, to report their ownership details to the Financial Crimes Enforcement Network (FinCEN). This law aims to reduce financial crimes by tracking who owns and controls companies. The mandate will impact agricultural operations with less than 20 employees that are structured as corporations, limited liability companies, or entities registered with the secretary of state.
Businesses registered before January 1 of this year will need to file Beneficial Ownership Information by January 1, 2025. Those registered in 2024 have 90 days from creation to file and from 2025 onwards, any updates will need to be filed within 30 days. Producers are being advised to consult with attorneys or tax professionals to ensure compliance with the requirements, to avoid penalties such as hefty fines and possible jail time. Forms and other important resources are available on the FinCEN website.
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Brian German
Ag News Director / AgNet West