PIERRE, S.D. – A new law will require some ranchers, farmers and businesses to file reports about their business with the government. In 2021 congress enacted the congressional transparency act to stop more financial crime, it requires businesses to verify the identity of their owners with the government. That law goes into effect this year.
The Corporate Transparency Act (CTA) is intended to stop tax fraud, money laundering, and financing for terrorism by capturing more ownership information from US businesses and companies that operate within our nation’s borders.
The law requires businesses to submit a beneficial ownership information (BOI) Report to the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The documents provide details identifying individuals who are associated with the company. Reporting details include business information, legal name, trademarks, and beneficial owner information.
The chart below gives more information about which businesses need to file with FinCEN.
Courtesy: U.S. Chamber of Commerce
Iowa state agricultural law expert Kristine Tidgren says that some ranchers, farmers and related businesses will be required to register.
”If you’re just a rancher who ranches in your own name and you haven’t set up any sort of entity like an LLC, you won’t have to do this reporting. But if you’re a limited partnership you had to go to the secretary of state’s office to get that limited liability protection so you’ll be subject to this as well.”
LLC’s and Corporations are included in the Corporate Transparency Act. Established businesses have a full year to complete the documents that Tidgren says are only available to the government.