The Corporate Transparency Act: A New Reporting Requirement Affects Many Agricultural Businesses

When considering the sources of risk in agriculture, many producers recognize institutional risk as a risk that is growing in impact and importance. Institutional risk pertains to people outside the business causing change that affects the business. It includes government rules, regulations, and policies. The Corporate Transparency Act (CTA), enacted in 2021, is one example of a recent change that affects many agricultural producers. Under CTA, companies doing business in the United States are required to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The reporting requirement took effect on January 1, 2024. Companies created or registered in 2024 must report within 90 calendar days after receiving actual or public notice of creation. Companies created or registered prior to January 1, 2024, have until January 1, 2025, to report. Companies created or registered on or after January 1, 2025, have to report BOI to the FinCEN within 30 calendar days of formation.