The Corporate Transparency Law was passed in 2021 and is now in full effect. National Ag Law Center Senior Staff Attorney Elizabeth Rumley explains that businesses must now report Beneficial Ownership Information to the Financial Crimes Enforcement Network or FinCEN. “Although there is a fairly long list of exclusions, there is no exclusion for agriculture, there’s no exclusion for small businesses,” said Rumley. The definition of beneficial owner is broad and includes those who own or control at least 25 percent of the company and those who exercise substantial control, including the president, CEO, general counsel, and board of directors members. Fines for non-compliance can add up quickly. “They’re looking at up to $500 for each day not in compliance with a maximum of $10,000 fine, and/or up to two years imprisonment.” Companies created before January 1st, 2024 have until the end of the year to comply. Newly created companies have just 90 days. In 2025, that window shrinks to 30 days.
