The Corporate Transparency Act - AgEconMT

A new federal reporting requirement aimed at reducing corporate crime may affect some Montana farmers, ranchers and businesses.

Beginning on Jan. 1, 2024, certain corporations, limited liability companies and other entities created or registered to do business in the U.S. will be required to report information about their beneficial owners to the Financial Crimes Enforcement Network, or FinCEN, within the U.S. Treasury Department.

The new reporting requirement stems from the Corporate Transparency Act, passed by Congress in 2021. It is part of the U.S. government’s efforts to make it harder to hide ill-gotten gains through shell companies or opaque ownership structures.

A beneficial owner is an individual who has substantial control over or owns at least 25% of a company.

A company created before Jan. 1, 2024, must file an initial report with FinCEN no later than Jan. 1, 2025. A company registered on or after Jan. 1, 2024, must file with FinCEN within 30 days of registration. Companies will have an ongoing obligation to file an updated report with FinCEN to disclose any changes in previously reported information or to any beneficial owner within 30 days of the change.

Montana farmers, ranchers and businesses can file reports with FinCEN electronically. The form to report beneficial ownership information became available until Jan. 1, 2024. Information about the form can be found at fincen.gov/boi.

FinCEN materials that provide information about the new reporting requirements: