In 2021, Congress passed the Corporate Transparency Act, under which many business entities will need to file a beneficial ownership information report with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network.

Farm entities that fall under this reporting requirement include corporations, limited liability companies, partnerships or other types of entities that are created by filing with the secretary of state or other similar office.

Additionally, this reporting requirement may apply to farms that operate through business trusts or foundations that were created by a filing with a secretary of state or other similar office. The application of the reporting requirement to these types of entities will depend on the laws that created these entities.

Entities that existed before Jan. 1 have until Jan. 1, 2025, to complete the report. Those entities created or registered after Jan. 1 have 90 days after filing and registration to complete the report. A beneficial ownership information report does not need to be filed again unless there is a need to update or correct the information that was originally reported.

The report requires the following information for each beneficial owner of the entity:

The identification number may come from a current driver’s license, passport, identification card or other identification document issued by a state, U.S. territory, local government or tribe. If none of these are available, a foreign passport can be used. In addition to the identification number, a copy of the document providing the identification number must be submitted with the report.

An individual is considered a beneficiary owner if they have substantial control over the entity or own at least 25% of the entity. This law is not intended to include those who have substantial control of an entity merely because of their position of employment by the entity. In some circumstances, children will not be considered a beneficial owner who must report.

In addition to the information about the beneficial owners, the company must provide its name and any names it is doing business as, along with its current address. For those companies formed after Jan. 1, the same identification information must be provided for those who formed the company.

The U.S. Department of the Treasury’s FinCEN website provides information on the rules and regulations for making this report.