A federal law passed in 2021 has gone into effect, creating new requirements for farmers who operate as a corporation, LLC, or limited partnership. The Corporate Transparency Act will require those who fall into those categories to file a beneficial ownership information (BOI) report.

Farmers who operated under one of these designations prior to 2024 will have until January 1, 2025, to file their first report with the federal government. New corporations, LLCs and limited partnerships will have 90 days to file after they are created.

The BOI report will include information on all beneficial owners, which is defined as anyone with at least 25% ownership or “substantial control” over the business. The Transparency Act is related to the Anti-Money Laundering Act of 2020. It was created to help prevent financial crimes and is not limited to the agriculture industry.

Read more on the federal law, including when and how to file a BOI.