Update on Thursday, Dec. 5: The Corporate Transparency Act (CTA) has been put on hold in a far-reaching order that prohibits the federal government from enforcing it anywhere in the country.
As a result of the ruling, no business will be required to file Beneficial Owner Information. However, there will likely be further litigation, so the decision could be overturned at a higher level.
EARLIER: Texas County business owners have a tax form deadline to meet.
In 2020, Congress passed the Corporate Transparency Act (CTA) which requires non-exempt companies to report information about their companies and their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) starting in 2024.
In 2024, millions of small businesses, including LLCs, corporations and limited partnerships are required to file beneficial ownership information (BOI) reports. Entities created before 2024 have until Jan. 1, 2025, to field their first BOI report. Entities created in 2024 and later will have 90 days from creation to file their first reports. Once a report is filed, if the reporting company has beneficial ownership changes, it must file a new report within 30 days.
“Many small farms and businesses are set up as an entity that requires a BOI to be filed. Entities required to file a BOI were created by filing a document with the secretary of state or any similar office under the law of a state or Indian Tribe. Generally, LLCs, SMLLC, Limited Partnerships, S Corporations, C Corporations must file.
A sole proprietorship might have to file if it’s a corporation or LLC. General Partnerships do not have to file. Trusts usually won’t submit a BOI, unless they filed with secretary of state, but the trustees or beneficiaries might have to file if they are beneficial owners of other reporting entities.” said Rachel Hopkins, ag business field specialist.
