The Corporate Transparency Act Affects Farmers

The Corporate Transparency Act went into effect in January of 2024 with the intent to identify shell companies that are engaged in money laundering or terrorism-type activities. However, it can have adverse effects, especially on farmers and ranchers. R-CALF United Stock Growers of America CEO, Bill Bullard explains.

“Congress passed the corporate Transparency Act that will require all small businesses, including farms and ranchers, that generate less than $5 million in revenues and have fewer than 20 employees, they're required to essentially report to the government the beneficial owners of their operations,

according to the US Chamber of Commerce website, a beneficial owner is an individual that, directly or indirectly has a significant ownership stake in a company.”

R-CALF USA believes that demanding personal information is a violation of the Constitution.

“So we have joined in a lawsuit that was filed last week in Utah, alleging that the corporate Transparency Act violates the US Constitution, and we're seeking an injunction to protect all of our members, independent farmers, and ranchers that belong to our camp, from being subjected to these rules.”

Also, according to the US Chamber.com website, though no annual reporting requirement has been set, there are requirements to update the original filing upon company changes.