LINCOLN—Time is running out for thousands of farmers and ranchers who may face steep fines and possible jail time for failing to file their businesses with the federal government. Jan. 1, 2025, is the deadline to file Beneficial Ownership Information (BOI) with the U.S. Department of Treasury’s new Financial Crimes Enforcement Network (FinCEN) created under the Corporate Transparency Act of 2021.
“The use of Limited Liability Companies (LLCs) and other formal organizational structures serve as important tools for numerous farms and ranches to maintain a distinction between personal and business assets. However, small businesses frequently do not have the personnel necessary to monitor and adhere to evolving rules and regulations. It is evident that a significant number of farm and ranch families are unaware of the recent filing obligations,” said Mark McHargue, Nebraska Farm Bureau president.
The Corporate Transparency Act of 2021 required businesses to register any “beneficial owner” of a company in an effort to combat money laundering. Many farms are structured as either a c-corporation, s-corporation, or limited liability company (LLC), which are now required to be registered if they employ fewer than 20 employees or receive under $5 million in cash receipts – which covers most farms.
