The Corporate Transparency Act may affect Montanans who have Business Arrangements such as LLCs, S or C Corporations or Other Entities
February 6, 2024
By Marsha Goetting
A new federal reporting requirement aimed at reducing corporate crime may affect some
Montana farmers, ranchers and businesses.
Beginning on Jan. 1, 2024, certain corporations, limited liability companies and other
entities created or registered to do business in the U.S. will be required to report
information about their beneficial owners to the Financial Crimes Enforcement Network,
or FinCEN, within the U.S. Treasury Department.
The new reporting requirement stems from the Corporate Transparency Act, passed by
Congress in 2021. It is part of the U.S. government’s efforts to make it harder to
hide ill-gotten gains through shell companies or opaque ownership structures.
A beneficial owner is an individual who has substantial control over or owns at least
25% of a company.
A company created before Jan. 1, 2024, must file an initial report with FinCEN no
later than Jan. 1, 2025. A company registered on or after Jan. 1, 2024, must file
with FinCEN within 30 days of registration. Companies will have an ongoing obligation
to file an updated report with FinCEN to disclose any changes in previously reported
information or to any beneficial owner within 30 days of the change.
Montana farmers, ranchers and businesses can file reports with FinCEN electronically.
The form to report beneficial ownership information became available until Jan. 1,
2024. Information about the form can be found at fincen.gov/boi.
FinCEN materials that provide information about the new reporting requirements:
- FinCEN has materials available on their website. https://www.fincen.gov/boi
- FinCEN Introduction https://www.fincen.gov/sites/default/files/shared/BOI_FinCEN_Brochure_508C.pdf
- FinCEN Reporting Filing Dates https://www.fincen.gov/sites/default/files/shared/BOI_Reporting_Filing_Dates-Published03.24.23_508C.pdf
- Frequently asked questions https://www.fincen.gov/sites/default/files/shared/BOI_FAQs_Q&A_09.29.23._508C.pdf
- FinCEN Small Entity Compliance Guide https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf
- FinCEN videos - https://www.fincen.gov/boi/videos
- FinCEN Extends Deadline for Companies Created or Registered in 2024 to File Beneficial
Ownership Information Reports Press Release (November 29, 2023): https://www.fincen.gov/news/news-releases/fincen-extends-deadline-companies-created-or-registered-2024-file-beneficial
Appreciation is expressed to the Business, Estates, Tax, Trusts and Real Property Section of the State Bar of Montana for this information.
Marsha Goetting
Professor and MSU Extension Family Economics Specialist