If you, your farm, or your agri-business have a joint venture with a U.S.-based company, this interview is a must listen.
The Corporate Transparency Act (CTA), and specifically the beneficial ownership information (BOI) clause, came into effect at the beginning of 2024 and affected parties have until January 1, 2025 to comply or face stiff penalties or even jail time.
Adam Dunst, partner at law firm Dentons, says the CTA was developed to close loopholes in U.S. laws and combat money laundering, tax fraud and other crimes in the U.S.. Dunst says that understanding what the CTA is designed to fight helps make sense of what needs filed and why.
Essentially, every business in the U.S. or doing business in the U.S. through an owned entity will need to file identification documents with the Department of Treasury and keep the ownership identification current. A change in CEO, for example, would trigger the need to update the file, Dunst explains.
Existing companies have until the end of the year to comply, but newly formed companies in 2024 have to disclose the required information within 90 days of being formed. Any new entity formed in 2025 and onward has just 30 days to file, and any time the information changes the same 30 days applies.
Dunst adds that it’s important to not only consider how to stay in compliance with the law, but also how companies are going to gather, store, and share that sensitive information (passports, driver’s licenses, addresses, etc.)
For more information on how to file these documents, tap here.
Subscribe: Apple Podcasts | Spotify | RSS | All Podcasts
