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Attorney advises farmers, businesses on new federal disclosure law
An attorney says the new federal disclosure law has businesses concerned, and several attorneys and accountants confused.
Amy Ebeling with Ruder Ware Law in Wisconsin says the new federal Corporate Transparency Act has been in place since January 1st and anyone who has formed a business entity with any state government has to provide more information to the federal government. “Corporations, limited liability companies, there is a requirement to disclose to the federal government what is labeled as beneficial owners, which includes owners as well as those that may have management or other authority inside the business without having any ownership.”
Ebeling says this applies to all businesses including farms and sole proprietorships.
She says the new law also has many accountants and attorneys unsure of how to advise their clients. “With any new law, there’s lots of discretion in interpretation and we don’t have the benefit here of historical cases or rulings, or how disputes around the language have been settled, so we’re all taking reasonable positions, doing the best we can to ensure our clients are not at risk and have limited liability.”
And, she says it’s unclear what the possible enforcement actions might be. “We’re not sure how those will be enforced. Is there going to be some discretion? Are they going to be strictly enforced and everyone who doesn’t file is going to end up with a $10,000 fine? So, that is yet to be seen.”
Ebeling says existing farmers and other business operators have until the end of the year to register so don’t rush to comply in the first quarter. “Hopefully we get additional guidance as 2024 goes on here, but certainly, at the end of the second or beginning of third quarter, you need to start contacting an attorney or looking into filing yourself if you feel comfortable. Don’t wait until the end of 2024.”
Ebeling presented information about the new law to a group of dairy farmers in Madison, Wisconsin.
Ebeling says the Corporate Transparency Act is being challenged in court, but so far, there are no signs of the law being overturned.
UPDATE 3/4/24 Ebeling says, “An Alabama Judge ruled on Friday, March 1st, that the Corporate Transparency Act is unconstitutional. Right now, that simply means that the CTA cannot be enforced against the plaintiffs, which is the National Small Business Association. The government will likely quickly request that the injunction against the plaintiffs be paused and the Justice Department will also likely appeal the Alabama case to the circuit court.” Watch for additional coverage online and on the air at Brownfield Ag News.
Good afternoon Amy,
I would like to comply with the new law for my LLC company. I am the sole owner and employee. Can you help me with the simplest way to accomplish that?
Thank you for your help,
Dale Gaugert