R-CALF Voices Opposition To Corporate Transparency Act

The Corporate Transparency Act went into effect in January, with the intent to identify shell companies that are engaged in money laundering or terrorism-type activities.  However, the legislation will have an impact on farm county, especially on farmers and ranchers.

“Congress passed the Corporate Transparency Act that will require all small businesses, including farms and ranches 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 operation," said R-CALF USA CEO Bill Bullard.

According to the U.S. Chamber of Commerce, 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.

“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 gap from being subjected to these rules.”

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

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