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Call to End the Anonymity of Owners Shell Corporations Gains Momentum

by Norris Law Group on August 6, 2014

Call to End the Anonymity of Owners Shell Corporations Gains MomentumStates such as Wyoming, Delaware, and Nevada are well-known to be “friendly” to businesses who want to incorporate. These three states allow individuals and businesses to set up “shell corporations” and permit the owners to remain anonymous. But the rules of incorporation may be changing if new legislation goes into effect. STEP, the Society of Trust and Estate Practitioners, offered an article about this subject on its website on July 28, 2014.

A bipartisan bill known as the “Incorporation Transparency and Law Enforcement Assistance Act, or ITLEAA” has been brought to floor of the US Senate by Chuck Grassley (R-Iowa) and Carl Levin (D-Michigan). If passed, this law would require that corporations in all fifty states to “disclose their beneficial owners” upon incorporations, and also requires that this information be kept up to date at all times. Law enforcement would then be able to find this information via subpoena without the owners of the corporations knowing about it.

While this bill has been in draft form for years, its time may have come. The Obama Administration is in favor of its passage, as the White House feels it has been “embarrassed” time and time again by the fact that the tiny state of Delaware—the home state of Vice-President Joe Biden—is home to around one million corporations. The Obama Administration also backs “a separate bill allowing the Internal Revenue Service to collect information on the beneficial owner of any legal entity [organized] in any state, and allowing law enforcement to access that information.”

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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