Okay I misread that in the law review documents. So anyone acting on behalf of the beneficial owner is not reported, but the beneficial owner still is.
This is in line with some other countries that are vying for respect by reforming.
I don't mind it being on-file privately with the government, and this bill doesn't change anything with publicly perusable databases, nor create a new one.
Correct. I have seen arguments for such databases, and might support it in limited cases (e.g. for public officials). But I think, personally, beneficial ownership information should be afforded privacy similar to tax returns.
Let's say if I walked to the secretary of state in Wyoming and paid them cash to form a new entity, where is the Treasury report supposed to be done? Is there a notification somewhere?
Does the Federal Government even have a way of knowing when a new entity is created in all of the incorporated states and other semi-autonomous regions? Not all the states have free public databases.
Is this bill going to sanction the states until they give information automatically about newly formed and existing entities?
Does this apply to indigenous protectorates? Navajo nation has incorporation statutes, and literally any of other the 560+ tribes could as well.
Out of curiosity, could you explain why? What would be the risks if this information were publicly available?
It's the same reason why i would want my medical data to be private, but available to relevant gov't agencies for public health reasons.
I agree. Not only similar, but exactly the same.
Only I'm Swedish.
Company -> hires lawyer to register Company2 -> Company2 -> hires lawyer to register Company3 -> etc.
Beneficial ownership is an old legal concept. It traces through entities to natural persons. Until one gets to the controlling humans, the search keeps running. It is a powerful and costly tool.
So short answer: no, daisy chaining lawyers and entities wouldn’t hide you.
Yes, we already know who the legal owners of entities are.
Under this bill, if you pay a registered agent to form an LLC you control, your name is recorded. That is not presently done. It’s been pushed back on, particularly by the real estate industry, for decades.