Recent federal legislation places an end to secret shell corporations that are frequently used when high-end real estate is bought.
Limited Liability Corporations (LLCs) were mostly used before this year to fund real estate purchases and encourage owners to block their identities from the media and potentially even law enforcement.
Domestic and international LLCs doing business in the United States would be mandated by the new legislation to reveal who is the actual, natural individual (or beneficial owner) who owns and manages a company at the point of inception, as well as to amend the details if the business exchange hands. The records would be kept in a government archive that is open to banks and law enforcement authorities but otherwise unavailable to the general public.
In the event of an injury such as a slip-and-fall, LLCs, also referred to as shell firms, have legal corporate functions that include minimizing owner responsibility. Businesses also use LLCs for tax purposes and combine subsidiaries under a single name.
To read more, please visit https://www.miamiherald.com/news/business/article248472845.html.
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