Think again.
On December 11, 2020, the US Congress passed the Corporate Transparency Act by a veto-proof majority in both houses. The Act prohibits the formation of so-called “anonymous” companies by requiring corporations and limited liability companies to disclose their true owners (by name, date of birth, and identification number) to the Department of the Treasury. Existing companies are also required to report this information within two years.
The ability to register a company with nominee or non-disclosed owners in some US jurisdictions has long been a sore point for officials charged with anti-money laundering enforcement. Moreover, it would surprise many Americans to find that the US was one of the few developed nations where this was possible, placing it in the company of better known havens like the Cayman Islands and Switzerland.
Why do this?
Not every person seeking to form a company anonymously is engaged in human trafficking or terrorism. We are often asked for help developing strategies to protect clients’ privacy or assets for entirely lawful and reasonable purposes. For example, during the most recent election cycle, many election officials on both sides of the political spectrum found that their names, unlisted telephone numbers, and even home addresses had been disclosed online with calls for harassment and intimidation by political enemies. Others have suffered aggressive SWAT style raids on their homes called in by people whom they don’t even know in retaliation for petty online disputes.
Keeping a low profile, both online and in real life, is both legal and advisable. While the Corporate Transparency Act makes that a little more difficult in the United States, it is still possible to protect one’s privacy and assets with planning and forethought. Our business consulting services can help, please contact us for a consultation.