Says Shell Companies Often Unreachable When Problems Arise
Legislation sponsored by Senator Sam Thompson that would lift the veil of anonymity from limited liability companies owning residential property passed the Senate Community and Urban Affairs Committee today.
Sen. Thompson’s bill to require LLCs recording deeds for residential properties to identify all individual owners was approved by committee. (©iStock)
The bill (S241) would require LLCs to disclose the names and business addresses of all members, managers and authorized agents of the company when recording deeds for homes with as many as four dwelling units.
“Shell corporations are coming into neighborhoods. If there are any problems, people can’t find anybody to talk to get issues resolved,” said Thompson (R-12). “It’s frustrating when neighbors don’t know who to turn to for help. Making the names of responsible parties available eliminates the obstacle.”
The legislation would also help municipalities that sometimes struggle with shell corporations in enforcing local codes.
Any LLC recording a deed would be required under the bill to provide an affidavit identifying all responsible individuals. If a business entity is part of the LLC, the bill calls for disclosure of the people with ultimate ownership of the business.
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