Nevada has recently passed a statute that now requires a corporation and/or an LLC to maintain at its registered office the following:
1. A current list of its owners, or
2. A statement indicating where such a list is maintained.
The entity must also turn over this information to Secretary of State within 3 business days if the entity is subject to a criminal investigation or answer any interrogatories submitted.
The penalty for non-compliance is suspension or revocation of the charter.
This law went into effect on October 1, 2007.
It is clear that Nevada did not want to enact this statute, but was under severe pressure from Congress because of numerous complaints from law enforcement officials that people were being victimized by swindlers who hid behind "anonymous" companies in Nevada.
Although criminals form companies everywhere, Nevada took the brunt of the criticism. It seems that this legislation is bound to create more business for Wyoming, that has no such statute. That is not to say that all of the criminals will now operate out of Nevada, but the further erosion of the privacy long touted by Nevada has caused some to simply look elsewhere.
Thursday, October 25, 2007
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