The Senate conducted Hearings for “Transparancy” for corporations and LLCs. This means the Government wants to know everything about small business so it can tax and control every aspect. The Representative from the DOJ said that federal legislation must include four components:
(1) law enforcement must have access to the names and contact information for those who have control over a company and the company’s assets;
(2) define “beneficial owner” the same across all 50 states and collect name, address and photo ID from ALL recognized as beneficial owner,
(3) obtain beneficial ownership information in an accurate and timely fashion which means it must be maintained on site in the state of formation, and it must be updated any time info changes and it must be certified annually, and
(4) there must be a federal enforcement component.
The purpose of this is to regulate and control every aspect of business by the government. This means setting-up a business will become more expensive and slower (like the months it takes to form a business in Europe.)