January 29, 2021 | less than a minute read

Say Goodbye to Corporate Anonymity

Taylor English

A highlight of LLCs and corporations in many jurisdictions was the anonymity. Any entity formed after December 31, 2021 must be prepared to say goodbye to this perk and file a "beneficial owners" report at formation identifying the natural persons that have an economic or control benefit. Entities that were in existence as of December 31, 2021 will have two years to comply. However, keep in mind that certain entities will be exempt from the reporting requirement.

U.S. LLCs and corporations, as well as certain non-US companies registered to do business in the U.S. (collectively, “Subject Companies”), will soon be required to make a filing with the U.S. Department of Treasury (“Treasury”) disclosing the names of, and certain personal information regarding, Subject Companies’ “beneficial owners.” This disclosure requirement represents a fundamental shift in the business entity formation regime in the United States, particularly in Delaware, the most common and favored formation jurisdiction in the U.S. by an immense margin and one which traditionally required very little member or shareholder information to form a business.

www.delawareinc.com/...