Setting up an anonymous company in the US is easy, with little paperwork and even fewer questions. These shell companies do no real business, but are often used for corrupt and criminal purposes; purposes that hurt small businesses in a number of ways. Now, Congressional lawmakers from both sides of the aisle are working together to put a stop to anonymous shell companies.
Main Street Alliance business leaders join the bipartisan call to end anonymous shell companies.
Today, Main Street Alliance leaders sent a letter to the Senate and House urging them to support newly introduced legislation to end the corrupt practices associated with anonymous companies and support a healthier environment for small business.
By requiring transparency in beneficial ownership, the Corporate Transparency Act and TITLE Act ensure that small businesses are protected. The bills pave the way to less fraud, tax evasion, contract cronyism, and criminal activity, which helps put small business owners on a more level playing field. Moreover, by creating a safer, more transparent economy, small businesses will benefit from a more stable economic climate.
For more about how anonymous shell companies hurt small businesses, please read this post from Main Street Alliance.