Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Anonymous LLC Ownership

By Patrick J. O'Sullivan, Jr.
December 31, 2015

Real estate ownership by limited liability companies (LLCs) has increasingly received attention as their use, in commercial, and particularly residential, real estate has grown. LLCs are used for various reasons, such as protection against potential liabilities and privacy concerns, similar in many respects to many older ownership structures. More recently, however, local, national and international governmental entities, as well as non-profit watchdog organizations, are increasingly focused on greater real estate ownership transparency, primarily to address concerns regarding the circumvention of anti-money laundering and counter-terrorism financing measures.

Critics of LLCs in their current form have made a number of proposals to improve transparency of beneficial ownership, either requiring the filing of beneficial ownership information with government agencies or requiring stronger due diligence efforts by real estate industry participants. To date, these proposals have not gained significant traction in the United States, where state laws on company formation continue to provide anonymity to LLC beneficial owners.

In contrast, efforts to implement transparency measures have been more successful in Europe and in particular the UK, which is proceeding with the development of a public registry. Although such efforts raise concerns with respect to either privacy or the administrative burdens to be borne by the real estate industry, implementation of measures elsewhere will keep the focus on transparency efforts in the United States.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at customercare@alm.com or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.