Unmasking Hidden Owners: How to Identify the Secret Players Behind Companies

Download MP3

Businesses cannot hide behind anonymity anymore. There's a new law that's going to kick in about a month that requires all businesses to fully disclose who the owners are. You can't have hidden owners of a business, no matter what state you're in. Some states had very obscure reporting where you didn't have to show who owned a business. However, the Corporate Transparency Act (CTA), which was voted in a year or so ago, now requires all businesses to report who the owners are. This is going to be very important.

For businesses, it’s crucial to know this information because, as noted in the article, 90% of businesses don't even know about this requirement. Even as a consumer, it’s good to know that you can now find out who's behind a business. If you've been defrauded by a company or if a company is doing something sketchy with a contract, not performing as they should, or has basically ripped you off, you will now be able to find out who’s behind it. They can no longer hide behind the corporate veil.

This is particularly important when conducting investigations. A lot of times, the problem is finding out who the owners are. Once you identify the owner, you can proceed with asset searches and background checks on them. However, finding out the owner has now become much easier. If a company tries to hide behind just the company name, they won't be able to anymore.

Additionally, the law requires not just the owners, but also any board members, senior executive employees, attorneys, or other executive staff to be reported. There is a huge penalty for non-compliance—a $10,000 fine—and even potential jail time. If you’re a consumer or a business that has struggled to identify who’s behind a fraud or scam, this law now works in your favor. While it may still take some research to get the information, the company can no longer withhold it, and this is a significant advantage.

Unmasking Hidden Owners: How to Identify the Secret Players Behind Companies
Broadcast by