GAO Report on LLCs

The GAO today issued a report on what it calls "shell" companies.  Shell companies are primarily LLCs that take full advantage of the anonymity allowed by state codes.  Several states allow "front" nominees in their official filings.  Moreover, since state officials never check on the names submitted in registration of any individuals named as officers (or directors, if a corporation), some firms simply submit fake names.  The GAO is concerned that shell companies are used for tax cheating and money laundering.  The three states named as homes for LLCs that engage in questionable conduct are Delaware, Oregon, and Nevada.