Federal legislation affecting business entities

There is federal legislation pending affecting disclosing information about state business entities such as LLCs and partnerships. S. 569 (Levin, D-MI) is entitled the "Incorporation Transparency and Law Enforcement Assistance Act of 2009." This Act is supposed to combat money laundering, tax evasion, and terrorist financing. It requires states to maintain beneficial ownership information and make it available to law enforcement. Other requirements include making lawyers "formation agents" if they are involved in forming a corporation, limited liability company, partnership, trust or other legal entity. This bill is in the Senate Homeland Security Committee where it has had two hearings. If it passes out of this Committee, it will still have to be sent to the Senate Banking Committee. Thanks to the American Bar Association Government Affairs Office for alerting us to this bill.