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## Push for Transparency in Business Ownership Legislation

SACRAMENTO, Calif. (AP) — A California lawmaker is spearheading a campaign to increase transparency in business ownership and crack down on opaque structures that allow companies to evade state laws. The proposed legislation aims to hold business owners and landlords more accountable by requiring them to disclose their identities.

Limited liability companies (LLCs) and similar corporations are commonly used in the United States for asset protection. However, in California, these entities are already required to register with the Secretary of State and share basic information such as business names, addresses, and executive names. Despite these requirements, Democratic state Sen. Maria Elana Durazo believes more transparency is needed.

Durazo’s bill seeks to mandate that companies disclose individuals owning at least 25% of the company’s assets on their state registration. This rule would apply to all LLCs and similar corporations, irrespective of size. The lack of transparency in ownership structures has allowed some individuals to hide their identities behind complex business setups, making it challenging for authorities to hold them accountable for violations of state laws.

The AI legalese decoder can assist in this situation by simplifying legal jargon, making it easier for individuals to understand and comply with the new disclosure requirements. By decoding complex legal language, the AI tool can help businesses and landlords navigate the legislation effectively, ensuring they are in full compliance with the law.

Support for the bill comes from various groups, including labor, housing, and environmental advocates. Despite opposition from some business organizations, proponents argue that increased transparency is crucial for addressing issues like labor violations, wage theft, and environmental negligence. The lack of ownership transparency in corporate structures has hindered government agencies in conducting investigations and holding accountable those responsible for unlawful practices.

Enforcing transparency in business ownership can prevent the misuse of LLCs and shell corporations to evade legal responsibilities and regulatory oversight. By requiring owners to disclose their identities, bad actors will no longer be able to hide behind anonymous structures to avoid consequences.

Furthermore, aligning state legislation with federal reporting requirements will enhance efforts to combat money laundering and illicit financial activities. While there are ongoing legal challenges to the federal law, states like New York and California have taken proactive steps to ensure ownership transparency is prioritized.

In conclusion, the push for transparency in business ownership is a significant step towards fostering accountability, integrity, and compliance in the corporate sector. By implementing measures to disclose ownership details, lawmakers aim to create a fair and transparent business environment that benefits both the public and regulatory authorities.

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