Bill > H501

This bill enhances transparency requirements for limited liability companies (LLCs) in Massachusetts by establishing comprehensive rules for disclosing beneficial ownership. The legislation defines a "beneficial owner" as someone who holds a membership interest, exercises substantial control over an LLC, or has been assigned a membership interest, with specific exemptions for certain individuals like minor children, employees, and creditors. LLCs and foreign LLCs will now be required to disclose detailed information about their beneficial owners when filing their certificate of organization, including each owner's name, date of birth, address, unique identifying number (like a passport or driver's license), and taxpayer identification number. Companies must update their filings within 30 days if there are changes to beneficial ownership, and they can satisfy these requirements by submitting federal beneficial ownership information. The bill also mandates that LLCs identify the total number of properties each beneficial owner owns in Massachusetts and their locations. All disclosed information will become a matter of public record, with specific disclosure requirements applying to entities where a beneficial owner holds or controls 25% or more of the equity, particularly when ownership is exercised through complex structures like trusts. This legislation aims to increase corporate transparency and make it easier to identify the true owners of LLCs.

Business and Industry

https://malegislature.gov/Bills/194/H501