Limited liability corporations operating in D.C. will now need to report new details about their ownership structures to city officials after a law passed more than a year ago finally takes effect.
D.C.’s Department of Consumer and Regulatory Affairs will begin collecting names and addresses of any individual with at least 10% of an ownership stake in an LLC, or who controls the financial or day-to-day operations of the company. Now, anyone looking to form an LLC in the District will need to report those ownership details up front. Existing entities will need to include the disclosures in the biennial reports they file with DCRA.
The change dates back to 2018 legislation crafted by Councilwoman Elissa Silverman, I-At Large, who was hoping to expose negligent landlords hiding their identities behind a web of LLCs. Her initial bill targeted companies handling real estate, but the council broadened the legislation to include all LLCs, which drew rebukes from some in the business community.
The…
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