A new reporting requirement: the Corporate Transparency Act’s impact on business owners
November 4, 2022
A shell company is a company without active business operations or significant assets. Shell companies have been used for a myriad of purposes for years throughout the world. Whether used for security reasons, liability or estate planning purposes, as holding companies, or as tax havens – shell and front companies are widespread in the global economy and frequently used to shield or distance ownership identity. In many parts of the world, shell companies are legal. Their use for illegal purposes, such as tax evasion, fraud, and evasion of international sanctions, has received increased scrutiny of late.