Limited Liability Corporations (LLCs) are now commonplace in the American economy. In fact, they are being formed three or four to one in comparison to corporations. While these pass-through tax entities are often good for local businesses, the regulation of LLCs differs by state and this can create interesting challenges within state lines. This is currently true in Wyoming, where the loose regulation of LLCs is meant to favor incoming business, but also creates an “LLC Loophole” in the regulation of campaign finance. This dichotomy in regulation becomes ironic when you recall that Wyoming created the first LLC in 1977. [Read more…] about Wyoming’s Irony: The LLC Loophole
By: Dan Carroll
As detailed in a recent State of Elections post, a misguided 1996 New York State Board of Elections (BOE) decision treating limited liability companies (LLCs) as individual people rather than corporate entities. The decision allows LLCs to directly contribute up to $60,800 to an individual candidate for statewide office while traditional corporate entities are limited to $5,000 in aggregate contributions to all candidates in a year. LLCs need not disclose the identities of their founders, membership or officers, so their political activities are difficult to link to their funders.