4 ms·

A proposal to stop the purchase of property by nameless numbered entities ("123 LLC") would have my full support. It's not like foreign buyers put down "China

by rchaud 4y ago

A proposal to stop the purchase of property by nameless numbered entities ("123 LLC") would have my full support. It's not like foreign buyers put down "China Inc" on the purchase forms.

Quillbert182 4y ago
It seems to me like it might be a good idea to require citizenship to create an LLC.
- wombat_trouble 4y ago
  What would that accomplish? Most LLCs are created (incorporated) by a lawyer who then cedes control to the intended owners. Even if you had a requirement for a US person, you'd just have figureheads collecting some nominal salary. Plenty of low-income folks would be eager to get an extra $500 a month for doing nothing. For what it's worth, the formation of an LLC is a state affair, and every state has its own rules around requirements, reporting, transparency, etc. Most states keep the paperwork public; some states don't, but these are not the states where housing shortages are all that profound.
  - positr0n 4y ago
    > Plenty of low-income folks would be eager to get an extra $500 a month for doing nothing. If this hypothetical low income person owned the LLC so that others could operate it, nothing is stopping them from cleaning out the LLC's bank account whenever they want since they own it!
    - wombat_trouble 4y ago
      It doesn't work that way. An LLC is governed by an operating agreement, and that agreement can specify what actions needs approval from whom. You can have an LLC that is owned by one person and managed by another, and yet another party collects proceeds... sky's the limit, if it's not otherwise illegal, it's fair game.
- anthonypasq 4y ago
  so immigrants shouldnt be able to open restaurants? seems like a great plan...
vineyardmike 4y ago
You can just say that Chinese nationals without residency in the US can’t own land. Canada did something similar for foreigners and the legal defensibility of it seemed pretty good based on lawyers talking about it. Basically, you can say (in legalese) that X group can’t be the controller of the land. They can open trusts or LLCs or whatever… but it’s transitive so their trust can’t name them as the beneficiaries and their LLCs can’t honor them as shareholders.
AlbertCory 4y ago
The legal term is "real party in interest (RPI) " There are already laws regarding naming the RPI: [1] https://definitions.uslegal.com/r/real-party-in-interest/ https://definitions.uslegal.com/r/real-party-in-interest/ [2] https://en.wikipedia.org/wiki/Real_party_in_interest https://en.wikipedia.org/wiki/Real_party_in_interest [3] https://www.projectjurisprudence.com/2017/08/whos-real-party-in-interest.html https://www.projectjurisprudence.com/2017/08/whos-real-party...

by rchaud 4y ago

A proposal to stop the purchase of property by nameless numbered entities ("123 LLC") would have my full support. It's not like foreign buyers put down "China Inc" on the purchase forms.

Quillbert182 4y ago

It seems to me like it might be a good idea to require citizenship to create an LLC.

wombat_trouble 4y ago
What would that accomplish? Most LLCs are created (incorporated) by a lawyer who then cedes control to the intended owners. Even if you had a requirement for a US person, you'd just have figureheads collecting some nominal salary. Plenty of low-income folks would be eager to get an extra $500 a month for doing nothing. For what it's worth, the formation of an LLC is a state affair, and every state has its own rules around requirements, reporting, transparency, etc. Most states keep the paperwork public; some states don't, but these are not the states where housing shortages are all that profound.
- positr0n 4y ago
  > Plenty of low-income folks would be eager to get an extra $500 a month for doing nothing. If this hypothetical low income person owned the LLC so that others could operate it, nothing is stopping them from cleaning out the LLC's bank account whenever they want since they own it!
  - wombat_trouble 4y ago
    It doesn't work that way. An LLC is governed by an operating agreement, and that agreement can specify what actions needs approval from whom. You can have an LLC that is owned by one person and managed by another, and yet another party collects proceeds... sky's the limit, if it's not otherwise illegal, it's fair game.
anthonypasq 4y ago
so immigrants shouldnt be able to open restaurants? seems like a great plan...

vineyardmike 4y ago

You can just say that Chinese nationals without residency in the US can’t own land. Canada did something similar for foreigners and the legal defensibility of it seemed pretty good based on lawyers talking about it. Basically, you can say (in legalese) that X group can’t be the controller of the land. They can open trusts or LLCs or whatever… but it’s transitive so their trust can’t name them as the beneficiaries and their LLCs can’t honor them as shareholders.

AlbertCory 4y ago

The legal term is "real party in interest (RPI) " There are already laws regarding naming the RPI: [1] https://definitions.uslegal.com/r/real-party-in-interest/ https://definitions.uslegal.com/r/real-party-in-interest/ [2] https://en.wikipedia.org/wiki/Real_party_in_interest https://en.wikipedia.org/wiki/Real_party_in_interest [3] https://www.projectjurisprudence.com/2017/08/whos-real-party-in-interest.html https://www.projectjurisprudence.com/2017/08/whos-real-party...