Corporate Accountability

Expose & Suspend Shell Companies Hiding Political Spending

Problem

Right now, corporations can spend millions on politics or lobbying without revealing their officers, directors, or major stockholders. If they conceal their governance records, voters never know who’s really pulling the strings behind every campaign or ad buy.

How It Works

  1. Certification Requirement: Any corporation (C-Corp, LLC, S-Corp, etc.) that spends on politics or lobbies must certify, under penalty of law, that it has filed an accurate annual report with the state showing all officers and directors.
  2. Board Activity: They must prove they held at least one bona fide board meeting in the past year (with minutes). Shell entities without real operations will fail this test.
  3. Spending Ledger: Each quarter, they submit a “political spending ledger” listing every donation over $10K and naming which board member approved it.
  4. Enforcement: If a corporation willfully conceals its governance or gives false filings, the state can immediately suspend or revoke that company’s charter—meaning no more spending, no more lobbying, and no more business in‐state.

Why It Matters

  • Shell LLCs and front companies lose their legal cover: if they can’t show board minutes or a legitimate mission, they get dissolved.
  • When a corporation hides behind an affiliate chain, the Attorney General can subpoena records, expose the parent company, and shut them down.
  • Real local businesses won’t fear this change, because legitimate companies already maintain proper governance records. It only bites at secret‐purpose shells.
  • Corporations can no longer secretly buy elections or favorable legislation.

How You Can Help

  • Volunteer with good‐government groups to audit suspicious LLCs on the Secretary of State’s site—spot the ones with no true local address or no annual filing.
  • After the bill passes in your state: share “success stories” when a shady LLC gets its charter revoked for hiding its funders; celebrating these wins on social media deters copycats.
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