New Delaware policy requires screening of LLCs

(AP) — Delaware’s secretary of state is implementing a new requirement to ensure the state’s 1.3 million business entities are regularly screened against a federal database of terrorists, international drug traffickers and other criminals.

The News Journal reported Monday that it learned of the move to rein in secretive limited liability companies through an open records request. The revised procedure, expected to be put in writing soon, will require all commercial agents representing more than 50 business entities to conduct quarterly checks, comparing their lists of clients against a federal sanctions list.

For smaller registered agents, the Delaware State Department will handle the checks.

Delaware is one of the easiest states in which to set up a company. According to the newspaper, it leads the nation in the number of registered companies without physical homes in the state.

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