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Bill

H 501

An Act to ensure LLC transparency

194th Legislature (2025-2026) Introduced by Mike Connolly and 1 co-sponsor

Massachusetts bill H.501 increases transparency requirements for LLCs by mandating disclosure of beneficial ownership information to reduce shell company misuse.

Accompanied a study order, see H5178
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Bill Summary · H 501

Legislative bill overview

H.501 aims to increase transparency requirements for Limited Liability Companies (LLCs) operating in Massachusetts, likely by mandating disclosure of beneficial ownership information or other operational details currently not publicly available. The bill has progressed through initial legislative steps and is currently under committee review.

Why is this important

LLCs currently offer significant privacy protections that can obscure who actually owns or controls businesses, creating potential vulnerabilities for shell company schemes, money laundering, and tax evasion. Increased LLC transparency could help law enforcement, regulators, and the public identify beneficial owners while potentially making Massachusetts less attractive for illicit financial activities—though it also affects legitimate privacy-conscious businesses.

Potential points of contention

  • Business privacy vs. public accountability: Small business owners and investors may oppose mandatory disclosure requirements as an invasion of privacy, while transparency advocates argue the public has a right to know who controls entities operating in their state
  • Competitive disadvantage: Massachusetts LLC requirements that exceed federal standards or neighboring states could push business formation to more lenient jurisdictions
  • Implementation costs: Businesses would incur compliance expenses for registering beneficial ownership information, and the state would need resources to maintain and secure a potentially sensitive database

Compiled from official sources — confirm details with the bill’s official record.

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