Some corporation information resources

In answering a reference question this week about the number of active corporations by state, I came across some resources and issues that I thought I would alert you about:



There is an organization, the International Association of Commercial Administrators (IACA), whose members include the Secretary of States of the 50 States. Each state has different requirements for forming a corporation and operating a corporation. (Requirements vary as to the type of corporation-- domestic (headquartered in that state), foreign (headquartered in another state but required to register in other states in which they do business), professional corporations, limited liability corporations and non-profit corporations, and to the information that needs to be provided when the corporation is formed.



The IACA has an annual report, the 2007 being available at:
http://www.iaca.org/downloads/AnnualReports/2007_IACA_AR.pdf (very large and it takes a while to open.) This report has summarizes of data from each state (assuming it was provided by the state, and unfortunately, some states did not). It includes information on new filings, and the totals of existing corporations, and other data.



When I contacted by email the head of the Business Organization Services section of the IACA, he said I could suggest ways in which the survey for the data could be constructed next year. (They total active domestic and foreign corporations, and the inquirer wanted a separate breakdown.)



What for what use might this data be used? For one, new corporation filings are considered an indicator of economic development.



I learned about the IACA as it was referenced in an recent U.S. Government Accountability Office (GAO) report: Company Formations: Minimal Ownership Information is Collected and Available. The report, GAO-06-376, was for the Permanent Subcommittee on Investigations, Committee on Homeland Security and Governmental Affairs, U.S. Senate. According to the GAO report, most states do not require ownership information at the time a company is formed. While most states require corporations and limited liability (LLC) to file annual or biennal reports, few states requrie ownership information on the reports. Some states require companies to list the names and addresses of directors, officers or managers on filings, but these persons may not own the company. Nearly all states screen company filings for required information, but none verify the identities of company officials.



According to the GAO report, federal law enforcement officials are concerned that criminals are increasingly using U.S. "shell companies" to conceal their identify and illicit activities. However, state officials and agents noted that collecting company ownership could be problematic as it could increase filing costs and the time needed to approve filings. Privacy is also a concern. Historically, owner information on company filings for private companies has not been part of the public record.