If I own 100% of a real estate holding company (LLC) and then having that LLC be a 50% owner of an investment company, can my ownership in the investment company be traced back to me?

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If I own 100% of a real estate holding company (LLC) and then having that LLC be a 50% owner of an investment company, can my ownership in the investment company be traced back to me?

Asked on July 11, 2015 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, it can be traced back to you exactly the way you decribe: someone finds out that InvestCo is 50% owned by HoldingLLC; then they investigage HoldingLLC and find the ownership. This requires a bit of detective work, but unless one of the companies is established in a jurisdiction where ownership is not listed or reported and which is not subject to U.S. legal process, someone who is determined enough can trace back to you. This is a reason why some companies are set up in jurisdications like the Cayman Islands.


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