Saturday, August 13, 2011

I've just found out that illegal immigrants can organize an LLC. What can it be done to prevent this?

I called to the Department of Financial Institution in my state and asked for an explanation - they are in charge of filing LLCs , Corporations, etc- Well, they said that anyone can organize an LLC and start a business, even if they are here illegaly. They said this happens because for doing so it is not required to show proof of legal status in the U.S. Very interesting... americans worry about illegal employees but what about the system that allows them to become owners of businesses and be EMPLOYERS? These people are running restaurants and home services companies and the IRS provides them with an ITIN to file taxes. The ITIN is an alternative to the SSN which of course they don't have. Illegal Immigrants who own an LLC can easily fill out form SS-4 to obtain an employer # just by proving their ITIN. Again, no need to have a valid SSN to become an employer. Don't worry about those who are working in the fields, worry about those who own business and, of course, make more money.

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