In his speech on the Senate floor to introduce S. 1483, that many states are reluctant to address this issue. Instead, they are more intent on touting the ease with which individuals can establish companies within their borders. "The states are competing against each other to attract persons who want to set up U.S. corporations, and that competition creates pressure for each individual state to favor procedures that allow quick and easy incorporations, with no questions asked," he said.

The concern of the law's supporters: While such practices may enable states to attract legitimate businesses, they also have become an invitation to criminals.