Starting anonymous LLCs has numerous advantages, from increased privacy to tax flexibility. However, navigating the process without proper guidance can be.
As a seasoned expert in business law and LLC formation, I've compiled a comprehensive guide to help you easily navigate the process.
This guide will give you step-by-step directions on how to start your LLC while maintaining anonymity. I’ll also highlight all the necessary information you’ll need during this process.
Quick Summary
- You can set up an anonymous LLC by following the step-by-step process of forming a regular LLC, from choosing a state and hiring a registered agent to obtain an EIN and opening a bank account.Â
- An attorney may also assist with ensuring the proper structuring of your anonymous LLC to protect personal assets.Â
- States like New Mexico, Nevada, and Delaware, offer more privacy protections for anonymous LLC owners.
What Is an Anonymous LLC?
An anonymous LLC is a limited liability company that allows the owner(s) to conceal their personal information from the general public.
The proprietor(s) employ a third-party registered agent to register the anonymous LLC. The registered agents also serve as the company's public representatives or face.
What Is the Advantage of an Anonymous LLC?
There are several advantages to forming an anonymous LLC.
Here are some of the benefits you can enjoy:
1. Asset Protection
An anonymous LLC can also offer asset protection for its owners. Shielding the owners' identities can make it more difficult for creditors to pursue them for personal debts or other legal actions.
2. Enhanced Privacy
An anonymous LLC helps keep your personal information private. If you're doing business in a state where you don't have residency, forming an anonymous LLC can help keep your identity and personal information confidential.
3. Increased Security
Another benefit of an anonymous LLC is the added security it provides.
Your identity will be undisclosed. Thus, it would be difficult for hackers or malicious individuals to target your company.
4. Tax Flexibility
Anonymous LLCs also offer tax flexibility. It will allow you, as the owner, to select your business's most advantageous tax structure.
Depending on their needs, this can include choosing between pass-through or corporate taxation.
How Does Anonymous LLC Ownership Keep You Anonymous?
Anonymous LLC ownership helps keep you anonymous by shielding your personal information from public records.
So, if a person searches for your LLC on the Secretary of State's website, they will not come across any of your personal details.
These details may include:
- Your name
- Address
- Social Security Number
- Phone number
In general, here is how anonymous LLC ownership will keep you anonymous:
- Hiding your public record
- Using a nominee. It allows you to appoint a nominee to represent the ownership of the LLC on your behalf.
- Providing limited liability protection. Your personal assets are protected if the business entity is sued or incurs debts.
- Private registration. You will not file any information with the state.
How Do I Form An Anonymous LLC?
To set up an LLC anonymously, you’ll need to follow the same process as a regular LLC, although it’ll require some extra steps.
The extra steps serve the primary purpose of an anonymous LLC of keeping the owner or members' confidentiality.
Here are the steps to form an anonymous LLC:
1. Choose a State
Choose a state where you want to form your anonymous LLC. Some states offer more anonymity than others.
2. Hire a Registered Agent
You’ll need to hire a third-party LLC registered agent to represent the face of your LLC in public. You can check our guide on the best-registered agent services available.
3. File Articles of Organization
File the Articles of Organization with the Secretary of State of your chosen state. The articles will have the name and address of both the anonymous LLC and the registered agent.
4. Create an Operating Agreement
The operating agreement will outline the management structure of the LLC. It should also include provisions for keeping the identity of the members confidential.
5. Obtain an EIN
An Employer Identification Number (EIN) will be necessary for opening bank accounts and filing taxes. You can obtain an EIN from the IRS [1].
6. Open a Bank Account
Set up a bank account in the name of the LLC. Be sure to use the registered agent's address on the account.
Another step to help seal your identity is hiring an attorney to establish your anonymous company.
How Long Does It Take To Form Your Anonymous LLC?
It’ll take an average of two weeks to form your anonymous LLC. However, it might take longer if you file for a fictitious name or in case of paperwork complications.
The state must verify your provided information and ensure it meets all the requirements.
You can track your application progress online or by contacting your state's business registration office.
Is It Important To Have an Attorney Set up an Anonymous LLC?
When setting up an anonymous LLC, having an attorney assist with the process can be beneficial.
While it's not a strict necessity when setting up an anonymous LLC, an attorney may provide valuable guidance on the legal requirements [2].
The attorney will also help ensure that the LLC is properly structured to protect your personal assets.
Consulting online legal service providers or attorneys may also help maintain anonymity by being a registered agent.
FAQs
Can You Start an LLC Without a Name?
You cannot start an LLC without a name. You must first choose a name for your LLC and then file it with the state. The state will approve or reject your proposed name.
If approved, they will issue you a certificate of organization that officially establishes your LLC.
What States Allow Anonymous LLCs?
Delaware, Nevada, Wyoming, and New Mexico are the states that allow anonymous LLCs. However, you’re required to file corporate income tax.
You should, nevertheless, consult with an attorney to ensure you're following all the proper laws and regulations for anonymous LLCs.
Can I Put My Business Entity in Someone Else’s Name?
You can put your business entity in someone else's name, provided they are authorized representatives.
Secondly, ensure the company is registered in the same state where you plan to do business. Finally, have a written agreement between you and the other person stating responsibilities and how any profits or losses will be shared.
Does the IRS Know Who Owns an Anonymous LLC?
Anonymous LLC ownership has privacy laws protection, although the Internal Revenue Service may obtain ownership information under certain circumstances. These circumstances may be during an audit or investigation. However, the process can be complex and may require a court order.
How Do I Keep My LLC Address Private?
You can keep your LLC address private by forming an anonymous LLC. Maintaining your LLC address privacy is not always easy, but it’s crucial.
You can use a registered agent service that will allow you to use their address for public filings. The registered agent will be your intermediary between your LLC and the state government.
They’ll receive all official mail and notifications on behalf of your limited liability company.
A private mailbox service as your LLC's mailing address can also help keep your LLC address private. This will ensure that all mail sent to your LLC doesn’t go to your home or business.
Finally, hiring a lawyer who files all the necessary paperwork with the state may also keep your LLC's information confidential.
Which State Is the Best For Forming Anonymous LLC?
There is no "best" state for forming an anonymous LLC. Nonetheless, you can get more privacy protections from some states than others.
For example, New Mexico, Nevada, and Delaware states have laws specifically designed to protect the anonymity of limited liability company owners.
So, if you want to start your anonymous LLC, consider ZenBusiness in one of these states. However, take additional steps to protect your anonymity further.
Our #1 Recommendation
ZenBusiness
References:
- https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- https://www.ohchr.org/en/instruments-mechanisms/instruments/basic-principles-role-lawyers
