If you are looking to protect your identity when forming a limited liability company (LLC), an Anonymous LLC is the way to go. An Anonymous LLC gives you the freedom to own and manage a LLC without your name and address entering the public record.
An Anonymous LLC anonymizes its ownership by being what is known as a manager-managed LLC as opposed to the more common member-managed LLC. With a member-managed LLC, all all the members/owners are involved in the running of the firm. With a manager-managed LLC, only designated members or certain outsiders, or some combination of both, are involved in running the business, the rest of the members being passive investors. Of the differences between the two, the most salient is that the manager-managed LLC does not have to reveal the names and addresses of its owners, unlike a member-managed LLC.
The majority of states have member-managed LLCs as the default form of an LLC. So, you need to check your state’s laws to see what the default form is and then choose a manager-managed LLC to anonymise ownership.
Any state can manage an Anonymous LLC, but some states are better than others. Delaware and Nevada are the best states for a manager-managed LLC as they do not require the LLC to reveal the names and addresses of its owners. to be specific.
U.S. citizens should establish an Anonymous LLC where they conduct the bulk of their business. This is so that you avoid paying taxes in your home state as well as in the state where your business is incorporated. This can be especially onerous when you have to get licences and permits.
Non-U.S. citizens are better off in states such as Delaware and Nevada because they automatically grant the right of anonymity and there are no restrictions in terms of where you can operate.
To start an anonymous LLC, you need to hire an attorney who will guide you through the process.
You also need a business name which your LLC will operate under.
Finally, you need a physical address. It is better, for purposes of anonymity, to not use an address related to you.
Though an Anonymous LLC will disguise ownership of the LLC, this does not imply that you will be able to avoid paying taxes. Indeed, ownership information will be available to your bank and the Internal Revenue Service (IRS).
An Anonymous LLC can still be taken to court, even if nobody knows who the owners are. Indeed, a good lawyer can still subpoena the Anonymous LLC for the names of its owners.
An Anonymous LLC is an ideal legal LLC for various businesses. For example, a landlord weary about having tenants contact them, would find an Anonymous LLC very useful. This is especially true if that landlord employs a property manager.
People with a high profile may want to do business anonymously to preserve their privacy.
In many instances, victims of abuse use Anonymous LLCs to shield them from their abusers.
Also, a business leader may want to segregate their professional life from their personal life through an Anonymous LLC.