Privacy is the biggest commodity now. Keeping your information private is the biggest challenge these days. When small business owners need to keep their business details hidden from snoopy friends and family, they need to turn to anonymous LLC.
It combines the benefits of LLC (Limited Liability Company) with anonymity, hence building a firewall for additional protection.
Why is anonymity important?
First off, anonymity keeps the creditors from leveraging public information. It is evident in the past decade that general details have led to relatives demanding financial aid, spam mailing, calling, and even lawsuits filed to reap money in settlements. An easy way out of this turmoil is to create an anonymous LLC.
Who is it for?
Anyone who wishes to keep their purchases, investments, or businesses beyond the public eye can opt for privacy LLC. From landlords to celebrities, corporate employees to a court judge can have a private LLC.
How does it work?
Every business is required to submit basic information while filing documents for establishing the company. The information includes the details of the manager, directors, and partners. Some states allow businesses to use temporary staff, which denotes the nominee. In public records, it is the details of the nominee that shows up. Once the company documents are filed, the nominees resign, leaving the owners as sole operators and controllers of the company. This is possible because these states do not require the new ownership details to be updated, thus, concealing the owner’s identity.
US States for Anonymous LLC
A company needs to register itself if it wishes to do business in that state. However, it is not as straightforward to answer if a business is operating in a state or not. Therefore, it is recommended to consult a law firm to drill down to details. As a general rule of thumb, physical presence in any state is considered a business operation in that state. Some of the best states to form an anonymous type LLC are Delaware, New Mexico, Nevada, and Wyoming.
Perks of Anonymous LLC
- Keep your personal details away from public exposure
- Includes benefits of LLC- keeps personal liability at bay from attaching to business affairs
- Tax advantage with more deductions from IRS
- Flexibility to add on more partners at each business growth level
- Sustainability in case of demise or incapacitation
- Prevention from probable harassment from the disclosure of information
LLC, combined with the benefits of anonymity, is a safe and secure way to operate a business. Here, the point of consideration is that registering the company as LLC under anonymity does not make the details completely untraceable. Usually, the law firms register as the owner, or the agents register as the nominee. Simultaneously, the law firms sign the contract with the owner to keep the legal matters fair and as per the law. Overall, this strategy provides the optimum solution to abide by the rules yet keep one’s information protected.