Key Takeaways:

  • An anonymous LLC helps business owners keep their identities private by using a third-party registered agent.
  • Certain states such as New Mexico, Wyoming, and Nevada offer stronger anonymity protections for LLC owners.
  • Privacy benefits include protection from lawsuits, reduced risk of harassment, and shielding personal information from public databases.
  • Legal and tax considerations vary by state, and anonymous LLCs may face scrutiny for potential misuse.
  • Anonymity measures include using nominee managers, blind trusts, and virtual office addresses.
  • State-specific regulations differ, with states like Arizona and Delaware offering varying levels of confidentiality.
  • Forming an anonymous LLC involves choosing the right jurisdiction, selecting a registered agent, and structuring ownership to maintain privacy.
  • Hiring an attorney ensures compliance with regulations and maximizes privacy protections.

An anonymous LLC uses a third party to register a business entity in order to protect the identity of the business owners. 

Can Business Owners Stay Anonymous?

As a business owner, you may want to keep your interest in a business anonymous. Staying away from lawsuits is just one possible reason. You may have heard about a business owner friend who was sued in the past, and you know that you can protect yourself from a similar situation by hiding your ownership interests.  

Many internet services offer incorporation within a certain state to provide asset protection. For example, New Mexico, Wyoming, and Nevada are seen as states where privacy is strictly protected. You don't need to provide the identities of corporation shareholders, nor do you need to disclose members of a managed LLC. These individuals only need to be mentioned on the annual reports and the initial Articles of Incorporation. In these states and a few others, shareholders cannot be attacked by creditors (either LLC or corporate creditors). 

Anonymous LLCs are limited liability companies where the LLC member names are not available publicly. Identities are protected by the state the LLC is registered in. Anonymous LLCs can be created by registering the business in a state where anonymous LLCs are allowed. The business is registered by a registered agent who is a third party. 

Privacy is becoming more crucial thanks to an uptick in mobile and web applications. Anyone with an internet connection can access detailed records of corporate filings in most states; these records are instantaneous and either low-cost or free. Anyone can access the identities of managers and owners as well as other information about these private and public companies. You read that correctly: private companies, whether they be S corporations, C corporations, LLCs, or other entities, can be exposed to this kind of record tracking. 

This is an obvious issue for anyone who does not want their name to be open to the public as a business owner. Harassment, stalking, and other issues can be prevented in part by forming an anonymous LLC and keeping personal details from being made available to the public. 

States That Allow Anonymous LLCs

Several states offer the ability to form an anonymous LLC, allowing owners to keep their names off public records. Some of the most popular states for anonymous LLCs include:

  • New Mexico: Does not require LLC members or managers to be disclosed in public filings.
  • Wyoming: Offers strong privacy protections with no public disclosure of ownership.
  • Nevada: Maintains confidentiality by allowing nominee managers to be listed instead of actual owners.
  • Delaware: While not fully anonymous, Delaware LLCs can use a registered agent to shield ownership details.
  • Arizona: Offers private LLC options but requires some disclosure in certain circumstances.

When choosing a state, business owners should consider both privacy protections and tax advantages, as these can vary widely between jurisdictions.

Burying Your Identity in Your LLC

Creating an LLC is a matter of filing your Articles of Organization with the State you're operating in. These become public records. To remove your name from the company, take the following steps:

  •  Set up a series of companies. This is the most typical way of protecting your privacy. The company you legally own would own your LLC, making it harder for people to trace ownership of the LLC to your name.
  • Create a blind trust, naming yourself as the beneficiary. This alternative strategy would keep your name out of public records, but there are still links that can be traced to your name.
  • Set up business documents with a business address, such as a low-cost mailbox. This is beneficial because it removes your home address from public business filing records.
  • Address payment records somehow. This is important because your name will be on these even if it isn't on the documents for your LLC filing. Although these would likely take a court order to get, they are fairly condemning if all of the payments are going to you or a single individual. 

Keep in mind that wanting to be an anonymous owner of a company can raise some questions about business activities. It certainly invites people to take a second look at the business' activities and structure to see if the business is involved in questionable acts. 

Legal and Tax Considerations for Anonymous LLCs

While anonymous LLCs provide significant privacy benefits, there are legal and tax factors to consider:

  • Compliance with State Laws: Each state has different regulations regarding LLC reporting and disclosure. Some states may require additional documentation over time.
  • Tax Obligations: Anonymous LLCs are still subject to federal and state tax requirements. Owners must ensure they file tax returns appropriately to avoid penalties.
  • Misuse Concerns: Due to the potential for fraudulent activities, certain jurisdictions may scrutinize anonymous LLCs more closely. Ensuring compliance with anti-money laundering laws is essential.
  • Banking Challenges: Some financial institutions require transparency for opening business bank accounts. Providing a legal representative or using a nominee manager may be necessary to navigate these requirements.

For those forming an anonymous LLC, consulting a legal professional can help maintain privacy while ensuring adherence to all regulations.

Anonymous LLC in New Mexico

Of the states that allow anonymous LLC arrangements, New Mexico is perhaps the most extreme option. In the case of a completely anonymous LLC, the state cannot be held responsible for disclosing any records of ownership, because they do not maintain these records. New Mexico's laws only require that the names of the registered agent and organizer of the business be present on the Articles of Organization. It's not required that either of these be the owner or business manager. 

Make sure to consult a legitimate law firm or attorney to create your anonymous LLC in New Mexico. When you hire an internet legal company, you don't have the same guarantees that you're working with a bona fide, fully informed legal attorney. 

How to Form an Anonymous LLC

Forming an anonymous LLC requires careful planning to maintain privacy. Here are the key steps:

  1. Choose a Privacy-Friendly State – Select a state that allows anonymous LLCs, such as New Mexico, Wyoming, or Nevada.
  2. Hire a Registered Agent – A third-party registered agent acts as an intermediary, keeping your personal details off public records.
  3. Use a Nominee Manager or Officer – Instead of listing yourself, appoint a nominee who is legally permitted to represent the LLC.
  4. Set Up a Business Address – Avoid using your home address. Instead, opt for a virtual office or PO box to maintain confidentiality.
  5. Ensure Proper Documentation – File the necessary documents with the state, ensuring that ownership details remain protected.
  6. Open a Business Bank Account Carefully – Some banks may require disclosure of ownership; working with a business attorney can help navigate this process.
  7. Comply with Ongoing Reporting Requirements – Even in privacy-friendly states, some annual reports may be required. Ensure compliance to avoid fines or dissolution.

Anonymous LLCs provide a valuable layer of protection for business owners who prioritize privacy, but they should be structured carefully to remain legally sound.

Frequently Asked Questions

  1. What is the main benefit of an anonymous LLC?
    Anonymous LLCs help protect business owners' personal identities from public records, reducing risks of lawsuits, harassment, and privacy breaches.
  2. Which states allow anonymous LLCs?
    New Mexico, Wyoming, and Nevada offer the strongest anonymity protections, while Delaware and Arizona provide some level of privacy through registered agents.
  3. Can I open a business bank account with an anonymous LLC?
    Yes, but some banks may require the disclosure of beneficial owners due to anti-money laundering regulations. Using a nominee manager can help maintain privacy.
  4. Are anonymous LLCs legal in all states?
    While anonymous LLCs are legal in specific states, others require owner information to be disclosed in public filings. Always check state laws before forming an LLC.
  5. Do anonymous LLCs have tax advantages?
    Anonymity does not provide tax benefits. Anonymous LLCs must comply with federal and state tax laws like any other business entity.

If you need help with forming an anonymous LLC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.