Establishing an anonymous limited liability company (LLC) can safeguard your privacy while operating a business but understanding the process may seem challenging. Before you register your company, it’s important to understand what an anonymous LLC is, its advantages and disadvantages, the top locations for filing, and the steps to take to get started.
What is an anonymous LLC?
An anonymous LLC is a type of business that works like a regular LLC, but it has one important difference: the names of its owners (members and managers) are not made public in state records.
Forming an anonymous LLC allows you to keep your ownership information private. Instead of listing your name on public filings, you can use a registered agent or service provider to handle the necessary paperwork on your behalf. Unlike standard LLCs, which disclose ownership details in public records, anonymous LLCs preserve confidentiality while still offering key advantages such as limited liability protection, tax benefits, and operational flexibility.
With an anonymous LLC, you enjoy the same legal protections as a standard LLC, including limited liability and possible tax benefits. However, there are some key points to keep in mind:
- Government access to ownership information: Even if the members and managers are anonymous to the public, their information is still known to certain government agencies and law enforcement. For instance, tax returns submitted to the IRS and other tax authorities must include the names of the owners.
- Beneficial ownership reporting requirements: If the LLC needs to file a Beneficial Ownership Information (BOI) report, the owners' names will appear on that report too. Starting in March 2025, domestic U.S. companies will voluntarily file the BOI report, while foreign companies will still need to report their ownership information within 30 days of publication.
- Disclosure through legal proceedings: If someone takes legal action or conducts an investigation, the information about anonymous LLC owners may still be revealed through legal processes like subpoenas.
Finally, anonymous LLCs must follow all required state rules, such as appointing a Registered Agent and paying required annual fees or filing reports specific to their state.
Which states allow anonymous LLCs?
Currently, only four states permit the formation of anonymous LLCs: Delaware, Nevada, New Mexico, and Wyoming.
Each state has different privacy laws. These laws can have pros and cons that might affect your decision. Additionally, operating in multiple states requires foreign qualification, which may expose member information and increase costs and compliance requirements.
Delaware
Delaware is a popular place to form an LLC because its business laws are friendly to business. Additionally, business owners can choose to keep their identities private by forming an anonymous LLC.
Delaware anonymous LLC requirements:
- The state filing fee to create an anonymous LLC in Delaware is $110.
- Unlike some other states, Delaware does not require LLCs to file an annual report or an annual franchise tax report.
- Delaware LLCs are required to pay an annual tax of $300.
- A state business license is necessary for LLCs that own property or have a physical location in Delaware, employ workers in the state, or generate sales within the state.
Nevada
Nevada is known for being friendly to businesses because of its low taxes and strong laws to protect assets.
Nevada anonymous LLC requirements:
- Nevada requires LLCs to file an Initial/Annual List, which includes the name of at least one manager or owner.
- If the owner's name is on the filing, it will be public.
- The Initial List is due when you form your LLC and costs $150.
- The Annual List is due on the last day of the month when your LLC was formed and also costs $150.
Nevada does not charge personal or corporate income tax, and there is no franchise tax on LLCs. However, if your business makes over $4 million in gross revenue, you will need to pay a commerce tax.
Keep in mind:
- Nevada requires a state business license, which costs $200 and must be renewed every year.
- You might have to meet additional business license requirements at the county and city levels.
To create an anonymous LLC in Nevada, the total filing fee is $425. This includes:
- $75 for Articles of Organization
- $150 for the Initial List
- $200 for the state business license.
New Mexico
New Mexico is one of the most cost-effective states for forming an anonymous LLC.
New Mexico anonymous LLC requirements:
- A one-time filing fee for domestic LLCs is just $50, and there are no annual reporting requirements.
- Additionally, New Mexico does not impose a corporate income tax or franchise tax on LLCs, unless the LLC elects to be taxed as an S corporation or C corporation by the IRS.
Wyoming
Wyoming is a strong choice for protecting your assets because it does not charge a franchise tax or state corporate tax. However, Wyoming requires an annual report and fee.
Wyoming anonymous LLC requirements:
- If your LLC has $300,000 or less in assets located in Wyoming, you only pay a flat fee of $60.
- If you have more than $300,000 in assets, you will pay a fee based on a percentage of those assets.
- Annual reports are due on the first day of the month when you originally filed your LLC.
- The fee to form an anonymous LLC in Wyoming is $100.
How to create an anonymous LLC
To create an anonymous LLC, follow the steps to create a standard LLC. One difference is that you will need to choose a formation state that permits anonymous LLCs. Also, you should not act as the registered agent for the anonymous LLC, as this registered agent’s name and address will appear in public records.
Step 1: Choose an anonymous LLC state
Anonymous LLCs can currently be formed in Delaware, Nevada, New Mexico, and Wyoming. When selecting one of these states, it's important to consider factors beyond privacy, such as the associated fees, liability protection, management flexibility, tax incentives, and the court system.
If you form your business in a different state but operate in your home state, you will need to manage state filings, fees, and compliance responsibilities in both locations.
Step 2: Select a name
Every state has its own regulations regarding the naming of your LLC. A key requirement is that the name must end with a state-approved term or abbreviation indicating the business is a limited liability company, such as “Limited Liability Company” or “LLC.”
Step 3: Appoint a registered agent
A registered agent, also called an agent for service of process, gets important legal notices and tax documents for a business registered with the state. The registered agent must have a physical address in the state and be available during regular business hours. If you want your business to remain private, use a professional registered agent or a legal expert, since registered agent information can show up in public records.
Step 4: File formation documents
To formally establish your anonymous LLC, submit the LLC formation documents to the Secretary of State’s office or the appropriate department that handles business filings in your state of formation. This document is typically known as the Articles of Organization.
In addition, consider drafting an operating agreement for your LLC, although not mandatory, having one is essential as it outlines the rules and structure of your business. See LLC operating agreements for more information.
Step 5: Obtain EIN, sales tax ID, and licenses
After you set up your business, apply to the IRS for an Employer Identification Number (EIN). Your LLC will use this number for its bank accounts and for tax filings.
You might also need to get licenses, permits, and registrations. The requirements can vary by state, local area, and the type of business you have.
Step 6: Open a business bank account
Opening a business bank account is a smart step for any business. For an LLC, it is crucial to keep business and personal finances separate. This separation is a key factor courts consider when deciding whether to hold an owner responsible for the LLC's debts, also known as piercing an LLC’s veil.
However, if you have an anonymous LLC, you might find it hard to open a bank account since public records don't show you as a member or manager.
Be ready to prove your ownership by using other methods. For example, prepare an LLC operating agreement that names you as a member or manager. You should also list yourself as a responsible party when applying for an EIN and have a banking resolution that outlines each member’s roles and responsibilities regarding the bank account.
Frequently asked questions about anonymous LLCs
One of the main advantages of an anonymous LLC is the protection it offers for the owners' privacy. Your name and personal information are not included in public business databases, making it difficult for others to connect you to your company. This privacy is particularly beneficial for real estate investors, high-profile professionals, or business owners who value discretion.
Can you form an anonymous LLC outside your home state?
If your business operates in multiple states, you must register your LLC in each of those states. This process might lessen your privacy because many states require you to share details about your members and managers in these filings, even if your home state (Wyoming) does not. Registering in other states also comes with extra costs, filing steps, and compliance rules, such as needing a registered agent in each state. It’s a good idea to talk to a lawyer to understand how running your business in different states will impact your privacy and compliance duties.
Can an anonymous LLC be sued?
An anonymous LLC can keep its owners' names off the public registry. However, it can still face legal scrutiny. If someone files a lawsuit against the LLC, a court may order the LLC to reveal the identities of its members. Additionally, banks often need personal information to follow federal laws like the USA PATRIOT Act and anti-money laundering rules.
