Creating a business is typically an exciting opportunity for entrepreneurs. New business owners are also encouraged to prepare for potential complications, including protecting themselves from predatory creditors and attorneys. If this is a top priority for entrepreneurs, one option they may consider is creating an anonymous LLC. However, while not all states allow this type of incorporation, there are still ways to protect the company.
What is an Anonymous LLC?
An anonymous LLC is an LLC that shields the identity of company members or managers from being publicly available. While anonymous LLCs offer protection, it is important to note that they are not unknown in the eyes of the law. Business owners will still need to file taxes and disclose their identity to the IRS.
There are many benefits of forming an anonymous LLC. In addition to shielding the business, an anonymous LLC can help you keep business owners keep their personal and business finances separate. This is extremely helpful if a company faces financial difficulties or is sued.
Where are Anonymous LLCs Legal?
Unfortunately, anonymous LLCs are not legal in California. However, the following states do permit the creation of anonymous LLCs:
- New Mexico; and,
How is an Anonymous LLC Formed?
Business owners wishing to form an anonymous LLC will need to take several actions. First, they should find a registered agent willing to keep the business owner’s identity confidential. Second, a business owner must file the appropriate paperwork with their state. Lastly, they will need to ensure that all their business documents list the LLC as the company's owner rather than the business owner’s name.
Questions About Forming an Anonymous LLC?
Forming an anonymous LLC can be a great way to protect yourself and your business. There are options if you are a California business owner wishing to create an anonymous LLC. The dedicated team at Purdy & Bailey, LLP can outline what courses of action are available to keep your business protected. Schedule a consultation with our knowledgeable corporate lawyers so we can start working together. (858) 360-7080