What is an Anonymous LLC and Where Can You Set It Up in 2024

This article discusses the definition of an anonymous LLC, forming an anonymous LLC, its benefits, and jurisdictions that allow the formation of anonymous LLCs.

Company formation is a significant part of a holistic offshore strategy. Forming a company can qualify you for several tax advantages in certain countries.

Intimidated by the idea of forming a company? You shouldn’t be. Many countries worldwide have processes in place that allow you to set up a company within a few days. Moreover, many countries enable you to appoint a power of attorney to deal with your company setup proceedings.

One of the easiest business structures to set up is a Limited Liability Company (LLC) due to a number of reasons that we’ll discuss in this article. Add in anonymity, and this business entity allows you to enjoy a sliver of privacy in this hyper-transparent world.

Do you want to run business activities without your last lunch order being in the government books? We can help you plant a business flag in a stable tax-friendly business hub where you can grow your business without having to deal with additional paperwork every second day. If that’s something you want, get in touch with us today.

What is an Anonymous LLC?

An anonymous LLC is a business entity whose owners are not publicly disclosed. Note, however, that it’s not a separate entity. It’s similar to a regular LLC, with one difference – the names and contact information of owners, shareholders, and members are kept private/undisclosed.

You can’t form an anonymous LLC anywhere. The formation of anonymous LLCs depends primarily on the jurisdiction in which you’re hoping to form the company. Anonymous LLC states or jurisdictions have the necessary regulations in place that support the formation of a company where ownership information is kept anonymous.

An anonymous LLC can also be called:

• Confidential LLC
• Secret LLC
• Private LLC

Before getting into the why and how of LLC formation, let’s briefly review the definition of a standard LLC. So that it’s easier for you to follow the rest of the article.

What is a Limited Liability Company (LLC)?

The purpose of an LLC is in its name – providing limited liability to its owners. Limited Liability Companies (LLCs) protect the personal assets of LLC owners from business debts and litigations. An LLC is hybrid in nature. It combines the protection offered by a corporation with the simplicity of a partnership or sole proprietorship.

An LLC offers ease of company formation, flexible regulations, and asset protection for LLC members and owners.

Why Form an Anonymous LLC?

Anonymous LLCs are for investors and entrepreneurs who want the flexibility and ease of an LLC but also want to keep their information private.

There could be many reasons for choosing to remain anonymous. Business owners may not like the idea of any random person accessing their business information with just a few clicks. If your information is in the public records, any interested party can access it within minutes.

The biggest reason, however, why business owners form an anonymous LLC is to avoid lawsuits. Avoiding lawsuits can be an excellent way to protect your assets from creditors.

Forming an anonymous LLC can also help you hide your sensitive information from unwanted third parties, cyber-attacks, and nosy marketing campaigns.

Since an LLC can be used to buy certain personal assets like land, vehicles, art, etc., one can form an anonymous LLC to keep the information regarding their private purchases away from public records.

How to Form an Anonymous LLC?

Setting up an anonymous LLC is mostly similar to setting up a regular LLC. The main thing you must pay attention to is choosing a jurisdiction (or state, in the case of the US) that allows anonymous LLC formation. Once you choose a jurisdiction, the next steps are pretty straightforward:

Choose a Business Name

You must select a unique business name that describes your services and makes you stand out. Your business name will be public.

Choose a Registered Agent

Many jurisdictions require you to appoint a registered agent who deals with LLC matters (especially in the beginning).

A registered agent can be a person or a legal entity. They’re tasked with receiving formal business mail and legal documents on your behalf. A registered agent acts as an additional layer of privacy for anonymous LLC owners. How? In the case of a lawsuit, the registered agent receives the legal paperwork first and passes it on to you, preventing the litigators or plaintiffs from approaching you personally.

The registered agent must typically be in the jurisdiction where you formed your business. 

Don’t want to deal with all the complexities regarding setting up an anonymous LLC? We got you covered. Our experienced team can handle company formation matters, from selecting the best jurisdiction to handling the necessary paperwork. All you need to do is reach out to us, and we’ll take care of the rest.

Article of Organization/Association

Filing the Article of Organization or Association is mandatory for an LLC setup. It contains information regarding your business name, registered agent, and other important business details.

Best US States to Form an Anonymous LLC

Surprised to read anonymity and the US in the same sentence. Don’t be. The US may be stringent on certain regulations, but a few states still allow business owners to keep their information private by forming an anonymous LLC.

The following are the four US states that permit anonymous LLCs:

• Delaware
• New Mexico
• Wyoming
• Nevada

Setting up an LLC in an anonymous LLC state is an excellent way to enjoy a degree of privacy without going offshore. It won’t do much to reduce your tax liability, but high taxes and stringent reporting per the Internal Revenue Service (IRS) standards are something you’ll always have to deal with as long as you’re a US citizen.

Let’s briefly discuss each of these states below:

• Delaware: Delaware’s Court of Chancery is streamlined and dedicated to business matters. The state has no corporate income tax requirement. However, it requires a yearly $300 franchise tax. In Delaware, you won’t be required to mention the names of directors, members, shareholders, and managers.
• New Mexico: New Mexico is the only state that doesn’t require an LLC to disclose any individual names to the state, not even ownership information. Other anonymous LLC states require disclosure of ownership information to the state. Setting up an anonymous LLC in New Mexico comes with perks such as cheap filing fees and no annual reports or fees. However, the state requires you to file corporate income taxes.
• Wyoming: Wyoming is the most tax-friendly option among all anonymous LLC US states. The state has no requirement for corporate income tax for an LLC. However, you will be required to pay for an Annual Report, the cost of which will be based on your assets within the state.
• Nevada: Nevada also allows anonymous LLC incorporation, but its fees are pretty high, and its laws are less friendlier than other states.

Wyoming and Nevada allow the “nominee service”, allowing you to replace the names of real owners with nominees (a law firm, person, legal entity, etc.) whose names then appear in public records.

You would need a third-party registered agent and an organizer in these states to ensure complete privacy since some aspects of the business may still be publicly disclosed.

Best Offshore Jurisdictions to Form an Anonymous LLC

Not afraid to venture further afield to gain the ultimate personal and financial freedom? Offshore company formation might be the best route for you.

Countries like the Bahamas, Panama, the British Virgin Islands, and many more allow you to incorporate an anonymous LLC while also offering other perks like the absence of auditing requirements, lucrative tax advantages, and ease of company formation.

Set Up an LLC Today For Privacy and Asset Protection

An anonymous LLC’s wide berth of benefits to a business owner makes it an excellent option for all investors and entrepreneurs.

Want to acquire tax advantages, anonymity, asset protection, and ease of company formation all at once? Nomad Capitalist is the only organization that can help you achieve all these at once. We create holistic, tailored strategies for our clients, covering everything from their corporate portfolio needs to personal pursuits. We advise our clients about corporate jurisdictions that are best for them.

However, our advice or Action Plan doesn’t depend upon incomplete information that you may find easily with a few clicks. Our experienced team of strategy developers, vendors, and other professionals study each jurisdiction’s personal, corporate, and tax consequences before selecting one for you.

With us, you get exclusive all-in-one support you can’t find anywhere. If you want our one-of-its-kind service, set up a call with us today.

What is an Anonymous LLC, and Where Can You Set It Up in 2024 FAQ