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Last Updated on September 27, 2024 by Dr. Gabriel O’Neill, Esq.
If you’re an entrepreneur who values privacy, starting an anonymous LLC might be the ideal choice. There are many reasons you might want to remain anonymous, such as keeping your personal details separate from your business or preventing your information from appearing on public records.
Whatever your reasons, forming an anonymous LLC can help protect your privacy and keep your business affairs discreet. Here’s a guide on everything you need to know to get started.
For a hassle-free experience, consider hiring a Northwest Registered Agent to file your anonymous LLC. They ensure your personal information stays completely confidential, giving you peace of mind about your privacy.
A Step-By-Step Guide on How to Start an Anonymous LLC
- Find a state to file your anonymous LLC
- Create a business name
- Search for a registered agent
- Get all important documents
- File the documents with your chosen state’s authorities
Listed below are the five important steps that will help you start an LLC anonymously. We recommend you get a professional and confidential business registration service like Northwest Registered Agent to make sure your Anonymous LLC gets filed the right way.
This will also ensure no personal data gets leaked during the registration process.
Step 1: Find a State to File Your Anonymous LLC
Not all US states allow the formation of anonymous LLCs. Only Delaware, New Mexico, Nevada, and Wyoming allow you to register a business anonymously.
When you register a business within these states, you don’t have to mention the identities of the members, owners, or managers to the government.
Step 2: Create a Business Name
The next step is to come up with a business name in order to start your anonymous LLC journey. Certain states, such as Delaware, have specific requirements when creating a business name. Make sure the name is different and unique, and it should contain the LLC term. Also, LLC owners can’t use terms that don’t relate to their type of business.
Step 3: Search for a Registered Agent
Finding the right registered agent is the key when you want to start an LLC anonymously. They are responsible for signing documents on your behalf and transferring all communications and information to your LLC, which helps in maintaining your anonymity.
If you’re looking for a good registered agent that can protect your privacy, then Northwest Registered Agent has you covered. It’s the leading business registration service for taking care of your business’s privacy.
Northwest Registered Agent follows a Privacy by Default practice that ensures your business and personal data remain private. Their chief standards of privacy include:
- Limiting private data that’s saved by state agencies
- Limiting private information on public documents
- Never selling any information
- Keeping all data safe from theft or loss
- Limiting access to any information
- Limiting the use of third parties
- Limiting data requests
- Testing and tracking for any vulnerabilities
If you’re ready to register your anonymous LLC, visit Northwest Registered Agent to register your business for just $39.
Step 4: Get All Important Documents
You need to prepare and gather all of the relevant documents in order to start an anonymous LLC. For example, in Delaware, you are required to file all documentation and paperwork with the state, and you should have the Certificate of Formation of your LLC ready.
Visit the official website of your chosen state that permits the formation of anonymous LLCs and take a look at all of the documents that you will need.
Step 5: File the Documents With Your Chosen State’s Authorities
Take all of your important documents and file them with your chosen state’s authorities. Each state that allows business owners to start an anonymous LLC has its filing fee:
- New Mexico: $50
- Nevada: $75
- Delaware: $90
- Wyoming: $100
What Is an Anonymous LLC?
So, what exactly is an anonymous LLC? An LLC that’s anonymous tends to be different as compared to other business entities. This is because it doesn’t identify the ownership information once it’s registered, meaning important data cannot be found on the public records.
This includes information like the names of the owners, their contact, the name of the business, and so on. When you start an LLC anonymously, no one will be able to track down your company or find information regarding its ownership.
Pros and Cons of an Anonymous LLC
There are several benefits to starting your business as an anonymous LLC, but there are some drawbacks to it as well.
Pros
- Protects your privacy: Business owners can keep all of their sensitive information safe from prying eyes
- Confidentiality: Your business assets, property investments, and LLC information remain hidden
- Prevents lawsuits: You stay safe from potential lawsuits
- Reduced harassment risk: All business affairs remain out of the public eye
- Keeps your assets safe: Your business assets remain shielded from all types of threats, like creditors
- Get similar benefits of a regular LLC: This includes tax advantages, limited liability protection, operating flexibility, and so on
Cons
- The IRS and other related institutions: You aren’t anonymous for the IRS, incorporating services, financial institutions, and other related entities
- Taxes: You still have to pay taxes, similar to a regular LLC
- Lawsuits: There are certain lawsuits that anonymous LLCs can get subjected to resulting in revealing the owners’ identities
- Third parties at risk: All partners or clients working with anonymous LLCs are at risk of lawsuits too, including registered agents
- You need a Federal Employer Identification Number (FEIN): This number is required to create a business bank account and to submit your application to the IRS
How to Start an Anonymous LLC – FAQ
1. How to form an anonymous LLC in states that don’t allow it?
It’s possible to start an anonymous LLC in states that don’t allow it. However, there are some extra steps you would have to take to make that possible.
First, you need to create a single-member LLC in one of the states that allow anonymous businesses and another one where your home state is. You will need help from a business attorney or a registered agent, so they can assist you with compliance and form an operating agreement.
The registered agent you hire will enter their physical address when registering your LLC. Thus, if anyone wants to know about the owner, they will be led to another LLC.
If you’re looking for a registered agent, go to Northwest Registered Agent to get a great deal for just $39.
2. Can you form an anonymous LLC without a business name?
No. You need a business name for your LLC and get it approved by the state.
3. Can I put my business in a different person’s name?
Yes, but you need to consider a few factors:
- That person should be an authorized representative of your company who is permitted to make business-related decisions
- Your company should be registered in the US state where you want to do business
- You need a written agreement between you and the second person stating all terms and conditions
4. Can the IRS find out who owns an anonymous LLC?
Yes, the IRS is able to find out about the ownership of an anonymous LLC through legal processes, but they won’t necessarily release this information.
5. Can I make my LLC address private?
There are several ways to make your LLC address private:
- Set up a private mailbox service or a post office box. This will make sure all mail related to your LLC is sent directly to you, instead of your business’s location or your home
- Hire an attorney who will take care of all documentation filing tasks with the state without disclosing your LLC’s information
- Use a good registered agent service. It will receive all the official notifications and mail in place of your LLC. Plus, it will act as the middleman between the state government and your LLC
6. How much does it cost to maintain an anonymous LLC?
The annual fee for maintaining an anonymous LLC varies in all four states. So, how much does it cost to maintain an anonymous LLC? In Nevada, it’s around $350. In Delaware, the annual fee is $300, while in Wyoming it’s a minimum of $60. There’s no annual fee in New Mexico.
How to Start an Anonymous LLC – Conclusion
It’s important to note that while forming an anonymous LLC keeps your personal information out of public records, it doesn’t apply to government or financial institutions like the IRS, banks, or similar entities. Additionally, even with an anonymous LLC, you’re still obligated to pay taxes.
You can form an anonymous LLC in states such as New Mexico, Nevada, Wyoming, and Delaware. However, it’s also possible to maintain anonymity in other states by working with an attorney or hiring a reputable registered agent to assist with the process.
If you’re looking for a reliable registered agent, Northwest Registered Agent offers excellent privacy protection for just $39, ensuring your personal and business details remain secure.
For more information about starting a business, read our articles on the best business bank accounts for LLCs and how you can finance your small business.
About the author
Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.