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Double LLC Strategy – Hide LLC Ownership Legally

Double LLC Strategy
(Last Updated On: November 15, 2023)

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Only Delaware, New Mexico, Wyoming, and Nevada allow you to create anonymous LLCs. But did you know it’s possible to own an LLC anonymously in other states too? The double LLC strategy allows you to create an anonymous LLC in states that don’t allow them. 

It’s possible for an anonymous LLC to own another LLC. The double LLC technique was first developed in Florida, but you can apply it in other states as well. Some states may still require a manager to sign documents, in which case you’ll have to use nominees services. 

We believe that individuals should have the option to keep their personal information private if they choose to do so. If you’re interested in learning more about what the double LLC strategy is and how it works, keep reading. 

What Is the Double LLC Strategy and How Does It Work?

The double LLC strategy entails an anonymous LLC owning a regular LLC. It’s used as a way to maintain privacy for the ultimate owners of the regular LLC. 

An anonymous LLC is a type of limited liability company that does not publicly disclose its owners. Since you can only register an anonymous LLC in certain states, this strategy allows you to own a business privately in states that don’t seem to allow it.

With a double LLC, the anonymous LLC acts as the owner of the regular LLC, while the regular LLC conducts its business activities and holds its assets. The ownership of the anonymous LLC remains private, so the ultimate owners of the regular LLC are anonymous. 

This can provide a degree of privacy for the owners of the regular LLC, as their personal information is not publicly available.

It’s important to note that this type of structure may not provide complete anonymity, as there are legal requirements for disclosing the ownership of an LLC in certain circumstances. For instance, when the LLC is involved in legal proceedings or when it’s required to file certain documents with the state. 

It’s always a good idea to seek the advice of a professional before deciding on the best business structure for your company.

How to Hide LLC Ownership in States That Don’t Allow It

Here’s a step-by-step guide on the double LLC strategy and how to use an anonymous LLC as a holding company to own a regular LLC for private business ownership:

Step 1 – Choose a State to Form Your Anonymous LLC

If your state allows anonymous LLCs, you can form your anonymous LLC there. But if that’s not the case, then you will need to choose a state that does allow for anonymous LLCs. States that permit anonymous LLCs are Delaware, New Mexico, Wyoming, and Nevada.

Step 2 – Form Your Anonymous LLC

To form your anonymous LLC, you will need to file articles of organization with the state and pay the required filing fees. You will also need to choose a registered agent. They are responsible for receiving legal documents on behalf of the LLC. You may wish to use a nominee service as your registered agent to further maintain anonymity. 

Northwest Registered Agent is the best choice when it comes to creating an anonymous LLC. It handles your information with complete privacy and files your LLC professionally. 

Use Northwest Registered Agent to File Your Anonymous LLC

Step 3 – Form Your Regular LLC

Once you form your anonymous LLC, you can then form your regular LLC. To do this, you will need to file articles of organization with the state and pay the required filing fees. You will also need to choose a registered agent for the regular LLC.

Step 4 – Have the Anonymous LLC Own the Regular LLC

Once you form both the anonymous LLC and the regular LLC, you can have the anonymous LLC own the regular LLC. To do this, the anonymous LLC will need to be listed as the owner of the regular LLC on the regular LLC’s articles of organization.

It’s important to note that this process may vary depending on the state where you are forming your LLCs. Plus, there may be additional requirements and steps involved. It helps to get professional advice in this situation.

Pros & Cons of Double LLC Strategy for Private Business Ownership

Is it a good idea to have an anonymous LLC act as a holding company for your regular LLC? 

Using an anonymous LLC to own a regular LLC can provide a degree of anonymity for the ultimate owners of the regular LLC, as the ownership of the anonymous LLC is not publicly disclosed. However, it’s important to carefully consider the potential legal and financial implications of this type of business structure.

There are a few potential drawbacks to using an anonymous LLC to own a regular LLC:

Legal complexities: Using an anonymous LLC to own a regular LLC can add an additional layer of complexity to your business structure. This might make it more difficult to manage and operate your business. You might also have trouble enforcing contracts or resolving legal disputes.

Additional costs: Setting up and maintaining an anonymous LLC can be more expensive than a regular LLC. It may require the use of a nominee service or other additional legal services.

Limited availability: Anonymous LLCs are not allowed in all states. Thus, you may need to form your anonymous LLC in a different state than your regular LLC. This can add additional complications and costs.

Limited anonymity: It’s important to note that using an anonymous LLC to own a regular LLC may not provide complete anonymity. This is because there are legal requirements for disclosing the ownership of an LLC in certain circumstances. For example, when the LLC is involved in legal proceedings or when it’s required to file certain documents with the state.

Overall, whether or not using an anonymous LLC to own a regular LLC is a good idea for your business will depend on your specific circumstances and goals. It’s always wise to seek the advice of a professional before deciding on the best business structure for your company.

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.