What Is an Anonymous LLC? – A Complete Guide 2024

Last Updated on September 24, 2024 by Dr. Gabriel O’Neill, Esq.

An Anonymous LLC is a type of limited liability company that allows its owners to remain anonymous while protecting their assets. These LLCs can be formed in states like Wyoming, Delaware, Nevada, and New Mexico, where anonymity is permitted.

This structure offers owners privacy and limited liability protection as a standard LLC. Anonymous LLCs are gaining popularity among entrepreneurs who wish to keep their personal information confidential.

Additionally, anonymous LLCs maintain privacy by using a registered agent to provide the business’s physical address and serve as the main contact for the LLC. A reliable registered agent, like Northwest Registered Agent, understands the importance of privacy. You can register your anonymous LLC with them for just $39.

What Is an Anonymous LLC – Definition

An anonymous LLC is a Limited Liability Company (LLC) organized without the owners’ names being disclosed in public records. This type of LLC is often used for financial privacy, asset protection, and anonymity. Anonymous LLC owners aren’t listed publicly, creating a layer of protection. 

How Does an Anonymous LLC Protect Your Privacy?

An anonymous LLC is formed to protect the privacy of its owners. In this type of LLC, the owner is not required to disclose their name, address, or other personal information to the public. Instead, the LLC is formed with the help of a registered agent service, and all communications are done through that registered agent. 

The registered agent may also be listed as the point of contact for the LLC in public records, which can help protect the privacy of the actual owners. Additionally, anonymous LLCs may defend the owners’ assets from creditors and shield them from potential legal liability. 

This allows the owner to remain anonymous and protects their privacy while complying with all applicable laws. Moreover, an anonymous LLC shields investments from public view and preserves family privacy.

Now, you can register your business anonymously with Northwest Registered Agent for only $39.

Pros and Cons of an Anonymous LLC

While having an anonymous LLC offers certain advantages, there are also potential disadvantages. This section will explore the pros and cons of an anonymous LLC to help you decide if it’s the right choice for your business.

Pros

• Anonymity: An anonymous LLC allows owners to hide their identity, meaning their personal information is not made public. This can help protect the business owner’s assets and reduce identity theft risk. 
• Limited liability: An anonymous LLC provides the same limited liability protection as a regular LLC, meaning the owner’s assets are protected from the business’s liabilities.
• Tax benefits: An anonymous LLC can help reduce tax liability as the owner’s income is not considered when filing taxes.
• Flexibility: An anonymous LLC can be structured in various ways, allowing the owner to customize the business to suit their needs.
• Professionalism: An anonymous LLC can give potential customers and partners the impression that the business is well-established and professional.

Cons

• Limited liability: While an anonymous LLC provides a degree of protection from personal liability, it’s not absolute. If an individual’s actions are negligent, the LLC’s limited liability protection could be weakened.
• Complexity: Setting up and maintaining an anonymous LLC can be complex and costly. The company must comply with state and federal laws and regulations, which can be difficult and time-consuming.
• Tax implications: Anonymous LLCs are still subject to taxation, just like any other business. The LLC may have to pay income or franchise taxes depending on the state. In addition, the owners may be subject to personal taxation as well.
• Difficulty dissolving: An anonymous LLC may be difficult to dissolve, as the members may have to go through extra steps to dissolve it. 
• Limited transferability of interests: An anonymous LLC does not allow a member to transfer their interest in the company to another party, as the other party would not be able to know who the original members were (unless approval is obtained in advance).

Cost of Forming an Anonymous LLC

The first step in forming an anonymous LLC is to select a service provider. A service provider is responsible for filing the necessary documents in the appropriate state and will provide ongoing support and maintenance. 

However, the cost of forming an anonymous LLC will depend on factors like the registration state, the services hired, and the complexity of the business structure. Generally, the cost of forming an anonymous LLC can range anywhere from a few hundred to a few thousand dollars. 

Additionally, there will likely be a need to pay for an attorney to help with the paperwork and other formalities associated with forming an anonymous LLC. In addition to the initial cost of constructing an anonymous LLC, ongoing costs are also to consider. 

These costs will include the cost of maintaining the LLC, such as filing annual reports and paying for taxes, and the cost of any additional services that may be needed. 

A general breakdown of the cost of working with a service provider will vary based on the services they offer and the complexity of the anonymous LLC structure. In addition to the service provider fees, filing fees are also associated with forming an anonymous LLC. 

These fees will vary based on the state you are starting in but typically range from $50 to $500 for the initial filing.

Read our article on how much it costs to start a business to know more.

Are you looking for a good registered agent? Register your anonymous LLC for just $39 with Northwest Registered Agent.

Best States for Anonymous LLC

The best states to start a business, like anonymous LLCs, tend to be those that have fewer filing requirements and offer more privacy protections. Delaware, Nevada, Wyoming, and New Mexico are often cited as the top states for anonymous LLCs, as they offer lower filing fees, less paperwork, and greater anonymity protections. 

Delaware, in particular, is known as the “corporate haven” due to its favorable business laws and is highly regarded for its comprehensive privacy protections. 

In Delaware, anonymous LLCs are not required to list the names of their owners on the public record. Also, this state does not require LLCs to file annual reports or financial statements, making it easier for owners to keep their information hidden. 

Furthermore, Delaware has a modern and comprehensive LLC statute that provides strong asset protection for owners. 

Wyoming and New Mexico are excellent options for those looking for more privacy and asset protection. Wyoming does not require LLCs to file annual reports and allows anonymous LLCs to use a registered agent to receive legal documents and notices. 

New Mexico also offers strong privacy protections, including an option to appoint a privacy manager to further protect the LLC owners’ identities. 

Delaware, Nevada, Wyoming, and New Mexico are the best states for anonymous LLCs, as they provide strong privacy protections, lower filing fees, and fewer filing requirements. A business owner interested in forming an anonymous LLC should consider these states, as they offer the most favorable privacy protections for LLC owners.

Why Is Delaware the Best Choice for Starting an Anonymous LLC?

Delaware is the top choice for forming an anonymous LLC due to its robust privacy laws. It’s one of the few states where owners can form LLCs without disclosing their personal information in public records, ensuring both privacy and anonymity for business owners.

Delaware’s corporate laws are another major advantage. The state is well-known for its business-friendly regulations, making it a popular destination for companies of all sizes, including many large, successful corporations.

Additionally, Delaware’s tax benefits make it an ideal place to start an anonymous LLC. The state boasts some of the lowest corporate tax rates in the U.S., along with various tax incentives like credits, exemptions, and breaks for investors, making it a cost-effective option for businesses looking to save on taxes.

For those prioritizing privacy, we recommend using Northwest Registered Agent to start your anonymous LLC. Their services are available for just $39.

To learn more about starting an anonymous LLC, read our articles on the best business bank accounts for anonymous LLCs and learn how to write a winning business plan.