LLC or Limited Liability Company has gained an immense reputation as an amazing foundation for protecting assets. Whether one is investing in real estate or any other high-cost asset, LLCs can form an excellent entity for asset protection. Such entities can be made stronger by maintaining an anonymous LLC. The anonymity of LLCs plays a key role in lawsuit prevention and also keeps thieves at bay.
What is an anonymous LLC?
It is referred to as a limited liability company where the owners are not publicly identified by the state. An anonymous LLC is always created carefully keeping in mind where it is formulated and how it is done. Modern-day technology is making business information be searched easily on the internet. Business owners want an entity that can secure their enterprises from prying eyes.
When an LLC is formed, the ownership information is avoided from public disclosure in the state where the LLC is registered. This is done by the company acting as the organizer and registered agents for the new limited liability company in selected states. Furthermore, such a status is also confirmed to provide confidentiality and attorney-client privilege.
How does it function?
After the creation of an anonymous holding company or business, one can begin an anonymous LLC in any state. It can be done by listing the holding company as the owner. There are no records linked to the LLC. In addition, there is no information of the individual to the anonymous holding company as well. Henceforth, the ownership interest of the individual in the LLC remains private as well.
Benefits of forming an anonymous LLC?
Like a regular LLC, an anonymous limited liability company offers all the benefits. The only difference is that an anonymous LLC doesn’t disclose ownership information on the internet. Some of the benefits are:
- Conducting business deals under the pretext of anonymous LLC provides confidentiality among the participants
- Ownership information is never disclosed publicly anywhere
- Couture operation agreement is customized to ensure maximum asset protection with the minimal exposure
- The anonymity in limited liability company entities prevents the businesses owners and the partners involved from getting harassed unnecessarily related to the business activities
- The attorney-client privilege limits disclosure of assets and other information in legal settings.
- An LLC offers tax benefits in sole partnerships, enabling IRS for more tax deductions
- With LLC, there is more flexibility permitting businesses to incorporate partners at different levels
Traditional LLC doesn’t guarantee privacy
Presuming that any LLC formed maintains anonymity. One has to consciously invest in an anonymous limited liability company to enjoy privacy and non-disclosure of public ownership. Traditional LLCs might have information recorded somewhere. In case, such a scenario arises, there is nothing to worry about. There are ways to increase the anonymity of such LLCs.
There are numerous advantages of forming a limited liability company, the primary being offering absolute privacy in business and personal information of the owners and the partners involved. But it might not the best concept for some businesses. Thus, it is a good decision if the professional advice of an anonymous LLC attorney is taken into account seriously.