Anonymous LLC: Where You Can File & How to Start One

What is an anonymous LLC?

An anonymous LLC, also called a private LLC or confidential LLC, is a limited liability company that allows you to keep the identities of its owners off public records. This also often extends to LLC members and managers. It functions much like a regular LLC, but you won’t list individuals’ names or sensitive information in the articles of organization.

Forming an anonymous LLC lets you avoid public exposure by using nominee services or third-party representatives to file formation documents on your behalf. However, anonymous LLCs are not available in all states, and the rules vary depending on where you file.

Who would want to remain anonymous?

Forming an anonymous LLC is especially useful in situations where privacy is important:

• Home-based businesses: If you run an LLC from your home, like an ecommerce or consulting business, you might want to keep your information private.
• Public figures or celebrities: Well-known individuals often want to protect investments and other business matters from public scrutiny.
• Employees starting a side hustle: If you’re still employed when you start a new LLC, you might want to keep business activities private from your employer.

Are anonymous LLCs really anonymous?

Anonymous LLCs keep your name off state records, but they aren’t completely anonymous. While your name may not appear on state business filings, you may file a Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN). And if someone files a lawsuit or needs to conduct a legal investigation, anonymous LLC owners’ information may still be accessible through subpoenas or other legal methods.

What are the benefits of creating an LLC without a name? 

The main benefit of forming an anonymous LLC is privacy, but this can mean different things depending on your needs. Below are the key scenarios where LLC owners might want privacy.

Protect business transactions

An anonymous LLC allows you to shield your personal identity during financial transactions, which can be especially helpful if you’re purchasing real estate or another business. For example, if you’re buying property, the seller won’t know your identity, which can prevent situations where they inflate the price because they believe you have more resources than the average buyer. For business acquisitions, anonymity might keep the stock price stable during negotiations by preventing rumors about the LLC members or owners behind the purchase.

Reduce harassment

Forming an anonymous LLC can make it harder for people with bad intentions to find and target you, which can help reduce unwanted attention. For example, lottery winners, owners of well-known brands, celebrities, and public figures often use anonymous LLCs to protect themselves from scams, junk investment offers, and even personal attacks. While it doesn’t make harassment impossible, it creates an extra layer of protection for LLC members that can discourage certain behaviors.

Help avoid lawsuits

An anonymous LLC can make it harder for someone to connect your name to a business, which may discourage lawsuits or other legal actions. For example, if someone slips and falls at a property owned by your business entity, it’s more difficult for them to tie the property back to you personally. While this can act as a deterrent, it’s not a guarantee. A determined individual or organization can still find ways to pursue legal action if they’re motivated enough. However, the added layer of privacy can help discourage frivolous lawsuits.

Which states allow anonymous LLCs?

Only a few states permit anonymous LLCs, and each has its own rules for how they handle privacy. These states are:

• Delaware—Nominee services keep owner information private, and Delaware’s business-friendly laws make it a top choice.
• Wyoming—Known for strong privacy protections and no state income tax, Wyoming doesn’t require LLC members or managers to appear in public filings.
• New Mexico—Offers low filing fees, minimal reporting requirements, and no public disclosure of ownership information.
• Nevada—Provides nominee services and privacy protections but charges higher fees than other states.

Can you file for an anonymous LLC outside your home state?

Yes, you can file an anonymous LLC in a different state, but it’s not always the best idea. That’s because if your business is physically located in your home state, but you form an anonymous LLC in one of the states above, you’ll need to register as a foreign entity in your home state. For example, if you run a physical business in Colorado but file your anonymous LLC in New Mexico, you’ll still need to register the LLC in Colorado as a foreign entity.

For many small business owners, this extra step isn’t worth the cost or hassle. Plus, you may need to pay taxes and file an annual report in both states. However, if you live in an anonymous LLC state, you’re legitimately doing business in both states, your business has a national or online presence, or privacy is a top priority, it might be worth the extra effort.

How to start an anonymous LLC

While the process for creating an anonymous LLC is similar to forming a regular LLC, there are a few extra steps and considerations.

1. Choose your state

Choosing the right state to form your anonymous LLC is the first step. Think about how your business operates and consider factors like ongoing fees, state tax obligations, business law, and the strength of privacy protections before making your choice. 

For example, New Mexico doesn’t require an annual report, while Wyoming offers the added benefit of no state income tax. On the other hand, Delaware, beyond being an anonymous LLC state, is known for its business-friendly legal environment, making it a top choice for larger or more complex businesses.

2. Find the perfect business name

The next step is to select and register a business name. Your name must be unique and cannot already be in use by another company in the state. Most states also require that the name includes "LLC," "L.L.C.," or "Limited Liability Company" to indicate the business structure. Check the business naming requirements in the state where you want to register.

Next, perform a business name search on the state’s registry or another online tool to confirm that your chosen name is available. The state will reject your formation paperwork if the name conflicts with an existing business. If you plan to operate in multiple states, confirm your name is available in each state.

3. Appoint a registered agent

In most states, every LLC, including anonymous ones, must designate a registered agent. A registered agent is a person or company responsible for receiving legal documents, tax notices, and official correspondence on behalf of your business entity. The registered agent must have a physical address in the state where your LLC is formed, which cannot be a P.O. box.

For LLC owners, using a professional registered agent service can also help maintain privacy. These services use their own address in public filings, keeping your personal information off the record. 

4. File formation paperwork

Next, you’ll file the formation paperwork with the Secretary of State where you want to register to legally create your LLC. Depending on the state, this document may be called articles of organization, certificate of organization, or certificate of formation. 

In states that permit anonymous LLCs, the formation paperwork typically doesn’t require you to list ownership information. You should still double-check it to avoid delays due to mistakes. It’s smart to consult an attorney or use an LLC formation service such as LegalZoom to make sure your documents are accurate.

5. Obtain an EIN (employer identification number)

After your LLC is officially formed, you’ll need to apply for an employer identification number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique number assigned to your business for tax purposes, similar to a Social Security number for individuals. It’s required if you plan to hire employees, open a business bank account, or file federal tax returns.

Applying is free and can be done directly through the IRS website or using an EIN filing service. Although the application requires personal information, such as your Social Security number, this information is not publicly accessible. 

Each anonymous LLC state has both advantages and disadvantages. Consider the following factors when deciding where to file your LLC.

• Filing costs and fees: States like New Mexico and Wyoming have lower filing fees, while Nevada tends to be more expensive.
• Tax implications: Wyoming has no state income tax, which can be beneficial for certain businesses.
• Nominee services: If you want to keep your name off public records, Delaware, Wyoming, and Nevada offer nominee services.
• Business location: If your business operates entirely online, it may make sense to file in a state like Wyoming or New Mexico. For physical businesses, sticking to your home state might save you money.

Can LegalZoom help create an anonymous LLC?

Yes, LegalZoom can help you set up an anonymous LLC in any state where they’re allowed. Our process is simple and straightforward, similar to filing for a regular LLC. LegalZoom also offers other solutions for small business owners, like business licensing, registered agent services, BOIR filing, and more. Get started with LLC formation and then grow your business with confidence with LegalZoom.

FAQs

Can I hide my name from my limited liability company?

Yes, in Delaware, Wyoming, New Mexico, and Nevada, business owners can form LLCs (also called a private LLC or confidential LLC) without putting individuals’ names on public records. Keep in mind, however, that your name will still be disclosed to the IRS and financial institutions that require this information. You can also set up a trust or a holding company and then list it as the LLC owner.

What are the disadvantages of an anonymous LLC?

An anonymous LLC often costs more to set up and maintain than a regular LLC, as you may need to pay for nominee services and work with an attorney. Additionally, forming an anonymous LLC in a state where you don’t operate may require registering as a foreign LLC in your home state, which can increase your costs and paperwork. Finally, while anonymous LLCs protect your privacy from public records, they don’t offer complete anonymity in legal or financial matters.

Can I form an anonymous LLC in New York?

New York isn’t an anonymous LLC state. Forming an anonymous LLC there is difficult due to the state’s strict transparency laws. New York requires businesses to disclose ownership information on public filings and has enacted laws aimed at increasing accountability. If privacy is your priority, you may want to file in a state like Delaware or Wyoming instead.