LLC or Limited Liability Company is a US-based business structure that safeguards people from being held responsible for their liabilities or debts. The LLC is permitted in all 50 states of the United States. What makes LLC famous is its low-cost, flexible nature and easy maintenance process. The rules of LLC differ from one state to another. To form an anonymous LLC or regular LLC, all the states have to recognize the following:
¾ Registered organizer and agent of LLC application
¾ Members or managers of LLC
Since in all states where LLC is practiced, all the private and personal information need not be disclosed, anonymous LLC has been formed. Given below are the differences that exist between regular and anonymous LLC.
What is an anonymous LLC?
Although no legal discrepancies exist between regular and anonymous LLC, the latter does not require one to disclose about the members of LLC, unlike the former. To form an anonymous LLC, one does not have to reveal anything about the LLC ownership. Sometimes, the anonymous LLC is also referred to as the confidential or private LLC.
Which states have anonymous LLC?
To form an anonymous LLC, one has to make sure that it has to be made in a state where one does not have to reveal the LLC managers or agents. Of all, there are three most popular states where anonymous LLC is prevalent. They are as follows:
- New Mexico
In Delaware and Wyoming, one does not have to fall prey to corporate income tax. However, an added disadvantage of anonymous LLC in these two locations is although the LLC ownership is not published, it has to be revealed to the state.
Compared to Delaware and Wyoming, utmost privacy is what characterizes the anonymous LLC in New Mexico. In addition, in New Mexico, LLC ownership and the annual reporting fees are not required. However, a disadvantage of anonymous LLC in New Mexico is it involves a corporate income tax.
How can lawyers help?
For forming an anonymous LLC, the lawyers can help one in these three ways:
- Maintain client confidentiality
- Ensure things are rightly done and discuss with the client
- Provide the attorney-client privilege
Delusions about anonymous LLC
There exist some misconceptions about anonymous LLC that needs to be clear at once. Given below are the false ideas that people have about anonymous LLC:
- Anonymous LLC allows one to avoid tax.
- None can trace anonymous LLC.
- Anonymous LLC is suspicious
All the three statements mentioned above are false. First of all, anonymous LLC has some tax advantages to the business owners, but they are not devoid of tax. Second, it is true that most people will not find out who the owner of the company is. But, if checked improperly, it is possible to seep through. Third, there is nothing suspicious or shady about the anonymous LLC. Clients choose to form an anonymous LLC as they do not want to disclose private information.
Although there is not much difference between a regular and an anonymous LLC, one can go with the latter if one wants to keep everything a secret.