LLC Overview
An LLC provides limited liability protection for its owners. LLCs allow pass-through taxation. An LLC prevents owners’ personal assets from being pursued if the company goes bankrupt or gets sued.
Ownership and management structures of an LLC can be flexible. An LLC Operating Agreement helps define internal workings like management and operations. LLCs allow various strategic moves like business expansion, tax planning, and liability protection.
Anonymous LLCs
You can set up an anonymous LLC by following the step-by-step process of forming a regular LLC. Your LLC journey to anonymity starts with choosing the right name for your company. The ability to use a nominee is the key to creating an anonymous LLC that can shield assets from creditors.
I can recommend forming your anonymous LLC in Wyoming, but there are other options like Nevada and New Mexico. The primary disadvantage of an anonymous LLC is that it won’t allow you to avoid paying taxes or protect you from lawsuits. You can keep yourself and family away from the public eye if registered as an anonymous LLC.
Anonymous LLC states don’t require owners/members or managers to provide identities. With filing services, you can set up a private LLC while anonymous.
Which States Allow Anonymous LLC Owners?
- Wyoming allows LLC owners to remain anonymous.
- Maine offers some privacy but requires LLC members and managers to be listed on public records.
Banks and insurance companies generally cannot form an LLC but may form a professional LLC (PLLC). An LLC Agreement outlines member rights and is recommended though some states don’t legally require one.
Foreign LLCs have special rules. Other business structures like corporations, partnerships, and sole proprietorships offer benefits but an LLC combines the advantages of each.
But S Corp ownership of an LLC can affect tax treatment and S Corp eligibility rules still apply.
Non-US individuals must provide LLC and member information to get an EIN. A Registered Agent receives official documents but doesn’t have to be a member or manager. Their contact details must be public records.
Reporting beneficial ownership information will be federally required starting January 1, 2024. For average single-member LLCs, passing draws through to personal returns is the simplest way to pay yourself. Recommended: Northwest for comprehensive LLC formation and tax compliance.
In the UK, an LTD offers liability protection and certain tax benefits like an LLC. An LTD is assumed private. Forming one signals reliability. Key differences between public limited companies and private limited companies relate to trading stock and reporting requirements.