If you want to form a business while protecting your privacy, an anonymous LLC is one solution. While the state of Texas does not allow for the formation of anonymous LLCs, other states do. If you know the process, you can then bring that anonymous business to Texas.
What Is an Anonymous LLC?
An anonymous LLC is defined as a limited liability company whose owners are not publicly identifiable by the state. Keep in mind that “anonymous LLC” is not a legal term for an entity; it refers instead to a regular LLC that is registered in a manner that keeps the LLC’s owners out of the public record. It may also be known as a confidential, or private, LLC.
Although business owners do not have to identify themselves to the state or public in anonymous LLCs, they still have to pay taxes and maintain bank accounts, and anonymous LLCs can still be sued.
Are you ready to protect your privacy and keep your name, address, and phone number off the public record in association with your business? Call the LLC formation attorneys at Hendershot Cowart P.C. at (713) 909-7323 or contact us online.
What Are the Pros and Cons of an Anonymous LLC?
Registering as an anonymous LLC protects your right to privacy. With an anonymous LLC, your identity and address will not be publicly available, and you can fully separate your business from your personal life.
Anonymous LLCs are popular among public figures or public servants concerned about stalking and harassment, as well as owners of controversial businesses. Victims of abuse can also use anonymous LLCs to prevent their abusers from looking up their information.
People who wish to hide their financial situation from other employers, aggressive creditors, neighbors, and family members may also benefit from an anonymous LLC.
In addition to privacy, confidentiality, and harassment prevention, anonymous LLCs offer flexibility because partners can join companies at different stages.
Of course, registering as an anonymous LLC does not guarantee complete anonymity. You will still need to disclose your identity to your bank and the Internal Revenue Service (IRS), and if you get sued, you may have to reveal your identity through a subpoena.
Additionally, you may have trouble getting a commercial lease, and you will likely have to put your name on some contracts (such as a commercial lease). To further protect your privacy, engage a contract attorney to negotiate a confidentiality clause or non-disclosure provision for your agreements to require the person or entity entering the agreement with you to protect your identity.
How Do You Set Up Your Anonymous LLC in Texas?
Anonymous LLCs are not available in all states. At the time of writing, Delaware, Nevada, New Mexico, and Wyoming are the only states that allow anonymous LLCs.
However, there is a process to accomplish your privacy goals in Texas. If done correctly, your name, address, phone number, and email address will not show up on record in association with your anonymous business.
Which Are the Best States for an Anonymous LLC?
Delaware and New Mexico are the most popular states for registering anonymous LLCs. Delaware has a streamlined court dedicated to business matters and offers personal liability protections that other states do not. Also, there is no corporate income tax requirement in Delaware.
New Mexico does not require an LLC to disclose any individual names to the state and offers affordable filing fees without annual reports, fees, or taxes.
In both Delaware and New Mexico, you will need an attorney, accountant, or service provider to serve as the third-party registered agent and organizer to maintain total privacy. Once you do so, however, you can form a new LLC in Texas and name your Delaware or New Mexico LLC as the owner of your Texas LLC.
Why Use an Anonymous LLC Attorney?
In addition to setting up and registering your LLC here in Texas and in an anonymous-LLC state like New Mexico, an attorney can also serve as the registered agent for your Texas LLC. A registered agent is an individual or entity required in Texas to accept tax and legal documents on behalf on the business. Our lawyers can also help you develop confidentiality clauses for commercial leases and other contracts that require identifying information. Further, our law firm can help you maintain your privacy if your anonymous LLC is ever sued.
Finally, if your anonymity is ever compromised in violation of a nondisclosure or confidentiality agreement, the business litigation attorneys at Hendershot Cowart P.C. can help you recover damages and help set things right again.
Savvy entrepreneurs, investors, and business owners always have an attorney they can call. If you are forming an anonymous LLC and looking for legal counsel, contact the business formation attorney look no further than Hendershot Cowart P.C. We help Texas business owners through complex legal hurdles and have more than 100 collective years of quality legal representation. We want to be your law firm for life.
Let us exceed your expectations. Call us at (713) 909-7323 or contact us online to get started today.