If you’re in Colorado looking to form an Anonymous LLC in a state with low tax costs, look to the lesser-known state of Wyoming.
Wyoming is one of the most tax-friendly states for Anonymous LLCs, with no corporate income tax and annual fees as low as $50. These LLCs are also sought after due to the strict privacy laws that surround them.
As a business owner, you have a constitutional right to maintain your privacy and conduct your business affairs outside public view. And every day, business owners (large and small) face the risk of being sued.
Whether you wish to hide your financial situation from neighbors, family or aggressive creditors, forming an Anonymous LLC in Wyoming can help you conduct business without the extra stress.
What is an Anonymous LLC?
An Anonymous LLC is a limited liability company the business owners or members are not required to publicly disclose their identity with the state where the LLC has been formed. An Anonymous LLC is created by being careful where and how an LLC is formed.
Obtaining an Anonymous LLC can only be achieved in four states: Wyoming, Delaware, New Mexico, and Nevada. In all other states, the name of the LLC members and managers will be made available to the public.
How an Anonymous LLC Works
One of the most frequently asked questions related to forming an Anonymous LLC is, “How does the owner of the LLC remain anonymous?
The answer Is by having someone like a business lawyer and organization identify itself as the organizer and Registered Agent - the only specific information contained within the Articles of Organization that is published by the State.
It’s important to remember that in Wyoming, anonymity is not absolute. You still must pay taxes, report to the IRS, and maintain bank accounts. These acts do allow for leaks to the public to occur. Additionally, Anonymous LLCs are not immune to lawsuits.
Why would someone create
an anonymous LLC?
An Anonymous LLC provides all the benefits of a regular LLC, with the additional benefit of not disclosing ownership information on the Internet.
Professions such as landlords, CEOs, celebrities, and investors would all benefit from forming an Anonymous LLC. However, when privacy is important to you, establishing an Anonymous LLC to protect you and your members may be the right choice for you, regardless of your profession.
Benefits of Anonymous LLCs in Colorado
There are several benefits for registering as an Anonymous LLC rather than as a public entity.
Privacy Protection
Privacy protection is the number one benefit of forming an Anonymous LLC. This type of business formation is simply about keeping your personal information off the public records to maintain your privacy.
Confidentiality
As an Anonymous LLC, you can conduct business without being associated with any negative fallout that may be generated from the business.
Flexibility
Regular LLCs and Anonymous are flexible by allowing partners to join companies at different stages. This may cost more in different states.
Harassment Prevention
Registering as an Anonymous LLC helps prevent potentially dangerous individuals, such as stalkers and criminals, from having access to your information to use in a malicious or harassing manner.
Tax Advantages
If you choose to form an Anonymous LLC in Wyoming then it’s among the most tax-friendly for Anonymous LLCs. The state requires no corporate income tax for LLCs and the only annual fees required is an Annual Report which is typically $50-$100 but depends on assets within the state.
How to Form an Anonymous LLC in Colorado
There are several steps for forming an Anonymous LLC in Colorado.
7 Steps to Form an Anonymous LLC in Colorado
- Selecting the State of Formation
- Selecting the LLC’s name
- Assigning a Registered Agent
- Filing the Articles of Organization
- Getting an EIN
- Forming Business Operating Agreement
- Completing the Licensing Requirements
When you have the right lawyer to help you, starting an Anonymous LLC as a Colorado resident is easy. You only need three things to get started:
- A business lawyer to ensure complete privacy.
- A name for your business.
- A Registered Agent (this can also be your lawyer) with a physical mailing address.
What is the difference between a regular LLC and an anonymous one?
From a legal perspective, there are no differences between a regular LLC and an Anonymous LLC. Owners must file for an Employer Identification Number (EIN) by filing an application with the IRS. And just like regular LLCs, an Anonymous LLC enjoys the same benefits such as tax advantages, flexibility, limited liability protection, and more.
The only differentiating factor is that with an Anonymous LLC, the identity of its members and managers are hidden to the public. Due to the increased privacy protection, it is slightly more difficult to obtain an Anonymous LLC, but certainly nothing that should hold you back.
Get Help From a Business Attorney
Owning and operating a business requires that you deal with clients, employees, suppliers, vendors, banks, IRS, and other stakeholders. That’s a lot of people involved when you want to remain fully anonymous, which is why contacting a business lawyer is a smart decision.
While there are a few Internet companies that offer Anonymous LLC services, the problem is anonymity is often destroyed without a reliable lawyer on your side. Only lawyers can provide attorney-client privilege and confidentiality, and ensure things are done correctly.
If a lawsuit were to present itself, attorney-client privilege makes it difficult to identify ownership information even through a subpoena. Attorney-client confidentiality means your attorney has an ethical duty and obligation to maintain your confidence.
If you think you would benefit from creating an Anonymous LLC in Colorado, then contact us today. It can be difficult to create an Anonymous LLC on your own, our experts make it easy. Learn about the different states which allow anonymous LLCs.
