Advanced digital technology makes it easy for your business to be searched online. How do you prevent your business from being exposed in this rapidly changing digital era? The answer is by forming an anonymous LLC.
Overview of an Anonymous LLC
An anonymous Limited Liability Company (LLC) keeps the members of the business entity out of the public eye. Forming an LLC that remains anonymous requires you to be careful as to where you form your LLC, as well as how you form it.
Legal counsel provided by Cloud Peak Law Group can help you keep ownership information private when it comes to forming an LLC in the state or states where you plan to operate. Anonymity involves a third party such as Cloud Peak Law Group acting as the registered agent for your newly formed LLC, as well as leveraging the ability to protect confidentiality by invoking attorney-client privilege.
Why Forming an Anonymous LLC Makes Sense
Why should you go through all the trouble to remain anonymous with an LLC? There are several advantages. Advantage number one applies to all LLCs in that the members get limited liability protection against any legal issues that arise.
Like all LLCs, an anonymous LLC delivers advantages that you cannot enjoy by forming a partnership or sole proprietorship. The IRS allows more tax deductions for LLCs, such as subtracting medical expenses from the general revenue column of your income statement.
The main tax break of forming an anonymous LLC is referred to as a pass-through, which allows your LLC to avoid paying the often higher corporate income tax rate. Instead of paying corporate income taxes, earnings pass through to be spread among each member of the LLC who is taxed at individual income tax rates.
Asserting attorney-client privilege limits the amount of information that is disclosed in legal settings. Not only are the communications you have with your lawyer confidential, but the same level of confidentiality also applies to all ownership information that you want to remain private.
Privacy Minimizes Harassment
Forming an anonymous LLC means it is difficult for members of the general public to harass any of the owners of the business entity. Harassment comes in many forms, but the most prevalent type of harassment concerns financial issues, such as the filing of frivolous civil lawsuits.
Which State is Best for
Filing an Anonymous LLC?
You might hear plenty about the benefits of forming an anonymous LLC in states like Nevada, Delaware, and New Mexico. However, Wyoming is the best state to keep your LLC anonymous for several reasons: The state has no corporate income tax; the annual fee is just $50; and attorney-client privilege is a legal concept that is strongly protected by Wyoming law.
Hiring an Attorney to
Form Your Anonymous LLC
Working with a lawyer can help you select a name for your anonymous LLC, as well as establish a physical address that is not associated with your business. Your attorney can act as the registered agent for your anonymous LLC, which frees up more of your time to operate your business.
Contact Cloud Peak Law Group to learn more about the many benefits associated with forming an anonymous LLC in Wyoming.