Free BOI/CTA filing for all clients. Receive your LLC, EIN, and bank account SAME-DAY. Learn more.

By The Wyoming LLC Attorney Team

May 04, 2023
Home
  1. Anonymous LLCs

Anonymous LLC in Arizona

How to Start an LLC

Summary

An anonymous LLC is a limited liability company that keeps the owners' personal information private. Some states that allow anonymous LLCs include Delaware, Nevada, New Mexico, and Wyoming. If a business owner wants to form an anonymous LLC in Arizona, they should form a holding company LLC in an anonymous LLC state to be a member of their Arizona LLC. The article explains how to form an anonymous LLC and lists the steps involved.

LLCs provide limited liability protection, pass-through taxation, and flexibility. Anonymous LLCs allow you to keep all of your personal information private while making it very difficult for the general public to determine who owns your LLC. Anonymous LLC states do not require the LLC’s members to be listed in the articles of organization, meaning owners are not able to be publicly identified. An anonymous LLC isn’t a completely separate business entity, but a version of an ordinary LLC. Unfortunately, Arizona requires that all members be listed on the articles of organization. However, this does not mean that Arizona residents cannot remain private while owning a business.

Depending on the nature of your business, it may be in your best interest to form an LLC in a state other than Arizona. You are not required to form an LLC in the state in which you reside and can form an LLC in any state. If your LLC owns property in Arizona, has employees who live in the state, has a physical location there, or has regular binding contracts there, then you will probably need an Arizona LLC. In this case, you should follow the instructions below if anonymity is important to you. However, if this is not the case, you should consider forming in either Wyoming, Nevada, or Delaware. Each of these states has very favorable business laws and each has its own advantages and disadvantages.

What is an anonymous LLC?

An anonymous LLC is a limited liability company where the owners and managers are not made known to the general public. Owners and managers choose to form an anonymous LLC to keep their personal information and business private. In some states, the Secretary of State does not publish or require you to give any contact information or names of the owners of the LLC. Instead, they require the registered agent to maintain that information. This means that no one will know who owns the LLC except your registered agent and the IRS. Additionally, no one can find out without going through the court.

The anonymity of the company can help to protect the owners from any personal liability in case of legal action or potential bankruptcy. Some of the states that allow anonymous LLCs include:

  • Delaware
  • Nevada
  • New Mexico
  • Wyoming
Start an LLC in Arizona

How an Anonymous LLC Works

When you form an LLC in a state that allows anonymous LLCs, you follow the exact same steps as when you form any LLC. However, it’s important to note that you must list the organizer (the person filing the paperwork) and a registered agent in your articles of organization which will be published on the secretary of state website. In order to maintain privacy, you must use a third party to organize your company.

However, the process to form an anonymous LLC is different in a state like Arizona. Arizona requires that you list all members of the LLC. You can maintain your privacy and follow Arizona law by forming a holding company LLC in an anonymous LLC state to be a member of your Arizona LLC. That process is as follows.

1. Choose a Name for Each Company

You will be forming two companies, so choose a name for each. This name can be almost whatever you’d like, but bear in mind that it will be available to the general public.

Each state has its own regulations on LLC names. Generally, an LLC’s name:

  • must include the words “ Limited Liability Company” or some abbreviation of the phrase.
  • Must not include an acronym that is used by the US government (IRS, SEC, FBI, etc.)
  • Must not include words that allude to providing a professional service that requires licensing unless you obtain proper permits. If you wish to use words like university, law, or architecture, you might have to include a licensed professional as a member of your LLC and file additional paperwork.

2. Choose a Registered Agent

A registered agent is a professional who receives mail and legal services on your behalf. They must have a physical address in the state and be available during business hours. They often also make sure your business is compliant by filing your annual report. You should choose a service that is reliable like Wyoming LLC Attorney.

3. Decide a Management Structure

Your business can choose to be member-managed or manager-managed. Your holding company can follow any management structure you choose. Because the anonymous states listed above do not require you to list the members or managers of your business, this information should be documented in your operating agreement.

Your Arizona LLC should be member-managed and have the sole member of your holding company.

4. Form an LLC in a State That Allows Anonymity

This is the first step in forming a double LLC/holding company setup. This LLC will act as your holding company. We find that most people benefit from a Wyoming LLC, but the right state for you depends on your circumstances. Make sure you set up the LLC properly by hiring a 3rd party organizer and registered agent. If your name ends up on the articles of organization, you will lose your privacy

5. Form an Arizona LLC

Form an Arizona LLC using a 3rd party to register as the organizer and Arizona LLC registered agent. List only the holding company LLC from Step 1 as a member. If you list yourself as a member, you will use your anonymity.

6. Create an Operating Agreement for Each Business

Operating agreements are one of the most important documents for your LLC. Though many states do not require them and you do not need to file them with the state, an operating agreement can solve a lot of legal issues down the road.

Operating agreements specify the LLC’s operating structure, management roles, dissolution procedure, member obligations, profit and loss procedures, voting procedures, etc. They are crucial for LLC conflict resolution and make your LLC look legitimate if you ever have to go before a judge.

7. Apply for Business Licenses

Depending on the state and nature of your business, you may have to apply for business licenses.

8. Obtain an EIN for Each Business

An EIN is comparable to a social security number for your business. They are required to open a bank account and hire employees.

9. Open a Business Bank Account for Each Business

Commingling funds is the most common mistake LLC owners make to ruin their asset protection. Avoid this by opening a bank account for each business entity and keeping good records of your business finances.

Why Would Someone Create an Anonymous LLC?

An anonymous LLC provides all of the benefits of a regular LLC, with the additional benefit of not disclosing ownership information on the Internet. Do you want your home address online? Do you want friends, neighbors, and strangers to know what you own? Do you want a history of all the properties you have owned?

You can keep all that information private if you create an Anonymous LLC. Anonymous LLCs are used by many people for many reasons. If privacy is important to you, then an Anonymous LLC may be right for you.

Benefits of Anonymous LLCs

Anonymous LLCs are a great option for businesses that want to maintain privacy. Here are some of the main benefits of anonymous LLCs:

Privacy Protection and Confidentiality

Anonymous LLCs protect your privacy which can be invaluable. If you have a home business, you do not want the general public to be able to find out where your children live, for example. Anonymous LLCs are a great choice for owners who want to keep their business and personal lives separate.

Harassment Prevention

Another benefit of anonymous LLCs includes harassment prevention. If you're an individual who is at risk of being harassed by another person or group, you may want to consider setting up an anonymous LLC. This will allow you to protect your personal business information and help to reduce the risk of harassment.

Anonymous LLCs can help prevent harassment because they help to keep your name and address out of public records. This means that people can’t find out where you live, where you work, or how to contact you. This makes it much harder for them to try to locate you or threaten you.

Tax advantages

Another benefit is that anonymous LLCs create a tax-advantaged business structure. Anonymous LLCs, like any LLC, have no corporate income tax requirement. This means that you can avoid completing any corporate tax returns and reduce your taxes overall.

bench

Accurate Financials. Total Peace of Mind.

Save time and money on bookkeeping and income taxes with Bench’s experts & software.

Learn More

Increased flexibility

Anonymous LLCs allow you to create a company that is separate from you, and the partners in the LLC can join at different stages. This means that the partners will have more flexibility to vary the ownership of each business function or key asset.

Is Anonymous LLC Right For You?

If you are a celebrity or public figure who wants to limit harassment from fans, an anonymous LLC is right for you. Anonymous LLCs are also ideal for business owners who may run a controversial type of company and want to limit their liability. They're also great for entrepreneurs who are looking to leave their current job so they have the freedom to contact investors, suppliers, and clients. They are also perfect for anyone who simply wants to exercise their constitutional right to privacy. An anonymous LLC is essentially ideal for anyone who wants to keep private information away from any potential threat to them, their family, or their assets. It’s a fast and easy way to keep your information private such as a property you want to keep private or not wanting your name and address published for the public to see.

Contact a lawyers

You can form an anonymous Arizona LLC without the help of a lawyer, but there are several benefits to working with one. An experienced attorney can help you select the right type of structure for your business. They can also help you with reviewing any paperwork and making sure it's correctly filed with the state.

An experienced lawyer can also advise you on how to protect your assets from any potential liabilities that could occur. They can also help you avoid potential conflicts with other members of your company and make sure that everyone understands their rights and responsibilities. We at Wyoming LLC Attorney have formed over 55,000 companies and we specialize in holding company structuring. So, if you need an anonymous LLC in Arizona, you can trust us to form it for you quickly and correctly.