By The Wyoming LLC Attorney Team
Feb 27, 2024Anonymous LLCs can have a lot of benefits including increased privacy and lower likelihood of frivolous lawsuits. However, forming an anonymous LLC in Illinois can be tricky as the state requires all members and managers to be listed. In this guide, we will explain the benefits of forming an LLC anonymously and then how to form an Illinois LLC anonymously.
An anonymous LLC, or limited liability company, is a company in which the names of the members are not openly available to the public – they are not identifiable by the state which adds a level of privacy. There are a lot of benefits to opting for an anonymous LLC in Illinois, however there are some things that you need to be wary of in order to set one up. You need to be careful about the way you set up the LLC to make sure that it can stay anonymous. Some states only require the organizer or a manager to be listed on the articles of organization. In this case, a nominee manager can be listed. However, Illinois requires that any member with the power of a manager be listed. Because of this simply hiring a nominee manager is insufficient.
The core difference between an anonymous LLC and an ordinary one is that the owner of an anonymous company can stay much more private. Read on to find out how this works.
The best way for an owner to maintain privacy is to choose a state that allows anonymity. Anonymous LLC states include Wyoming, Delaware, Nevada or New Mexico. If the company you are forming is not bound to Illinois by real estate, employees, or contracts, then we would recommend choosing one of these states to domicile your company.
However, if you must form an LLC in Illinois, the other option for maintaining privacy is through a holding company set up. This is helpful when an owner has to be listed. All you have to do is use an anonymous company from a different state as the owner of your Illinois company. If you list your anonymous holding company as the owner and use a third party as the organizer and registered agent, then all of details that are published publicly about your company will keep you private.
The biggest benefit of an LLC is charging order protection. A charging order is a lien ordered by a court placed on a company's distributions. Charging order protection guarantees that a member's personal debtors cannot place a charging order against the company. Anonymous LLCs only make it more difficult for personal creditors to go after your business and vice versa. You can enjoy this benefit and more when you opt for an anonymous LLC.
Starting an anonymous LLC has a whole host of benefits including:
One of the most prevalent benefits of choosing an LLC with anonymity is that you have a lot more privacy and protection over your information. By filing anonymously, you keep your name and address off of the internet.
During a time when almost anyone has complete access to the internet and can find details in an instant, it is important to be vigilant about what information you allow to be publicly available online. Details such as the properties you hold and your financial status can be shared if you don’t choose an anonymous option. Owning an anonymous LLC ensures the confidentiality of information regarding your real estate and finances.
When it comes to owning or running a business, it is not uncommon to experience some forms of harassment and unwanted pestering. This could come from salespeople, competitors, or others who want information or want to get in touch with you for other reasons. Either way, you should not have to deal with harassment, and choosing an anonymous LLC means that you won’t have to. Since you do not have to publish your identity or your address, you will not have to face any of the harassment that you may have otherwise.
Another benefit of choosing an anonymous LLC is that it protects you from frivolous lawsuits. It is easy to find information and details on companies and their owners online. Unfortunately, there are many people who are simply looking to make money through lawsuits. To avoid these professional plaintiffs, it is a good idea to choose an anonymous LLC so that your information cannot be found and you are much less likely to face these time consuming and potentially expensive issues.
One of the main benefits of an LLC is that it means that your personal assets are protected in the event that anything goes wrong for your company. Under an LLC, only the assets of the business are liable to be taken away when it comes to lawsuits or personal creditors. If you choose this option, then you and your family’s personal belongings and assets cannot be seized or touched when it comes to any issues that the company faces. It also protects any real estate investments that you make personally, meaning you don’t stand to lose your home even if your business goes bankrupt.
It is always best to consider the worst case scenario and prepare for this just in case things don’t go how you hope them to. For this reason, choosing an LLC is a very popular option as it means protecting you and your loved ones from any potential problems and drastically reduces the risk posed when you start your business.
Illinois is one of the states in which the members' names are listed as part of the Articles of Organization kept on file. This means you cannot simply set up an anonymous LLC, as you will be listed as a member and your information will be shared. However, this does not mean you cannot start an anonymous LLC at all – there are simply some extra steps.
A double LLC works by having one LLC created with anonymity and then creating a second which is owned by the first. This structure allows you to enjoy anonymity even in states that continue to publish the information of members. Here are the steps you need to follow to form an anonymous LLC.
Where a double LLC differs from a regular one is that you will need to first create a holding company in an anonymous state, then form another company in Illinois owned by the holding company. This is the best way to keep your anonymity and is definitely worth it to keep your information to yourself. It can be a complicated process, however, with help from professionals, this option is definitely the best for many businesses.
The first step is to come up with a name for your business. As long as the name is not already taken in the state of Illinois, you can pick any name you’d like. However, be sure that your business name does not include personal information. If Henry doesn’t want anyone to know he owns this business, he should refrain from naming it “Henry’s LLC.” You also have to have the words ‘limited liability company’ or some form of abbreviation included in the name.
You have to have a registered agent to file for an LLC in Illinois. This is who will be responsible for processing documents and has to have a physical Illinois stress address that can accept mail during business hours. If you don’t care about privacy, a registered agent can be anyone with an Illinois address. However, we would recommend using a professional registered agent service to maintain your privacy as this information will be listed publicly on the Secretary of State website.
The next step is to make sure that you have all of your documents in order and file all of your Articles of Organization. These will include information such as the name and place of your business as well as the registered agent. As Illinois requires the name of the organizer, you must have a third party form your LLC if you hope to remain anonymous.
You need to draft an operating agreement. This is not explicitly required by Illinois law, but it is necessary for your LLCs internal records. An operating agreement should include profit and loss distribution, meeting schedules, percentage of members’ ownership and voting rights.
Finally, you need to set up your business and get all of your tax accounts in order. This can be done online, but must be taken care of to abide by laws. We recommend opening a bank account for your business to avoid commingling funds. We also recommend working with a CPA to ensure your business taxes are filed properly.
If you are looking into starting an LLC, an anonymous LLC is the best option for the majority of people. It may be more complicated to set up, but keeping your details private is always a positive. For example, anyone who suspects they may be the victim of harassment and targeting would benefit from being able to keep their information private through an anonymous LLC. Even if you don’t think this could happen to you, keeping your name, address and financial information off the internet is always a good idea for a business owner, or anyone else. For this reason, it is definitely worth considering an anonymous LLC, especially if you live in a state where it is easier to set one up. Even if you don’t, however, it would definitely benefit you to go the extra mile to make sure that your information stays private.
If you're venturing into entrepreneurship for the first time or seeking to ensure a smooth and accurate business setup, enlisting the services of a business lawyer is a wise and highly beneficial decision. Further, it ensures that your LLC is following all of the rules and that you stay compliant through your first few years as the company grows and hires more employees or starts to earn more profit.
Overall, there are many benefits to choosing an anonymous LLC for structuring your business. If you are ready to establish an LLC and have inquiries about the process, please reach out to us through our online form or by calling +1 (307) 683-0983. A member of our team of experienced paralegals will assist you throughout the process.