According to Gartner research, a staggering 88% of firms consider cybersecurity a business risk rather than just a technical IT issue. This is a result of the requirement of keeping records public about a new LLC. Normally, the process of forming an LLC requires listing the name of the entity or person forming the LLC, as well as the registered agent, who is in charge of receiving legal services and notices on behalf of the LLC. With such LLC formation documents becoming easily accessible online, protecting your personal and business information has never been more important.

And that's where the benefits of an anonymous Limited Liability Company, or LLC, come into play. An anonymous Limited Liability Company, or LLC, has been a popular choice for business owners and entrepreneurs who seek to protect their personal assets while conducting business. By forming an anonymous LLC in New Mexico, you can keep your information private and reduce the risk of frivolous lawsuits. In contrast to Nevada, Wyoming, and Delaware, New Mexico is the only state that does not require business owners to disclose the identities of owners, managers, and members, nor does it require any additional annual reports.

In this guide, we will discuss the many benefits of forming an anonymous LLC, including reduced legal risk, greater privacy, and peace of mind in the face of a rapidly changing technological landscape. So, whether you're a new business owner or are a seasoned business person, keep reading to know if an anonymous LLC is a right choice for you.

But first, let's understand how an anonymous LLC works in the first place!

How an Anonymous LLC works

The state does not publicly identify the owners of an Anonymous LLC. It prevents the public disclosure of the LLC's ownership information (i.e., members) in the state where the LLC is registered. All this is accomplished by legally and carefully registering a regular LLC in states that allow anonymity, e.g., New Mexico. It is also possible to create a parent/child arrangement. In this scenario, the parent company is an Anonymous LLC that serves as a holding company and owns a lawful operating company (child) in each state where it does business.

Various types of business owners seek anonymity. For example, owners of rental properties would prefer that their tenants contact their property manager rather than them personally. Others are sellers of online goods on e-commerce platforms who don't want their addresses and names published alongside their seller information. 

Benefits of an Anonymous LLC Stay Confidential

In legal settings, asserting attorney-client privilege limits the amount of information disclosed. Not only are your communications with your lawyer private, but all ownership information you want to keep private is also protected by the same level of confidentiality. 

Prevents frivolous lawsuits

The formation of an anonymous LLC makes it harder for malicious people to harass any of the business entity's owners. There are many opportunists in the world looking to make a quick buck. As such, keeping your name off your LLC's ownership records can help you avoid frivolous lawsuits. You can avoid unwanted harassment from salespeople, competitors, or anyone else interested in you or your property. 

Safeguards Assets

Putting your assets, such as real estate investments, in an anonymous LLC can help protect them from personal creditors. 

Privacy Protection

You can protect your privacy by forming an anonymous LLC and keeping your name and address off the internet. 

Tax Breaks

An anonymous LLC, like all LLCs, provides benefits that a partnership or sole proprietorship cannot. More tax deductions are available to LLCs, such as deducting medical expenses from the general revenue column of your income statement. The primary tax benefit of forming an anonymous LLC is known as a pass-through, which allows your LLC to avoid paying the higher corporate income tax rate. Earnings pass through to be taxed at individual income tax rates rather than paying corporate income taxes. 

Final Thoughts

Forming an anonymous LLC offers numerous benefits for business owners looking to protect their personal and business information from potential legal risks. An anonymous LLC may be the right choice for you want to protect your assets and information. Ready to learn more? 

Brought to you by John Glover