Delaware is a good choice for starting an anonymous LLC because of its strong privacy laws. Delaware is one of the few states that allow for anonymous LLCs to be formed, meaning that the owner's personal information is not required to be disclosed in public records.
Alaska, Nevada, and Delaware are all top jurisdictions for self-settled trusts.
1. Choosing the Right State: Wyoming and New Mexico are popular choices for non-residents because of their low fees and no state income tax. Wyoming is particularly known for strong asset protection and privacy, while New Mexico offers low annual fees.
Along with the possible benefits of registering an anonymous LLC come some drawbacks: Anonymity is not 100% guaranteed. The state, bank, IRS, Financial Crimes Enforcement Network (FinCEN), clients, partners, and vendors may be privy to the LLC owner's private information.
Setting up a blind trust typically involves appointing a trustee, drafting the trust agreement and transferring assets into the trust, ensuring the owner has no direct involvement in the decision-making process. Consider working with a financial advisor if you need help creating or updating an estate plan.
Privacy Protection
One of the primary benefits of an anonymous LLC is the protection of the owners' privacy. This can be particularly helpful for individuals who wish to keep their business interests confidential for personal or professional reasons.
Some states, such as Delaware and Nevada, are popular for their business-friendly laws and well-established legal precedents that protect LLC members. Costs: Each state will have its own initial formation fees, annual report fees, franchise taxes, and other costs associated with maintaining an LLC.
Wyoming registers around 40,000 new LLCs and other entities during a three-month period. ¹ Known for its business-friendly regulations, Wyoming does not collect personal or corporate income tax and business owners are not required to be state resident.
The answer is yes; you can legally live in a different state than where you formed your LLC. However, whether you want to is a different story.
Selecting an individual trustee
Choosing a friend or family member to administer your trust has one definite benefit: That person is likely to have immediate appreciation of your financial philosophies and wishes. They'll know you and your beneficiaries.
Some states do not tax the income of trusts: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. Most Delaware trusts will not be subject to tax. States classify trusts as resident or non-resident.
The minimum cost to form a Delaware LLC is $110 for the state filing fee. You should budget for additional expenses such as the franchise tax, registered agent fees, and fees for any applicable business licences or professional services.
Does Every State Recognize LLCs? Yes, every state in the United States recognizes LLCs and requires business owners to file official paperwork with their state's government in order to form one. Creating your own business from scratch is no small feat, but it's not impossible.
No Asset Protection Guarantee
Wyoming does have asset protection laws, but these are not as good as they may seem at first. That is because anyone who is out of state, like most LLCs, will have to deal with conflicting laws. In that situation, the Wyoming asset protection laws become irrelevant and lose their benefits.
You can form an LLC in Nevada even if your business will not be located in Nevada and/or no LLC members will live there. But you will probably still need to qualify your LLC to do business in your home state—and this means you'll have to file additional paperwork and pay additional fees.
No State Business Taxes in Wyoming
So, LLC members will pay taxes on the income they earn from the LLC but the LLC itself won't pay income tax. By default, LLCs are classified as partnerships. However, LLC owners can elect to have their business taxed as a corporation at the federal and state level.
Anonymity. Four states — Delaware, Wyoming, Nevada, and New Mexico — offer “anonymous LLCs,” which are intended to keep members' names and personal information out of the public eye. This added privacy protection is appealing to many entrepreneurs, but it's important to be aware of its limitations.
Filing fee of $100.00.
To file online, visit: https://wyobiz.wyo.gov. Make check or money order payable to Wyoming Secretary of State for paper filings. within 60 days of the due date the entity will be subject to dissolution.
Wyoming is the cheapest state for LLC formation but has a limited local market. Alaska has no state income or sales tax, though local taxes may still apply. South Dakota provides tax advantages with no state income or corporate tax but offers limited privacy protections.
The Anonymous Trust LLC Structure
Using a trust in this manner allows you to hide the ownership information of your company, including its assets.
You cannot open an anonymous LLC bank account. While you could protect your identity through an anonymous LLC, banks generally require personal information.
Advantages of a Corporation
Corporations offer more flexibility when it comes to their excess profits. Whereas all income in an LLC flows through to the members, an S corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.