If you want to establish a business while safeguarding your privacy, forming an anonymous LLC could be a good option. Although Texas does not permit the formation of anonymous LLCs, you can register your LLC in a state that does, and then bring it to Texas.
What Is an Anonymous LLC?
An anonymous LLC is a limited liability company where the owners’ identities are not publicly disclosed by the state. While not a specific legal term, an “anonymous LLC” refers to a standard LLC registered in a way that keeps ownership details private. It’s sometimes called a “confidential” or “private” LLC. Though anonymous LLCs protect the owner’s identity from public records, they still require tax payments, bank accounts, and are subject to lawsuits.
Benefits and Drawbacks of an Anonymous LLC
Registering as an anonymous LLC offers several privacy benefits, including keeping your identity and address out of public view. This structure is popular among public figures, victims of abuse and those running controversial businesses (e.g., cannabis operations), as it provides a layer of protection against unwanted attention and harassment.
Anonymous LLCs can also help those looking to separate their business and personal life, or those wanting to shield financial details from employers, creditors or family members.
However, complete anonymity is not guaranteed. For example, you’ll still need to disclose your identity to banks and the IRS, and lawsuits can sometimes compel you to reveal your information. Securing a commercial lease may also require sharing your name, so working with a contract attorney can help ensure that confidentiality clauses are added to safeguard your privacy in contracts.
How to Set Up an Anonymous LLC for Use in Texas
Anonymous LLCs are only available in certain states, including Delaware, Nevada, New Mexico and Wyoming. For Texas residents, a workaround allows you to achieve similar privacy by forming an anonymous LLC in one of these states, then registering it as the owner of a new LLC in Texas.
By following the right process, you can protect your name, address, phone number, and email from appearing on Texas public records in association with your business.
Best States for Registering an Anonymous LLC
Delaware and New Mexico are among the most popular states for forming anonymous LLCs:
- Delaware has a well-developed business court system and offers enhanced personal liability protections. Additionally, Delaware does not require corporate income tax.
- New Mexico is attractive for its privacy options, as it does not require any individual names in LLC filings and has no annual reporting fees or taxes
In both states, a registered agent (such as an attorney or service provider) can act as a third-party representative, helping to maintain your privacy – not to worry, we can have the connections in each state to make it happen! Once established, this out-of-state LLC can serve as the owner of your Texas LLC.
Why You Need an Anonymous LLC Attorney
Working with an attorney can simplify the process of forming an anonymous LLC and ensuring your privacy in Texas. In addition to setting up your LLC in a privacy-focused state and registering it in Texas, an attorney can act as your registered agent, ensuring your Texas LLC receives legal and tax documents confidentially. An attorney can also draft confidentiality clauses for leases and contracts to prevent your identity from being disclosed.
