Privacy


If you have a high privacy goal you may want to think about using a Nevada, Delaware or Wyoming LLC. Each of these states have very strong privacy laws. Nevada has long been famous for its claim to not have a reciprocal information-sharing agreement with the Internal Revenue Service. Nevada doesn’t even ask for ownership information for LLCs formed in that state – you are only required to list the managers of a manager-managed LLC.

However, one thing that Nevada does, is require you to list either the Managers (in a manager-managed LLC) or the Members (in a member-managed LLC). Delaware and Wyoming don’t require you to make this disclosure.

But one thing Nevada does is allow for Nominee Managers (Wyoming does this too)

A Nominee Manager is a person or another business structure appointed as the public face for an LLC. Nominee Managers enter into a private agreement with the LLC to carry out the instructions of the LLC’s members, so the owners can remain confidential. There is also special, extra language you’ll need in your Operating Agreement to deal with this position.

By using a nominee as the Manager of your LLC, you can maintain a very high level of privacy. But there are times when you may not want this. For example, if you need to demonstrate to a bank that you are the owner of an entity, they may question why the Nominee is involved, or look at the Nominee when deciding on business credit or loans for your business. You don’t want your Nominee to interfere with your ability to get financing. So if privacy is an issue for you, along with full control, then you might want to look at the Delaware or Wyoming alternatives instead.

There are many variables when you’re structuring a business. That’s why it’s hard to go through a quick-service website. Unless you talk to someone who’s got some knowledge and experience on both the tax and the legal side, it’s hard to know what you don’t know. And that can leave you vulnerable.

Got questions? Contact us! We’re here for you.

Related posts:

Leave a Reply