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States that hide LLC Ownership Information from Public Search

So you want to start your Limited Liability Company but you don't want your name listed publicly. People ask "what are you hiding", "why don't you want people to see who owns the company", "are you doing something illegal"?  My answer is, I'm not hiding anything, I simply do not want my name publicly posted on the secretary of states website. My company membership information is my business and not everyone else's. There was a point in time when people didn't discuss what they own, how much money they have and what business they are involved in. We used to be a society of private people. I do not want my name on my company records for safety reasons, and I do not want to get sued personally. 

Getting sued


There is this false perception that you are exempt from creditors and lawyers if you own an LLC. Wrong!  If your name is on the Secretary of State website they are coming after you. Creditors, lawyers and anybody who sues has a better chance of getting stuff from you than your LLC.  If my LLC was formed in a private State my name is not there to be associated with the LLC, therfore the paper trail stops there.  If anyone is getting sued its my LLC and not me because they could not possibly tie my name to the LLC. 

Safety 


I once had a contractor who I had to terminate our contract with due to fraudulent transaction conducted by the contractor. In our agreement with the contractor, all funds due would go through a 30 day holding process to sort through all fraudulent transactions. This contractor looked up who owned the LLC on the Secretary of States website (I didn't understand the benefits of privacy back then) and then did a property search. That contractor found out who owned the LLC and where I lived as my Home was in my name.  The scary part was when the contractor showed up at my front door demanding the money. This person could have showed up with a gun and held me for ransom. Had my LLC been private this person would never have shown up at my home. 


There are several States that do not publish Members or Managers information for public search. 

First tip in remaining private do not fill out the paperwork yourself. Pay someone to be your organizer (this can be anyone with a different last name than you). This is simply the persona organizing and delivering your LLC paperwork.  Also hire a registered agent for an annual fee. 

Your paperwork will look something like this. Company name, company address (please don't use your home address ) your Organizers name and signature (make sure you put their title as organizer on the paperwork), and register agents address. This will ensure your name isn't posted on the Secretary of States website. However the State will mail your your certified copy of Articles of Organization. DON'T LOSE THE ORIGINAL ARTICLES. I would also get a notarized letter from the organizer stating that they hold no interests in your LLC and are simply organizing and delivering your paperwork. 

You will run in to some issues with bankers as you are now very private and they cannot verify your ownership in the company. In a few days I will post the work around for that.  

Private States


New Mexico
Delaware
Colorado
Wyoming
Indiana 
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Comments

  1. BdogMarch 17, 2014 at 10:41 AM

    Hi, do I need to have an address in the state where my LLC is filed or can I use a PO Box in the state in which I live?

    ReplyDelete
  2. ChrisMarch 17, 2014 at 11:15 PM

    Has to be a street address. UPS stores work great.

    ReplyDelete
  3. GeorgeMay 31, 2014 at 7:16 AM

    Thanks for the information. How do you then open a bank account?

    ReplyDelete

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