The Best States to Form an LLC for Privacy (2024)

For various reasons, people sometimes want to form a business while keeping their identities private. That can be accomplished by registering an anonymous LLC, sometimes called a private or confidential LLC. States that allow these types of LLCs do not publicly identify the names, addresses, or contact information for members, allowing them to shield their identities.

An entrepreneur may want an anonymous LLC to hide a business from an employer who doesn’t know the employee is planning on leaving their position, or so as not to disclose the purchase of real estate. Some people simply don’t want their personal information floating around on Google or another search engine.

4 States that Allow Annonymous LLCs

If you’re interested in registering a private LLC, you’re limited to the states that will permit you to do so. As of May 2024, only four states: Delaware, Wyoming, New Mexico, and Nevada, allowed the formation and operation of anonymous LLCs.

1. Delaware

Delaware is known for its business-friendly environment, including the ability for anonymous LLCs. Delaware gives LLC members the right not to disclose their names or any personal information when filing their business. Like other states, an LLC registering in Delaware does have to provide the name and address for a registered agent, which is someone designated to receive legal correspondence and other documents on its behalf. No other names, however, appear on the public record. Because of that lack of reporting, LLC members are not required to live in the state.

It’s not uncommon for an LLC to form in Delaware but operate from another state. In that case, the business is considered to operate as a domestic LLC in Delaware and a foreign LLC in other states where it does business. That means the LLC can enjoy the benefits of Delaware’s lenient privacy and tax laws while doing business elsewhere.

2. Wyoming

Like Delaware, Wyoming is known for its business-friendly climate with its policy allowing anonymous LLCs and no corporate or personal state income tax. In 2024, Wyoming ranked first in the Tax Foundation’s Business Tax Climate Index.

The Office of the Secretary of State doesn’t require the names of LLC owners or managers to be included in the Articles of Organization. And because there is no income tax for businesses or individuals, there’s no need to file any personal information with the state. Wyoming is known for its strict privacy laws, attracting many business owners who do not want their identities to be known. You’ll need to give the name of a registered agent to the Secretary of State, but no other identities are required.

3. New Mexico

Because New Mexico requires only the names of the registered agent and the LLC organizer—the person or company who files the LLC formation paperwork with the state—an LLC is anonymous by default. The state maintains no records of management or ownership, making it an attractive option for individuals seeking anonymity. As with other states, you’ll need to name a registered agent.

4. Nevada

While Nevada currently allows for anonymous LLCs, the Secretary of State requires a list of members and managers to be submitted with the Articles of Organization. The names are not available to the public and creditors cannot access the LLC’s records, but they are known to the state. This makes Nevada less attractive to LLC members wishing to remain anonymous, as state requirements and procedures are known to change, and some individuals fear their names could be made public. Nevada also requires the name and address of a registered agent.

Before You Form an Anonymous LLC

If you’re interested in forming an anonymous LLC, you should consider which of the available states provide the degree of privacy protection you’re looking for and consider other factors, such as business laws and tax codes. A state that allows anonymous LLCs doesn’t necessarily offer the most benefits in other areas.

You’ll need to remember that LLC owners should not expect airtight identity protection, even in states that allow anonymous LLCs. The business’s Beneficial Ownership Information Report, a reporting requirement that took effect in 2024, requires that the LLC name all its members when filing the report with the Financial Crimes Enforcement Network. Also, the IRS, financial institutions, vendors, and other parties may be able to access an LLC’s owners’ information.

While there are good reasons for some LLCs to form outside of their own states, registering your business with the state where you live and are likely to conduct most of your business is usually the easiest and most cost-effective way to proceed. I’d strongly suggest you seek advice from a qualified attorney or other professional before deciding to go out of state to form an anonymous LLC.

The Best States to Form an LLC for Privacy (2024)

FAQs

The Best States to Form an LLC for Privacy? ›

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.

What state is best for LLC privacy? ›

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.

Which state offers the most protection for an LLC? ›

Nevada: Nevada has strong asset protection laws and privacy protection. It does not require the disclosure of LLC members, and has few restrictions on LLC management and ownership. Nevada has no state corporate income tax, personal income tax, or franchise tax.

Where is the best place to start an anonymous LLC? ›

If we compare the anonymous LLC states on filing and maintenance costs, then New Mexico is the winner with one of the lowest LLC filing fees of $50 and no annual report required. If a business-friendly environment is your top priority, then Delaware would be the best state for you.

Which state is most LLC friendly? ›

While there are no specific laws that make it more suitable for LLCs than other states, Delaware is the state of choice to incorporate because of their business-friendly corporate tax laws. There's a reason why 66.8% of all Fortune 500 companies choose Delaware as their incorporation state.

Which states are anonymous in LLC? ›

If you're interested in registering a private LLC, you're limited to the states that will permit you to do so. As of May 2024, only four states: Delaware, Wyoming, New Mexico, and Nevada, allowed the formation and operation of anonymous LLCs.

Can you hide the owner of an LLC? ›

An anonymous LLC is a type of limited liability company that keeps the identity of its owners private. The public can't access the names and addresses of the members, who are also the owners. Many individuals and businesses decide to form anonymous LLCs to protect their privacy and safeguard assets.

Which state has the lowest taxes for an LLC? ›

Alaska tends to be a low-burden state for LLC taxes thanks to no sales taxes and no personal income taxes. Their property taxes are just a little higher than average, though. Likewise, Wyoming is generally favorable for no income taxes or other business taxes, but LLCs can still expect to owe property taxes.

Why is Delaware the best state to form an LLC? ›

Generally, if you want the strongest protection, you should form your LLC in Delaware. The Delaware LLC is easy to maintain and allows for members to choose how the LLC is taxed. Delaware's reputation of protecting business owners from creditors is widely known by businesses of all sizes.

How to keep LLC anonymous? ›

Many people ask, “How does the owner of the LLC remain anonymous?” The answer is by identifying itself as the organizer and registered agent, the only specific information contained within the Articles of Organization that is published by the State.

What is the best state for business privacy? ›

Nevada: The Silver State's Offer

Nevada is one of the best states to form an LLC in 2024 if you want privacy and asset protection. It is also known for its business-friendly environment, which makes it an ideal location for entrepreneurs and business owners.

Can you sue an anonymous LLC? ›

The anonymous LLC's registered agent or other third-party person or company that does business with the LLC may be required to expose the LLC's owner's personal information if subpoenaed by a court or government agencies. The LLC's ownership may be disclosed to various parties if the business is targeted in a lawsuit.

What is the most expensive state to form an LLC? ›

The filing fee is state specific with the lowest cost being $40 (in Kentucky) and the most expensive cost being $500 (in Massachusetts). Most states' filing fees hover between $50 and $100.

What states are best to form an LLC for asset protection? ›

Similar to LLCs conducting any other kind of business, Delaware, Wyoming and Nevada are all considered friendly to those looking to get into real estate. Their strong asset protection laws, privacy protections and low taxes make them top considerations for high-profile real estate purchases.

Does it matter what state your LLC is in? ›

Overall, the state in which you decide to form your LLC matters because each state has different laws and tax benefits. Picking the incorrect state – or incorrectly forming your LLC – could be detrimental to the lifespan of your business.

What states protect single member LLC? ›

In the case of a single-member LLC, that rationale cannot justify the protection. In fact, only a handful of states provide charging order protection for single-member LLCs: Alaska, Delaware, South Dakota, Nevada and Wyoming.

Why is Wyoming the best state for an LLC? ›

Wyoming has LLC privacy and does not require the members or managers to be listed on the public records. Wyoming has no income taxes on companies or people. Wyoming has close LLCs which do not require annual meetings, so there is less paperwork.

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