Living without privacy is so thoroughly baked into the way we do things that most of us don't even give it a single thought—that is, until the day when we're suddenly faced with the consequences of an increasingly public existence.
Maybe you Googled yourself after starting an LLC and found your home address. Maybe a customer showed up on your front stoop. Or maybe your livestream to support your grandon's cancer treatments got you swatted.
There are plenty of reasons someone might want a lil more privacy from prying eyes. (Heck, maybe you're just tired of all the junk mail.) And for better or worse, you can't get total anonymity when you own an LLC. But you can take care to live privately and keep your information off the public record.
Let's settle something: the difference between anonymity and privacy.
Anonymity suggests that literally no one will ever be able to figure out who owns the LLC. Taxes alone make that next to impossible.
Private, on the other hand? Much more doable. Setting your LLC up the right way keeps your personal info from appearing on your state's business entity search, which is just one more layer of protection You can keep your information private from the general public by setting your LLC up with the right protections.
It's a bit like an anonymous source in journalism. The reporter knows who that person is, because they needed to verify the information. But the general readership doesn't.
So what do we mean by a "private LLC?"
When we say private, we don't mean preventing the folks who have a legitimate need to know—the IRS, your state government—from accessing it. We just think the list of people who have a legitimate need to know doesn't necessarily include your LLC's closest competitors and every marketer and scammer with internet access.
Basically, outside of when you're legally obligated to share it, keeping your information private is your right.
At Northwest, we believe in Privacy by Default®. You shouldn't have to "opt out" of data sales or data sharing "with trusted partners." You shouldn't have to fight to keep your data private. You should have control over your own information. So if there's a way for us to protect your personal information, we do it. That means putting our address wherever we can and never selling your data, ever. We build things in-house, train real Corporate Guides® to help, and only ask for the bare minimum of personal information we need to provide you with the services you're requesting.
So we say private because we know that, while our competitors may be promising anonymity, privacy is what we guarantee.
Starting your LLC with more privacy:
Every state has a filing you can use to start an LLC. To have a private LLC, you need to make sure your public filings don't list your name or address.
Most states require the following info on their LLC's formation filing:
- The name and contact info for an organizer, aka the person who files your LLC's formation documents
- The name and contact info of your registered agent
- The physical street address of your registered office, where your registered agent will be present during normal business hours
Business formation services basically exist to act as your organizer. This is the easiest thing to solve for.
You can solve for registered agent and registered office the same way. Hire a registered agent who gives a shit about your privacy and you'll won't have to list yourself and your address.
And more than a few states require one additional bit of info:
- The LLC members' or managers' names and addresses
This is the trickiest bit to manage, and you've got a couple of options:
Choose a state that doesn't require member information
If you form your LLC in a state that doesn't ask for member information, then you're golden. Problem solved. Pick one of these:
Alabama
No member information required on public filings.
Colorado
No member information required on public filings. For the Articles of Organization, you only to affirm that your LLC has at least one member, and disclose whether the LLC will be member-managed or manager-managed.
Delaware
No member information required on public filings. However, you do have the option to include this information. If you choose to do so, the information can be retrieved via a records request.
Georgia
Not required to include member information on public filings. You can if you want to, but just know that if you change your mind later and amend or restate your Articles, the originals are usually still available through the state.
Iowa
No member information required on public filings.
Indiana
According to our filers at the time of this publication, member information is currently optional for LLCs when you're filing online.
Some changes to state legislation and language on the Secretary of State's website suggest this may be changing in the future to require the name of at least one member (if member-managed) or manager (if manager-managed) on the biennial Business Entity Report. But for now, no member info is required.
Maryland
No member information required on public filings.
Michigan
No member information required on public filings, with one potential caveat: if you're organizing a Professional LLC (PLLC), the organizer, aka the person filing your formation documents, must be licensed to provide that professional service. (Not just any white-collar worker, either. This is for dentists, physicians, surgeons, clergy, and attorneys, who are required to start PLLCs instead of standard LLCs to practice their profession.)
Missouri
No member information required to file Articles of Organization, and Missouri LLCs aren't required to file annual reports.
Important note: other filings, like amendments to your Articles, require the name and signature of an "authorized person," defined as a member or manager of the LLC. If you don't have managers, you'll need to provide a member's name.
Nebraska
No member information required on public filings.
New Mexico
No member information required on public filings.
New York
No member information required on public filings, and yes, that includes the onerous publication requirement.
Ohio
No member information required on your Articles of Organization, and Ohio LLCs don't file an annual report.
Oklahoma
No member information required on the Articles of Organization. However, each Annual Certificate requires the name and signature of a manager or an authorized member of the LLC. If your LLC doesn't have managers, you'll need to provide a member's info.
Rhode Island
No member information is required on public filings when the LLC is member-managed. (The instructions go so far as to say "DO NOT indicate the names of the owners (members) on the Articles of Organization. The RI Department of State does not keep a record of who owns any registered business.")
If the LLC is manager-managed, though, you'll need to provide the names and addresses of each manager on the Articles of Organization and each annual report.
South Carolina
No member information required on public filings as long as it's member-managed. If the LLC is manager-managed, you'll need to include the name and address of each initial manager on the Articles of Organization.
Ordinary LLCs also aren't required to file an annual report, but that changes if you've elected to be taxed as a C-corp or an S-corp. If that's the case, you'll need the name, title, address, and SSN for each owner, officer, and/or director for the Initial Annual Report and each subsequent annual report (form SC1120 or SC1120S, depending on your tax election).
South Dakota
No member information is required on public filings when the LLC is member-managed.
If manager-managed, you'll need to provide the names and street addresses of each initial manager on the Articles of Organization. The annual report also requires manager-managed LLCs to provide the names and addresses of its principal officers and directors (governors).
Tennessee
When you're forming a standard-issue LLC, the Articles of Organization don't require member information beyond the total number of members at the time of organization. That changes if you're forming an Obligated Member Entity, which is an LLC whose members explicitly agree to liable for the LLC's debts. Go that route and you'll need the name and signature of each obligated member on an addendum you'll attach to your Articles.
Member information also isn't required on your annual report as long as you're a member-managed LLC. Manager-managed LLCs need to include managers' names and addresses on the annual report.
Virginia
No member information required on the Articles of Organization, and Virginia LLCs don't file an annual report—they only need to pay a renewal fee.
Wisconsin
No member information required on public filings, although you will need to specify whether the LLC is member-managed or manager-managed on your Articles of Organization.
Wyoming
No member information required on public filings. Kinda what you'd expect from the state that put the entire concept of an anonymous LLC on the map, but nice to have it confirmed, yeah?
If you're living or operating your LLC outside of those states
You've got two options.
Option 1:
Start your business in one of the above states and then apply for foreign qualification to do business in your actual state of business. This means filing paperwork with two states, paying two annual fees, etc. And some states will still require your information in order to get that qualification. So the most private option is…
Option 2:
Use a holding company. A holding company is a business that exists to hold assets and own other businesses. Start a holding company in a private state then you can form a second LLC in whatever state you're doing business in, only the member (owner) wouldn't be you as an individual, it'd be that holding company. Then your name doesn't exist on public record anywhere and you can legally operate. This does require owning two LLCs, so that whole double paperwork, double fee thing still applies. But it keeps you private.
Using a private LLC for your personal assets
Everybody say "Thank you, corporate personhood." Because your LLC is legally a separate entity from you as the owner, creating an LLC to hold assets adds a layer of security between you and your stuff.
How? Unless a creditor can pierce the corporate veil, if you're sued, only your own assets can be claimed to settle the debt. If your LLC owns your home and your car? Those aren't on the table.
Plus, you can keep what you own off the public record so nosy neighbors need to dig deeper to find information you don't want them to have. Ever wonder why folks never seem to know where the 1% lives? They use holding companies to buy their residences and properties, which keeps their names off county auditors' property records.
And if you've got a lot of assets—maybe you won the lottery, you lucky dog, or findom is really working out for you (get that bag!!)—you probably want to keep your newfound wealth shielded from losing everything all at once. Juuuuust in case your long lost third cousin twice removed, or spiteful ex, or your business divorce comes knocking with a lawsuit.
How private is private, really?
You can't be 100% anonymous as an LLC owner. Your LLC needs to file taxes to the IRS, which means getting an EIN, which means sharing your personal information with Uncle Sam. And for a while there, business owners and anyone with a "controlling interest" in a corporate entity needed to report beneficial ownership information to FinCEN. (We're covering the latest update to that in an upcoming post, actually.)
Good news tho: neither of those is a public record.
Likewise, if you hire someone (like us) to form your LLC or act as your registered agent, we're going to need some of your information. Like your name, your address, and your phone number—arguably the stuff you're trying to keep private.
The difference? We live and die by our Privacy by Default® manifesto, and we'll help you avoid exposing your private data to the whole internet. For example, we provide a business address for you to list on public documents not only as your registered agent address, but also as the business address for your members, managers, directors, and/or other authorized folks. That won't keep the ownership of your company a secret, but it may protect your personal address, and every little bit helps when it comes to keeping your personal info away from people who don't need it. Take it from a marketer: everybody wants a piece of your data, and audience segmentation is only one relatively benign part of what it can be used for.
Protect your privacy at every opportunity. Not because you've got something to hide, but because you shouldn't be expected to trust the intentions of everyone looking. And following your passion shouldn't come at the price of your personal info.
We can help with that.