Do Anonymous LLCs Still Work in 2025?
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Contents
- What is an Anonymous LLC?
- How is it different than a "Regular" LLC?
- Major Update: A Dramatic Shift for Anonymous LLCs
- "What? But I've read all over about these Anonymous LLCs?!"
- The Reality of Anonymous LLCs in 2025
- Advantages and Disadvantages of an Anonymous LLC
- What About the Four States That Allow Anonymous LLCs?
- Delaware
- Nevada
- Wyoming
- New Mexico
- A Better Alternative to an Anonymous LLC?
- Frequently Asked Questions
Not too long ago, a long-term reader came to me asking if an Anonymous LLC would work for him.
In the last year, a professional criminal organization had tried to steal his Texas property not once, but twice.
Only through the keen eye of someone at the bank was the plot foiled. But, understandably, the reader – now a client – didn’t want to take the chance again.
After the first attempt, he tried working through the regular ways. He bought the “fraud monitoring services” that didn’t actually protect against a real threat. But he soon realized that they weren’t good enough.
So – using Anonymous LLCs – he worked with us to build a structure that properly protected his property.
If you’re wondering whether an Anonymous LLC might be right for you, this article will separate truth from fiction and give you an unbiased look into how these things actually work in practice.
You’ll learn:
- The truth about Anonymous LLCs in today’s America.
- The advantages and disadvantages of this structure.
- What’s happening to the places that have offered Anonymous LLCs (specifically Nevada, Wyoming, Delaware, and New Mexico).
- What people are really looking for when they shop for an Anonymous LLC… and how to get it.
What is an Anonymous LLC?
An Anonymous Limited Liability Company or Anonymous LLC for short, is a business entity where the names and contact information of the owners (aka members) are either kept private by law or not even known.
People often set them up as a way to try and preserve privacy. Because of the way the world works nowadays, it hasn’t really been truly anonymous for a while now, but that’s the goal.
How is it different than a "Regular" LLC?
There is no legal difference. Rather, it’s about the respect for privacy according to the rules and regulations in certain states. Some states have worked hard to be known as a private place to do business.
Others — like California, New York, or Massachusetts — are fiercely “anti-private” and very unattractive for people looking for discretion in their business dealings.
Major Update: A Dramatic Shift for Anonymous LLCs
In the last few years, we almost lost the right to create Anonymous LLCs that were truly anonymous.
On January 1, 2024, a law called the Corporate Transparency Act (CTA) came into effect. It would have made Anonymous LLCs in the US a thing of the past by requiring the owners of a US company to file a Beneficial Owner Report with the federal government.
Over the next year and into 2025, the courts, lawmakers and the president got involved.
Eventually, as of March 21, 2025, the CTA has been dramatically scaled back. It now only applies to foreigners with US companies.
This reversal means that Anonymous LLCs in states like Wyoming, Nevada, Delaware, and New Mexico have regained much of their privacy advantage. While these structures must still comply with other federal and state regulations, the removal of the BOI reporting requirement restores a significant level of privacy for US business owners.
For more details, you can view FinCEN’s official announcement.
"What? But I've read all over about these Anonymous LLCs?!"
Online information about Anonymous LLCs can be outdated or simply incorrect. Many websites fail to keep pace with the rapidly changing regulatory environment.
If the facts are important to you, work with someone who puts the time and effort into keeping up to date with the latest developments. There are some good resources out there, but they’re not always easy to find.
That’s also something we offer through our Private Wealth planning service. If you’re interested in discussing your case, please book a consultation with a Nestmann Associate.)
The Reality of Anonymous LLCs in 2025
With the recent change to the Corporate Transparency Act, Anonymous LLCs have regained much of their privacy advantage for US business owners. But how effective are they for asset protection?
That’s a bigger question, and it requires us to look at the topic of risk.
When we build a client’s plan, we look at (among many other things) two types of risk — private and public.
Private risk is the risk from things like lawsuits. Public risk is the risk from a government — civil forfeiture, regulatory issues, tax issues, eminent domain issues, passport seizure and so on.
Different clients have different risk profiles. We’ve had clients who’ve had to deal with public risk issues. But on strict numbers basis, lawsuit exposure is a much bigger daily threat.
And of course, “Anonymous LLCs” are still very useful against private risk.
Our Recommendation — It’s not prudent to build an asset protection plan on privacy alone. Instead, you need to build a plan backed by laws that protect your assets and use privacy to make yourself less of a target in the first place.
Advantages and Disadvantages of an Anonymous LLC
- Enhanced privacy: Your identity can remain private from public records, protecting you from prying eyes.
- Strong asset protection: Specifically, in two ways. First, LLCs have built-in asset protection if structured properly. Second, the privacy aspect makes you less of a target in the first place.
- Easy to form: They are very easy to set up, especially in states like Wyoming and New Mexico.
However, these are balanced by some disadvantages:
- Banking challenges: Banks will still require KYC (Know Your Customer) compliance, making truly anonymous banking difficult.
- More expensive than going on your own: Keeping an Anonymous LLC actually anonymous requires you to use various services to fulfill certain minimum requirements without giving away your identity. These fees add up.
- Issues in other states: Plenty of other states refuse to recognize your anonymity. This makes doing business across states more difficult.
- Perception problems: For people who don’t appreciate the power of privacy, anonymous entities could be viewed with suspicion when trying to do business.
For those reasons, although we like the idea of Anonymous LLCs, they aren’t terribly practical for everyone. There are other structures that might better preserve your privacy depending on your situation. Contact us to see how this might apply to your specialized situation.
The Nestmann Group Ltd was actually incorporated in an Anonymous LLC state — Nevada. However, it wasn’t because of the anonymity. Rather, it’s because Nevada checked the boxes on other things important to us.
What About the Four States That Allow Anonymous LLCs?
Four states have historically offered Anonymous LLCs to varying degrees: Delaware, Nevada, Wyoming, and New Mexico. These states have now regained their appeal for privacy-conscious business owners thanks to the March 2025 update.
Here’s what makes them so popular:
Delaware:
- Minimal Disclosure: You don’t need to list the names or addresses of members or managers in public records. Only the registered agent’s information is required.
- Annual Report Filings: You don’t need to file annual reports that disclose ownership or management details.
- Registered Agents: LLCs can be formed by agents or through nominee services. This hides the true owners’ identities.
- Strong Historical Support for Privacy: Delaware’s legal system has a long history of privacy when it comes to business.
- Private Operating Agreements: LLC Operating Agreements are not filed with the state. This helps keep the ownership and management structure private.
- Private Company Books and Records: Access to LLC books and records are available only to members or authorized representatives.
- Private Control Details: Delaware LLCs can be manager-managed or member-managed. This further offers privacy to those in control.
- Attorney-Client Privilege: Working with Delaware attorneys adds a layer of privacy thanks to attorney-client privilege.
Nevada:
- Minimal Disclosure: You don’t need to list the names or addresses of members in public records. Only an “authorized signer’s” information is required.
- Annual Requirements: You must file an annual list of managers or managing members, but the names of the owners (members) do not need to be disclosed in public records.
- Formation Flexibility: LLCs can be formed by agents or through nominee services. This hides the true owners’ identities.
- Strong Privacy Protections: Nevada’s legal system supports strong privacy protections for business entities.
- Operating Agreements: LLC Operating Agreements are not filed with the state. This helps keep the ownership and management structure private.
- Book and Record Access: Access to LLC books and records is available only to members or authorized representatives.
- Management Flexibility: Nevada LLCs can be manager-managed or member-managed. This further offers privacy to those in control.
- Attorney-Client Privilege: Working with Nevada attorneys adds a layer of privacy thanks to attorney-client privilege.
Wyoming:
- Minimal Disclosure Requirements: You don’t need to list the names or addresses of members or managers in public records. Only the registered agent’s information is required.
- Annual Reports Required: You need to file annual reports, but they do not require the disclosure of ownership details.
- Formation by Agents or Nominees: LLCs can be formed by agents or through nominee services. This hides the true owners’ identities.
- Strong Legal Privacy Protections: Wyoming’s legal system strongly supports privacy for business entities.
- Non-Public Operating Agreements: LLC Operating Agreements are not filed with the state. This helps keep the ownership and management structure private.
- Private Access to Books and Records: Access to LLC books and records is available only to members or authorized representatives.
- Flexible Management Structures: Wyoming LLCs can be manager-managed or member-managed. This further offers privacy to those in control.
- Attorney-Client Privilege: Working with Wyoming attorneys adds a layer of privacy thanks to attorney-client privilege.
Wyoming LLCs: A Step-by-Step Guide from the Field
Wondering if a Wyoming LLC will fit into your plan? Here’s a field guide on how to use them best — whether in the US or to hold international assets.
Click here for more information: Wyoming LLC.
New Mexico:
- Minimal Disclosure Requirements: You don’t need to list the names or addresses of members or managers in public records. Only the registered agent’s information is required.
- No Annual Reports: You don’t need to file annual reports that disclose ownership or management details.
- Formation by Agents or Nominees: LLCs can be formed by agents or through nominee services. This hides the true owners’ identities.
- Strong Legal Privacy Protections: New Mexico’s legal system supports strong privacy protections for business entities.
- Non-Public Operating Agreements: LLC Operating Agreements are not filed with the state. This helps keep the ownership and management structure private.
- Private Access to Books and Records: Access to LLC books and records is available only to members or authorized representatives.
- Flexible Management Structures: New Mexico LLCs can be manager-managed or member-managed. This further offers privacy to those in control.
- Attorney-Client Privilege: Working with New Mexico attorneys adds a layer of privacy thanks to attorney-client privilege.
A Better Alternative to an Anonymous LLC?
Even with the recent changes to the CTA, privacy-focused business structures should be part of a comprehensive plan.
That’s something that we’ve been helping clients with for decades now. And the first thing I need to say on that is: It needs to fit into the larger plan.
Good planning is about being clear on your goals, your risk exposure, and your unique situation.
Anonymous LLCs are just a tool, and they need to be considered alongside others. Here are some things to consider:
Trusts
Structured the right way, a trust can offer you a lot of asset protection and be very private in the process. In fact, a trust can be AS private as a classic Anonymous LLC.
"Regular" LLC
Depending on your needs, a “regular” LLC in a privacy focused state might give you the best mix of privacy and asset protection. In addition to Wyoming, Nevada, New Mexico, and Delaware, there are other states that offer a good mix including Alaska and South Dakota. It really depends on your needs.
Frequently Asked Questions
What is an Anonymous LLC?
An Anonymous LLC is a type of Limited Liability Company that allows owners (aka members) to keep their identities private from the public and sometimes even from the state. US-based Anonymous LLCs have now regained much of their privacy appeal, as US companies are no longer required to report beneficial ownership information to FinCEN as of March 2025.
What states allow Anonymous LLCs?
Delaware, Nevada, Wyoming, and New Mexico are the states best known for offering robust privacy protections for LLCs. With the recent changes to the Corporate Transparency Act removing reporting requirements for US entities, these states have regained their appeal for privacy-conscious business owners.
Does the Corporate Transparency Act still affect Anonymous LLCs?
As of March 21, 2025, the Corporate Transparency Act no longer requires US companies or US persons to report beneficial ownership information to FinCEN. The reporting requirement now only applies to foreign entities registered to do business in the US. This change has reinstated much of the privacy advantage that Anonymous LLCs previously enjoyed.
How to set up an Anonymous LLC?
Setting up an Anonymous LLC involves choosing a privacy-friendly state like Wyoming, Nevada, Delaware, or New Mexico, and working with a registered agent service. To maximize privacy, you may want to use services like nominee directors, third-party mailing and telephone services, and professional registered agents.
Is it still possible to set up an Anonymous LLC offshore?
Yes, but there are important reporting considerations for US persons. The vast majority of overseas entities — including offshore LLCs — are subject to reporting to US authorities. So although certain jurisdictions like Nevis and Belize offer extremely private structures, US persons still need to declare them on relevant tax and compliance forms.
How you do this depends on how the entity is classified for tax purposes by the IRS. For instance, if it falls under the Controlled Foreign Corporation (CFC) rules, it must be disclosed as a CFC, among other requirements.
What's the best way to benefit from Anonymous LLC-type structures?
A tool like an Anonymous LLC, a “regular” LLC, or a trust, is only as good as the plan it fits into. If you’re wondering how to fit this strategy into your plan, consider booking a consultation with one of our Associates to discuss your case. You can do so here.
About The Author
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We have 40+ years experience helping Americans move, live and invest internationally…
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We have 40+ years experience helping Americans move, live and invest internationally…
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