Asset Protection
Privacy Companies & LLCs.
If they can’t find it, they can’t easily reach it. Privacy companies keep your name off the public record and make your holdings far harder for a plaintiff’s attorney to discover.
Baseless lawsuits seem to proliferate the legal landscape, and in today’s increasingly connected world a plaintiff’s attorney can find assets with just the click of a button. Privacy companies add a layer of protection around all that you have built, a plaintiff’s attorney would have to work very hard to discover your business entities and the assets they hold.
Which states protect ownership privacy
Certain states let you create entities that provide privacy. Nevada, Wyoming, and Delaware keep entity ownership private and do not publicly disclose the identities of company shareholders or LLC members. Wyoming and Delaware go a step further and do not disclose corporate directors or LLC managers, the public record reveals only the name of the resident agent. Nevada is one of the few states that consistently refuses to disclose information to the IRS, though you must still provide the IRS with the name and Social Security number of an individual responsible for the entity’s tax issues; Wyoming shares information with the IRS only when real property is involved. (Choosing a home state also means knowing where not to incorporate.)
The California problem, and the fix
In most cases a business must register in any state where it does business. So if you own rental real estate in California, you have to register your entity in California, and because California requires public disclosure of company ownership or management, extra steps are needed to protect privacy. The key is to name another entity as the manager or director of the California entity.
Privacy trusts have long been used to hold companies and give privacy to their owners. A privacy trust uses a “title trustee” who signs on behalf of the LLC rather than any of the active members, keeping the business owner’s name out of the public record as a member or manager. Another option is to form an entity in a state like Wyoming and name that entity as the manager of the California company, so the California public record shows only the Wyoming entity as manager.
When formation or corporate compliance is part of the plan, our affiliated Tresp Corporate Services handles entity formation, registered-agent service, and corporate compliance in all 50 states, corporate paper and compliance only, never legal advice, while our attorneys handle the legal strategy. We explain the why; they execute the how.
To discuss your situation with our attorneys, call (858) 755-6672 or request a consultation.
Common questions
Frequently asked
Which states offer the most privacy for LLC owners?
Wyoming, Nevada, and Delaware keep entity ownership off the public record. Wyoming and Delaware also keep managers and directors private, disclosing only the registered agent. Nevada is notably protective of information as well. The right choice depends on where you operate and what you own, and if you operate in a disclosure state like California, layering entities is usually the fix.
How do I keep my name private if I have to register in California?
California publicly discloses company ownership or management, so the common approach is to name another entity, often a Wyoming LLC, or a privacy trust with a title trustee as the manager or director of the California entity. That way the California record shows the other entity, not you. We structure this so it is done correctly.
This overview is general information, not legal or tax advice, and does not create an attorney-client relationship?
This overview is general information, not legal or tax advice, and does not create an attorney-client relationship. Every situation is different and the law changes; consult a qualified attorney about your circumstances.
This website is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Every situation is different; please consult a qualified attorney about your specific circumstances.
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