maintaining privacy in lease agreement

[Rashid Khalil]

when renting a property owned by LLC or a Trust (to maintain privacy), who will sign on behalf of the landlord, (manager or trustee). the signor will have to disclose their name (Me) which will blow the anonymity

I made my Trust sign a management agreement with My LLC but then when i signed as manager of LLC on lease that exposed me again

To me seems like the only way is to have 3rd third-party PM contracted which then signs the lease with Tenant, but that is a lot of money wasted every month   

any thoughts and ideas is appreciated 

[Savannah Wallace]

When signing documents in a representative capacity, such as for an LLC or trust, remember that you are acting on behalf of the entity and not as an individual. This distinction helps with maintaining the separation between your personal and business assets.

While using an LLC or trust can effectively keep your name off public documents like property deeds and filings with the Secretary of State, it may still appear in private agreements, such as lease agreements.

However, there are strategies to mitigate this exposure. For instance, the management agreement between your LLC and your trust is not publicly filed. Although the lease agreement will likely include your name as the LLC's manager, it won't explicitly state that you are the property owner. Moreover, if the LLC is solely used for management purposes and doesn't hold any significant assets, it becomes a less attractive target for lawsuits.

To strengthen your protection, consider assigning the beneficial interest of the trust to another LLC. In most jurisdictions, trusts themselves do not offer asset protection; they primarily serve as a smokescreen, keeping your name off public records. By assigning the beneficial interest to an LLC, you can leverage the liability protection that the LLC provides. In the event of a lawsuit from a tenant, only the assets within the LLC would be at risk, safeguarding your personal assets and other holdings, as long as the corporate veil remains intact. Additionally, maintaining insurance coverage on the property can further reduce the likelihood of the LLC's assets being used to satisfy a judgment.

If you're looking for complete anonymity and do not want your name to appear on any agreements, hiring a third-party property management company is an option. However, by implementing the appropriate entity structure, you can still achieve asset protection while retaining some control over your property and avoiding additional costs.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, or financial advice. No attorney-client, fiduciary, or professional relationship is established through this communication.