Forming an Anonymous LLC

[Joseph S.]

I have read about forming anonymous LLC's and am interested in this topic. I am most interested because of the extra protection it gives my family and I. Has anyone formed an anonymous LLC as it's asset holding company? If so what state did you use and who did you use to file the paperwork? If I file an LLC in another state I assume I have to file paperwork in my state that allows me to do business in that state? Thank you for any help.

[Don Konipol]

@Joseph S.

The Problem with “anonymous” entities, is the same as the problem with offshore asset protection trusts, undisclosed foreign bank accounts, “straw” owners, etc. while they can and do throw the run of the mill asset finder off the track, when you accumulate some degree of wealth you will be dragged into court should a lawsuit arise. At that time you will either have to disclose all your assets and any entities you have any control over, or be willing to commit perjury. IMO much better to use asset protection programs that utilize current laws. Almost all retirement plans are protected against creditor attachment; many including myself have found ways to legally place millions of dollars of real estate, notes, and business assets into Self directed IRAs, Solo 401ks, SEP accounts, and Defined Benefit Plans. In many states annuities and whole life insurance are assets exempt from creditor attachment. In Texas and Florida your homestead is a fully exempt asset (as long as you owned a home in said state for 39 months). It’s possible to organize your affairs over a number of years so that you are able to place $10 million beyond the grasp of creditors, or judgements. Basically the assets going into credit proof “packages” are owned free and clear, the assets you hold outside of these credit proof packages are highly leveraged.

That being said I do know people who hid assets so well that they never showed up in their name. However, the way the financial system is structured today, whenever you apply for a loan, or credit of any kind, you sign an affidavit that you have disclosed a true financial picture. So to keep an anonymous entity anonymous you would either have to only borrow money from lenders who don’t require a financial statement, or live on a cash basis, or being willing to “fib”.