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Business

​​Is disclosure of the names of managers or owners of an LLC mandatory?

Introduction

LLCs or Limited Liability Companies all have to follow the specific rules and regulations of the state they are established in. Most of these states also require the names of the owners and/or managers of the LLC to keep track of its business and proceedings and trace their business if needed. However, some states allow LLCs to exist anonymously as an Anonymous Limited Liability Company.

What the terms mean

LLC

An LLC or Limited Liability Company is a business entity that is known for its flexibility and is permitted to exist in all the 50 states of the US. Because of their flexibility and low-cost and easy maintenance, small businesses usually crowd around these for the best benefits and maximum rewards.

They need to be registered through a Registered Agent and have to pertain to the state’s requirements. Additionally, as mentioned earlier, they also have to provide the names of their managers and owners to the State if asked for.

Anonymous LLC

An Anonymous Limited Liability Company is the same as a Regular LLC, except it is not required to provide the names of its owners or managers. These can only be established in states that allow for its anonymous existence and operation. Some of these states are Delaware, Nevada, New Mexico, and Wyoming.

How does it work

Usually, LLC agencies need to provide the state with the following information during its time of formation or registration:

  • Member names
  • Director names
  • Names of Managers
  • Their addresses

However, Anonymous LLCs can form their organizations by providing their organizer’s name, which can be a law firm or select a temporary nominee who will represent the company as its head. After the company’s formation, the nominee usually retires immediately after or after some time, and the real head takes over anonymously. This management change need not be recorded or updated to the state, and thus the manager’s or the owner’s identity remains secret.

Pros

Below are some of the basic and simple advantages of an Anonymous LLC:

  • Privacy protection of the owner
  • Harassment prevention for the staff and members
  • LLC tax benefits
  • Increased LLC flexibility
  • Increased survivability of the business
  • Allows business continuity in case of an unfortunate failure
  • Company protection

Cons

Below are some of the disadvantages of an Anonymous LLC:

  • Trust issues with clients, customers, and business partners
  • Drawing government suspicion
  • Difficult to guarantee 100% anonymity and privacy
  • The IRS and banking services need to connect to a specific and real person, in which case anonymity may be lost

Conclusion

To answer the title question- it is a no. One need not disclose the names of members, managers, or owners of an LLC but only if the LLC is established and registered under a state that allows for the existence of Anonymous LLCs. An Anonymous Limited Liability Company specializes in keeping the identity of its owners, managers, and members secret and thus ensuring protection from dangerous entities and stalkers. If the business goes down, the company cannot be traced back to its owner, which is also a bonus in the current period.

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