The Importance of Anonymity for Your LLC

The Importance of Anonymity for Your LLC

  Most investors are unaware an LLC can be set up without the investor’s personal information publicly disclosed to anyone with access to a computer.  A key component of creating an asset protection shield is to maintain a veil of privacy around your assets.  Its common sense that if you appear worthless, a creditor will be forced to weigh the options of bringing a claim because the possibility of recovery is highly suspect. Unfortunately, most real estate investors and professionals who establish LLCs either do not know how to create an LLC without the investor’s information being publicly exposed or downplay the importance of anonymity in planning.  (I believe the latter is a direct result of a professional not understanding how to create the former.)  When an LLC is organized, the organizer must select between a manager-managed, or member managed LLC.  With either LLC form, 45 states require the LLC organizer disclose the LLCs manager(s) or member(s).  This information is publicly available because on the state’s secretary of state website. How important is anonymity?  Very!  Consider a recent situation involving a real estate investor in California who I will refer to as John. Five years ago John established a California

Where to Create your Real Estate LLC

Where to Create your Real Estate LLC

So You Want to Start a Business. Where Do You Begin? This isn’t a figurative question: one of the main things we get asked about is where—geographically speaking—an investor, who’s buying and selling real estate, should set up a business entity. What makes this question tricky is that there’s no single correct answer: the right … Continue reading Where to Create your Real Estate LLC