A few weeks ago I wrote about some new reporting LLC rules and how the headline for the changes was “anonymous LLCs go away” but the fact is not much is changing from the current reporting requirements.

In that message I hinted at a way to create a truly anonymous LLC and then never followed up.

Well, a few of you reached out asking about that, so I thought I’d break it down here real quick.

You ready?

Let’s go.

First, quickly, there are two types of LLCs – member managed and manager managed.

Members are “owners.”

Managers are, well, managers (officers/employees of the LLC).

In our scenario we want to create a manager managed LLC.

You will be the manager.

Before you create the LLC you are going to create an irrevocable trust.

In this specific example, I’d likely use a corporate trustee of some sort – a law firm or trust company. You could use an individual if you want – but we’re going for faceless in this example.

So, you create your irrevocable trust, naming a corporate trustee to run it.

Once the trust exists, the trustee is going to create an LLC that is manager managed.

The trust is the owner of the LLC and you are manager.

The manager runs the business, makes distributions, and really has complete authority over the business.

The trust, though, technically owns it.

And when you look it up, you’ve created an LLC that, if you search the ownership records shows the corporate entity as the owner the LLC and you are NO WHERE to be found.

Make sense?

Perfect.

NOTE – please don’t do something like this without getting help. I made it sound easy but there are some VERY specific things you want to make sure you do to make sure everything works the way you want it to.

Have a great week!

Cheers,

Christopher Small
CMS Law Firm LLC

PS – don’t keep this estate planning stuff to yourself – you know it’s important and we LOVE referrals!