Setting up an LLC involves some exposure of your business information, but understanding what is shared can help you take steps to protect your privacy. In general, the degree of privacy protection you can achieve will depend on your specific state's laws and your willingness to invest in privacy-enhancing measures.
Understanding these details can help you make informed decisions about setting up and managing your LLC.
What Goes Public?
When you form an LLC, certain information must be filed with the state. Here's what typically goes on public record:
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Formation Documents: Your LLC's Articles of Organization or Certificate of Formation are public. This includes details like your LLC’s name, and the name and address of your registered agent. Sometimes, it might also include the names of your LLC’s members or managers.
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Registered Agent Info: The name and address of your registered agent are public, which can lead to unwanted mail or privacy concerns, especially if the agent uses a personal address.
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Member or Manager Details: Some states require you to list who manages and owns the LLC. If keeping your involvement private is important, this could be a consideration.
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Business Address: If you use a home address as your business address, this can also become public, potentially affecting your personal privacy.
The Corporate Transparency Act
Effective January 1, 2024, the Corporate Transparency Act (CTA) will require all legal entities to report certain details about their owners and controlling persons to FinCEN. This is a move to enhance transparency and combat financial crimes. However, it's important to note that these reports are not public and are tightly controlled for privacy.
Dealing With Public Information
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Consider Your State: Some states offer more privacy than others. If privacy is a major concern, you might consider forming your LLC in a state known for protecting personal information.
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Third-Party Registered Agents: Using a third-party service for your registered agent can keep your personal address out of the public eye and reduce direct solicitations.
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Public Filings: Be mindful that annual reports and other filings can become public. While these documents are not as accessible as formation documents, they can still be requested by the public.
Watch Out for Solicitations
With your information being publicly accessible, your LLC might receive marketing materials, junk mail, and unfortunately, sometimes even scams. Being aware of this can help you better manage and filter out unwanted communications.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.