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Maintaining Anonymity with a Texas LLC

A large blue map of Texas positioned behind a stack of white business documents.

When you start an LLC in Texas, you’ll need to list all members’ names and addresses on the Certificate of Formation, and this information will be made public online. This can be a big cause for concern for Texas business owners worried about privacy. However, while it’s difficult to have total anonymity as a Texas LLC owner, there are ways to minimize the information you share publicly. We’ll explain your options for protecting your privacy with a Texas LLC.

Can You Have an Anonymous Texas LLC?

The short answer is: No. Anonymous LLCs are only possible in states where businesses aren’t required to list information about their members/owners on public documents like the Certificate of Formation (called Articles of Organization in some states). Texas does require all initial owners’ names and mailing addresses to be listed on the TX Certificate of Formation, unless you have a manager-managed LLC, in which case the LLC managers’ names and addresses must be listed instead. Owner or manager information is also required on the Public Information Report, which is filed as part of the Texas Annual Franchise Tax Return.

In a manager-managed LLC, the LLC owners hire an outside person (or people) to manage the daily operations of the business. One option for keeping your own name off the Certificate of Formation is to structure your LLC as manager-managed and hire an LLC manager who doesn’t mind putting their name and address on the public record. However, by naming someone as your LLC’s manager, you’re giving them decision-making power in the business, and you’d need to pay them a salary as well.

If you don’t want to make your LLC manager-managed, there are some other ways to have greater privacy with a Texas LLC.

Tip: Whether you’re ready to start your LLC today or need time to work out the details, Northwest can help. Get a free account with Northwest to access the resources you’ll need to start your business on your own, or hire us to do it for you. No obligations.

LLC-owned LLCs

The only way to have total anonymity as a Texas LLC owner—which should only be attempted with the help of a good business lawyer—is to start an LLC in a state that does allow anonymous LLCs and then make that LLC the owner of your Texas LLC. In this case, you can keep personal information off the public record entirely because instead of putting your name and address on the Certificate of Formation, you can put the out-of-state LLC’s name and address on the form. However, this is legally complicated and can constitute fraud if not done properly, so it’s very important to get help from a lawyer if you want to go this route.

Learn more about LLC-owned LLCs.

What are the best states for anonymous LLCs?

Currently, the best states for anonymous LLCs are Delaware, Wyoming, New Mexico, and Nevada. In these states, you aren’t required to share owners’ names or addresses on your LLC formation documents or annual/biennial report.

Find out how to live privately with an LLC.

How to Have More Privacy with a Texas LLC

Although it’s difficult to keep all of your information off the public record in Texas, you can at least keep your personal address private by hiring a Texas registered agent. Texas allows business owners to serve as their own registered agent, but if you do so, you’ll need to list your Texas street address (not a PO box) on the public record and be present at this address during normal business hours to accept service of process. It’s pretty much impossible to maintain your privacy as a business owner if you serve as your own registered agent.

When you hire Northwest as your registered agent, we let you use our address on public documents instead of your own wherever applicable.

For a business address you can use everywhere without jeopardizing your privacy, consider getting a Texas virtual office. When you sign up for a virtual office with Northwest, phone service, digital and physical mail forwarding, and an office lease and suite number are all included.

This entry was posted in Opinion.