How to Form an Anonymous LLC in Tennessee | Protect Your Identity

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Form an Anonymous LLC in Tennessee

Starting a Limited Liability Company in Tennessee offers business owners flexibility, simplicity, and asset protection. In Tennessee, you can take the benefits of an LLC a step further by forming an anonymous LLC. An anonymous LLC lets you keep your personal information private, making it an attractive option for entrepreneurs who value privacy and asset protection. In this article, we will discuss the process of How to Form an Anonymous LLC in Tennessee and the benefits of doing so.

Webinarcare Editorial Team will help you form your Tennessee Anonymous LLC. You must be guided by all the factors gathered in this article.

How to Form an Anonymous LLC in Tennessee

What is an Anonymous LLC?

An anonymous LLC (Limited Liability Company) is a business entity that allows its owners or members to maintain a higher degree of privacy and anonymity. This is achieved by not disclosing the owners’ or members’ names or personal information on public records, such as registration documents or annual reports. Unlike a Limited Liability Company, an anonymous LLC aims to protect its members’ privacy and minimize the risk of personal lawsuits or unwanted attention. However, it is important to note that anonymity may be limited, as certain circumstances may require disclosing owner information, such as in legal disputes or compliance with regulatory requirements.

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Before you start creating an anonymous LLC, it is advised that you consult with a legal expert. They will be aware of what’s best for you and your business. You can always start an LLC in Tennessee if you wish to protect your personal assets from business debts.

– WEBINARCARE EDITORIAL TEAM

How to Form an Anonymous LLC in Tennessee

To form an Anonymous LLC for your business, you must follow the guidelines that include the choose a unique name for your anonymous LLC, hiring a Registered Agent, preparing and filing your Articles of Organization, obtaining an EIN, create an LLC operating agreement, obtain a business bank account, and maintain in compliance.

Step 1: Choose a Unique Name

The first step in forming an anonymous LLC in Tennessee is to select a unique name for your business. Ensure another company still needs to use the name by checking the Tennessee Secretary of State’s business name database.

There is a complete guide on Tennessee Business Name Search for you to have a proper LLC business name. Here are some of the regulations you must follow while naming your LLC.

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Tennessee, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 4 months. You must file a name reservation application in the Tennessee Secretary of State to keep the name.

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in two methods, by mail and in person. for an easier way.

However, before filing a DBA, you should know that you need to renew your DBA up to five years, which costs around Varies by county.

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Step 2: Hire a Registered Agent

To form an anonymous LLC in Tennessee, you must hire a Registered Agent. This is a third-party entity responsible for receiving official correspondence on behalf of your LLC. Your personal information remains private by using a Registered Agent.

It’s essential to choose a reliable and responsible Registered Agent, as failure to receive and respond to legal documents can have serious consequences for your anonymous LLC. Some businesses use Registered Agent Services to ensure compliance and proper handling of legal matters.

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Step 3: File the Articles of Organization

The Articles of Organization must be filed with the Tennessee Secretary of State to form your LLC officially. These documents will include basic information about your business, such as the name, purpose, and registered agent. Be sure not to include your personal information in these documents to maintain your anonymity.

Here are the guidelines and specific requirements in filing your Articles of Organization in Tennessee.

1. Obtain the Necessary Forms: Visit the Tennessee’s business filing office website, usually the Tennessee Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company“)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the Tennessee state office, either by mail, in person, or online. You may mail it at Corporate Filings, 312 Rosa L. Parks Avenue, 6th Floor, William R. Snodgrass Tower, Nashville, Tennessee 37243.

4. Pay the Filing Fee: When you submit your Articles of Organization, you’ll need to pay a filing fee of $300. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Articles of Organization have been filed and processed, you’ll receive a confirmation from Tennessee, typically a stamped and approved copy of the document.

Once you have successfully filed your Articles of Organization and it has been approved, your anonymous LLC is officially formed. However, remember to complete additional steps, such as obtaining an EIN, creating an operating agreement, opening a business bank account, and maintaining compliance.

Step 4: Obtain an Employer Identification Number (EIN)

An EIN is required to open a business bank account for tax purposes. You can apply for an EIN in Tennessee through the Internal Revenue Service website.

The application of an EIN in Tennessee can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Step 5: Create an Operating Agreement

Although not required by Tennessee law, creating an operating agreement in Tennessee for your anonymous LLC is recommended. This document outlines your business’s management structure, ownership interests, and operating procedures.

The operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

Step 6: Open a Business Bank Account

To keep your personal finances separate from your business, open a business bank account using your EIN and business name. Separate your personal and business finances by opening a dedicated bank account for your holding company. This separation helps preserve the limited liability protection offered by the LLC structure.

You can check out the Best Banks in Tennessee, which offers the best fees, services, and convenience for your business needs.

Step 7: Maintain Compliance

To keep your anonymous LLC in good standing, be sure to file Annual Reports and any required tax filings with the Tennessee Secretary of State and maintain a Registered Agent.

Benefits of an Anonymous LLC in Tennessee

Even though some people decide what to do with their businesses, important benefits will help you set up an anonymous LLC in Tennessee.

  • Privacy: By forming an anonymous LLC, your personal information, such as your name and address, will not be listed in public records. This can protect you from potential lawsuits, identity theft, and unwanted solicitations.
  • Asset Protection: An anonymous LLC can help protect your personal assets from creditors and lawsuits. Keeping your identity hidden makes it more difficult for potential litigants to target your personal assets.
  • Enhanced Business Image: An anonymous LLC can give the impression that your business is larger and more established than it is. This can be beneficial in attracting clients and investors.
  • Ease of Management: An anonymous LLC is typically easier to manage than other business structures, with fewer compliance requirements and formalities.

Difference Between an LLC and an Anonymous LLC in Tennessee

In Tennessee, when you form a regular LLC, you are required to disclose the names and addresses of the members (owners) and managers of the LLC. This information typically becomes part of the public record, meaning anyone can access it, and the owner’s association with the business is not private.

An anonymous LLC allows the owner(s) to keep their identity and personal information private. The formation documents for an anonymous LLC do not require the disclosure of the members’ names and addresses. Instead, a registered agent or nominee is listed on the formation documents as a buffer between the public record and the actual owner(s).

Why Does Forming an LLC Need to be Anonymous?

Forming an LLC does not necessarily need to be anonymous, but some business owners choose to create an anonymous LLC for various reasons:

  • Privacy Protection: An anonymous LLC helps protect the owner’s personal information and identity from being publicly accessible. Many business owners value their privacy and prefer to keep their involvement in certain business ventures confidential, especially if they have high-profile positions or are involved in multiple businesses.
  • Asset Protection: By keeping the ownership details private, an anonymous LLC can make it more difficult for potential creditors, litigants, or other parties to discover and target the owner’s personal assets in case of a lawsuit or debt collection.
  • Enhanced Business Reputation: In some cases, anonymity can help improve the reputation of a business. For example, if a business is involved in a controversial industry or the owner has a controversial past, keeping the ownership private can prevent negative publicity from affecting the business.
  • Easier to Attract Investors: An anonymous LLC can make it easier to attract investors who may be hesitant to invest in a company if they know the owner’s identity. Investors may focus more on the business opportunity than the owner’s history or background.
  • Reduced Identity Theft Risk: Creating an anonymous LLC can help protect the owner’s personal information from falling into the wrong hands, thus minimizing identity theft risk.

Are There Drawbacks in Forming an Anonymous LLC?

While forming an anonymous LLC can provide privacy benefits, there are potential drawbacks. These can include:

  • Limited Banking Options: Some banks may hesitate to open accounts for anonymous LLCs due to concerns about money laundering or other illicit activities.
  • Additional Costs: Forming and maintaining an anonymous LLC, especially in another state, can involve additional costs, such as registered agent fees and annual filing fees.
  • Potential Scrutiny: Anonymous LLCs may attract more attention from regulatory authorities as they can sometimes be associated with illicit activities.

FAQs

What is an anonymous LLC in Tennessee?
An anonymous LLC is an LLC whose ownership and management structure are not disclosed to the public or government.
Is Tennessee a good state to form an anonymous LLC?
Yes, Tennessee is a good state to form an anonymous LLC as it has relatively low LLC fees and allows for single-member LLCs.
What are the advantages of forming an anonymous LLC in Tennessee?
The advantages of forming an anonymous LLC in Tennessee include privacy, protection from personal liability, flexible management structure, and tax benefits.
What are the requirements for forming an anonymous LLC in Tennessee?
To form an anonymous LLC in Tennessee, you need to file articles of organization with the secretary of state, obtain an EIN from the IRS, and pay the required fees.
How much does it cost to form an anonymous LLC in Tennessee?
The cost of forming an anonymous LLC in Tennessee varies depending on factors such as filing fees and registered agent fees. It could cost as low as $300.
Can an anonymous LLC in Tennessee have a bank account?
Yes, an anonymous LLC in Tennessee can have a bank account, as long as it provides the necessary documentation to the bank.
How do I choose my anonymous LLC’s name in Tennessee?
You can check availability of your suggested LLC name before naming your LLC while registering it. It needs to conform to Tennessee’s naming guidelines.
Do I need a registered agent for my anonymous LLC in Tennessee?
Yes, an anonymous LLC in Tennessee is legally required to have a registered agent with a physical street address in the state.
Can I be my own registered agent for my anonymous LLC in Tennessee?
Yes, you can be your own registered agent for your anonymous LLC in Tennessee, provided you have a physical address in the state.
How do I maintain privacy for my anonymous LLC in Tennessee?
You can maintain privacy for your anonymous LLC in Tennessee by using a registered agent service, using a PO box address, and setting up a title-holding trust.
How do I file an annual report for my anonymous LLC in Tennessee?
You can file an annual report for your anonymous LLC in Tennessee online or by mail, following instructions provided by state government.
Can I change the name of my anonymous LLC in Tennessee?
Yes, you can change the name of your anonymous LLC in Tennessee by filing an amendment to your articles of organization that reflects new name and submitting it with required fees.
How do I dissolve my anonymous LLC in Tennessee?
You can dissolve your anonymous LLC in Tennessee by submitting a certificate of termination with the state and fulfilling other legal requirements, like making final tax filings.
Can I convert my LLC into anonymous LLC in Tennessee?
Yes, you can convert your LLC into an anonymous LLC in Tennessee. Legal guidance should be sought from an attorney when embarking these type of conversions.
How long does it take to form an anonymous LLC in Tennessee?
The time it takes to form an anonymous LLC in Tennessee varies depending on how quickly you prepare your documents and how long government processing takes; normally, it should take few weeks.
How do I open a taxable or bank account for an anonymous LLC in Tennessee?
After you receive EIN for anonymity connected bank account, you need to provide the documents required by the financial institution.
Can I get legal help if I’m forming an anonymous LLC in Tennessee?
Yes, you can get legal help to form an anonymous LLC in Tennessee by consulting a licensed attorney specializing in LLC drafting, converting or managing.
Can an anonymous LLC own property in Tennessee?
Yes, an anonymous LLC in Tennessee can own property, as long as it has an authorized signatory, operational checking account, and follows government compliance.
What does the public know about my anonymous LLC in Tennessee?
The public knows only what you publicly disclose while filing articles of organization. Even APRA request can be blocked under exception rule of Tennessee public record act.
Can I operate a business using an anonymous LLC in Tennessee?
Yes, an anonymous LLC in Tennessee can legally operate a business.
How do I know my anonymous LLC name preferences aren’t already taken in Tennessee?
Before registering your anonymous LLC in Tennessee, you can look up its name or take assistance of an attorney or professional search firm.
Can foreign owners own an anonymous LLC in Tennessee?
Yes, foreign owners can own an anonymous LLC in Tennessee. They just need a US-tax resident agent to open or run their business.
Can I form multiple anonymous LLCs in Tennessee?
Yes, you can form multiple anonymous LLCs with different name in Tennessee with full privacy and security of information.
How can I register an anonymous LLC in Tennessee if I don’t reside there?
You can register an anonymous LLC in Tennessee as an out-of-state owner, you just need a US-based registered agent and physical address.
Can my registered agent service provide mail forwarding services for my anonymous LLC in Tennessee?
Yes, a registered agent service in Tennessee can receive necessary legal mail and reconcile payment on my behalf on your behalf.
How do I shield my assets and privacy through anonymous LLC in Tennessee?
You can shield your assets and privacy through an anonymous LLC in Tennessee by setting up the LLC in a title-holding trust, while following regulatory guidelines.
Can the IRS force disclosure of anonymous LLC’s tax information?
There is no such guarantee or absolute guideline like this in the law for anonymous Tennessee LLC but corporate resolution and banking requirements will need W9 requirement disclosure vis-a-vis significant business partner(s).
Will the State of Tennessee breach anonymity on a LLC to investigate a crime?
Though usually unlikely without a subpoena or court order to produce personally identifiable information unless necessary in any specific investigation.
Who can form an anonymous LLC in Tennessee?
Anyone over the age of 18 can form an anonymous LLC in Tennessee.
What information is required to form an anonymous LLC in Tennessee?
Names of members and organizers, mailing address, and payment for filing fees are required to form an anonymous LLC in Tennessee.
Can I use a personal address to form an anonymous LLC in Tennessee?
No, the LLC needs a legal address within the state of Tennessee.
Is it mandatory to have a registered agent for an anonymous LLC in Tennessee?
Yes, it is mandatory to have a registered agent to form an anonymous LLC in Tennessee.
Can a single person manage anonymous LLC in Tennessee?
Yes, a single person can also manage an anonymous LLC in Tennessee.
Is forming an anonymous LLC in Tennessee a complicated process?
No, it is a straightforward process that takes roughly 3 to 4 weeks in Tennessee.
Do I need to visit Tennessee to form an anonymous LLC there?
No, you do not need to visit Tennessee in person to form an anonymous LLC there.
Can I form an anonymous LLC from another country?
Yes. You can form an anonymous LLC in Tennessee from anywhere in the world.
Are there any specific requirements for naming an anonymous LLC in Tennessee?
Yes, the LLC name must end with a phrase like Limited Liability Company or LLC.
Can I use an existing business name to form an anonymous LLC in Tennessee?
No, your LLC name should be unique. You can check the Tennessee secretary of state’s database to ensure a name is not already taken.
How much is the registration fee for forming an anonymous LLC in Tennessee?
The registration fee for forming an anonymous LLC in Tennessee is $300, as of 2021.
Is there any privacy fee required for forming an anonymous LLC in Tennessee?
Yes, in addition to the registration fee, there is also a privacy fee of $50 in Tennessee.
Can anyone access the record of an anonymous LLC in Tennessee?
No, the record is confidential, and it is not available for public view.
Do I need to file any annual report to maintain an anonymous LLC in Tennessee?
Yes, the annual report fee for maintaining an anonymous LLC in Tennessee is $50.
Is there any penalty for failing to submit the annual report of an anonymous LLC in Tennessee?
Yes, if you fail to submit the annual report of an anonymous LLC in Tennessee, there is a late fee of $50, and in certain circumstances, your LLC will automatically be dissolved by the state.
How long does it take to get an EIN for an anonymous LLC in Tennessee?
You can get an EIN number for an anonymous LLC in Tennessee immediately after formation.
Does Tennessee LLC require a state tax return?
No, Tennessee does not require a state tax return at the LLC level.
What are the tax obligations of an anonymous LLC in Tennessee?
Anonymous LLCs in Tennessee are pass-through entities, meaning the profits and losses flow through to each member’s individual tax return.
Can an anonymous LLC in Tennessee operate outside of Tennessee?
Yes, an anonymous LLC formed in Tennessee can legally operate in other states and other countries as well.
Can an anonymous LLC do business or operate under a fictitious name in Tennessee?
Yes. Tennessee is known as a “fictitious name” state, meaning an anonymous LLC operating under another name is permitted upon filing necessary paperwork.
Is it mandatory for an LLC in Tennessee to file any excise tax returns?
An anonymous LLC is not required to file an excise tax return in Tennessee unless the business planned to have employees.
Can a non-US resident form an anonymous LLC in Tennessee?
Yes. Non-US residents are welcome to form an anonymous LLC in Tennessee, although an LLC option could be available in your respective country.
How many members can an anonymous LLC in Tennessee have?
Anonymous LLCs in Tennessee may have an unlimited number of members
Is there any limit on foreign ownership of an anonymous LLC in Tennessee?
Anonymous LLCs in Tennessee place no limit on foreign ownership.
Does forming an anonymous LLC in Tennessee offer any liability protection to its members?
Yes, forming an anonymous LLC in Tennessee offers the same liability protection to its members and managers as a regular LLC in Tennessee.
Can I convert my existing LLC in Tennessee to an anonymous LLC?
Yes, you can reorganize an existing LLC in Tennessee into an anonymous one.
Is it easy to dissolve an anonymous LLC in Tennessee?
Yes, it is a simple and inexpensive process to dissolve an anonymous LLC in Tennessee.
Does anonymous LLC coverage and benefits run out once if the owner sale own part of it?
The benefits and coverage of an anonymous LLC transferred with the sale or transfer of the individual’s ownership stake unless the operating agreement of the LLC dictates otherwise.

Also Read

Why You Should Start Tennessee Anonymous LLC

One of the key advantages of forming a Tennessee Anonymous LLC is the ability to maintain anonymity. With traditional business structures, such as sole proprietorships or general partnerships, the personal information of owners is often made public through state registration documents. However, by creating an anonymous LLC, individuals can keep their identity and personal information confidential. This can be particularly beneficial for entrepreneurs who wish to protect their privacy and prevent their personal details from being easily accessible to competitors, customers, or other potential threats.

Moreover, forming a Tennessee Anonymous LLC can help protect personal assets from potential business risks and liabilities. In the event that the business incurs debts, faces lawsuits, or experiences financial difficulties, having an LLC in place can help shield personal assets, such as homes, savings, and vehicles, from being seized to satisfy business obligations. This separation of business and personal finances can provide a layer of protection for owners and give them peace of mind in times of uncertainty.

Additionally, an anonymous LLC can offer added security for business owners. By keeping personal information private, entrepreneurs can reduce the risk of identity theft, financial fraud, or other malicious activities targeting their personal details. This added layer of security can help individuals protect their assets and reduce the likelihood of becoming a target for fraudulent schemes or cyber attacks.

Furthermore, an anonymous LLC in Tennessee can allow individuals to conduct business with a greater sense of privacy and confidentiality. By keeping ownership details confidential, entrepreneurs can maintain a level of anonymity when entering into contracts, dealing with suppliers, or engaging in other business activities. This can be particularly beneficial for individuals who value discretion in their business dealings and prefer to maintain a low profile in the public eye.

In conclusion, starting a Tennessee Anonymous LLC can provide numerous advantages for entrepreneurs looking to protect their personal information, minimize liability, and maintain privacy and security in their business operations. By taking advantage of the protections and benefits offered by an LLC, individuals can establish a solid foundation for their business while safeguarding their personal assets and information. If you are considering starting a business in Tennessee, forming an anonymous LLC may be a wise decision to help you achieve your business goals and protect your interests.

Conclusion

Forming an anonymous LLC in Tennessee can provide numerous benefits for entrepreneurs, including increased privacy and asset protection. Following the steps outlined in this article, you can successfully establish an anonymous LLC and enjoy its advantages. However, consulting with an attorney or professional advisor is always recommended to ensure you make the best decisions for your unique business needs.

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