Out-of-state LLC for anonymity? And tax reporting requirement?

Out-of-state LLC for anonymity? And tax reporting requirement?

New York City, NY · Member since 2017 · 3 posts · 0 votes

Hi,

I have a 2-part question seeking some level of clarity from the group as my own research has not been conclusive.

I would like to set up a LLC primarily to hold RE investments like private equity/debt funds or syndications but would like to keep my name hidden(at least not easily publicly searchable). I read/heard that a LLC formed in New Mexico with a registered agent would accomplish that as one's personal information do not need to be disclosed when filing, only the agent's information is used.

Is this understanding correct?     The information I got is mostly from: www.newmexicoregisteredagent.com

Now following that thought, as the RE investment funds held in my LLC will be most likely be LLCs with properties in multiple states, when they file K-1s in various states, is my LLC required to file in those states as well? The reason I ask is that if I invested in these RE funds as myself(not LLC), with the K1s pass-throughed to me, I only need to file when the state-specific income exceeds the minimum income level for filing in that state. I heard this may not be true if I invested via an LLC with the K1s passed through to my LLC. Does anyone have any insight?

Thanks much in advance.

John

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  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    8y

    @John Leah

    Look into trusts for ananymity. Much easier. The LLC docs are one thing then the bank. LLC Tax returns, etc

  • New York City, NY · Member since 2017 · 3 posts · 0 votes
    8y

    @Carl Fischer

    Hi Carl.  Thanks for reply.   Good points on the bank and tax returns.   Not looking for 100% anonymity per se just nothing would be in plain sight from a quick search.

    Does anyone have an opinion on the LLC tax situation?

    Thanks again.

  • Developer · Charlotte, NC · Member since 2016 · 14 posts · 10 votes
    8y
    John, NM is a great state for LLC anonymity and cheap too b/c you dont have to file annual reports. So the info you gleaned from the internet as to NM is correct. No disclosure of your name in the public record. As to your tax filing question, it is also correct that there usually is no non-filing exception for entities. If you earn income through an LLC this entity has to file a federal (and potentially state) tax return.
  • New York City, NY · Member since 2017 · 3 posts · 0 votes
    8y

    Alex.  Thanks for chiming in!

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