Anonymous LLC formation - Wyoming vs New Mexico for privacy?

Looking to form an LLC for real estate holdings and want to keep my name out of public records. I've heard Wyoming and New Mexico are the go-to states for anonymous LLCs.

What's the actual difference? Is one better than the other for privacy? Also, what about nominee services - legit or sketchy?

Good question. Let me break down the privacy landscape as of May 2025:

Wyoming:

• Does NOT require member/manager names in Articles of Organization
• Only requires registered agent info (which can be a service)
• Annual report does NOT disclose members/managers
• Strong LLC asset protection laws
• Annual fee: $60 + registered agent fees (~$100-300/year)

New Mexico:

• No member/manager disclosure required
• NO annual report requirement at all (this is huge)
• No annual fees beyond registered agent
• Less established case law on asset protection

Both are excellent for privacy. Wyoming has better legal infrastructure, New Mexico is cheaper and requires less ongoing compliance.

Wait, New Mexico has NO annual report? That's wild. So once you file formation docs, you're basically done?

What about the Corporate Transparency Act I keep hearing about? Doesn't that kill anonymous LLCs anyway?

The Corporate Transparency Act (CTA) is critical to understand. As of January 1, 2024, most LLCs must file beneficial ownership information (BOI) reports with FinCEN identifying the actual people who own/control the company.

However - and this is key - that information goes to FinCEN (federal database), NOT to public records. Your state filing can still be anonymous. The public can't look you up, but law enforcement, IRS, and certain financial institutions can access FinCEN data with proper authorization.

So "anonymous LLC" in 2025 means:

• Public anonymity: Yes - Wyoming/New Mexico don't publish your name
• Government anonymity: No - FinCEN knows who you are

This is about privacy from the general public, competitors, litigants searching records - not about hiding from the government.

I have 4 rental properties each in their own Wyoming LLC. My name doesn't appear anywhere in public records. When tenants look up who owns the building, they just see "Mountain West Properties LLC" with a registered agent address.

Super useful for avoiding tenant harassment and keeping my personal address private. Property records show the LLC as owner, not me personally.

@RealEstateRick exactly my use case. Don't want tenants showing up at my house with complaints.

What about nominee services? I've seen companies offering to be listed as the member/manager on your behalf. Are those legit or just a way to get yourself in trouble?

Nominee services (also called nominee managers/members) are legal but come with risks you need to understand:

How they work: A third party is listed as the manager/member in public records, while you retain actual ownership and control via a private operating agreement.

Legitimate uses:

• Privacy from public records searches
• Protecting against stalkers, domestic situations
• Keeping business ownership confidential from competitors

Risks:

• Banks may reject accounts if they discover nominee structure
• In litigation, nominee structure will be discovered in discovery
• Some courts view it negatively, especially if used to evade creditors
• Must still report actual ownership to FinCEN under CTA

In Wyoming/New Mexico, you often don't NEED a nominee because the state already provides privacy. Just list yourself as manager but don't make that info public.

Another option: have a trust own the LLC. Your revocable living trust can be the sole member of the LLC. Adds another layer of privacy and has estate planning benefits.

I use this structure: Wyoming LLC owned by Nevada trust. Nevada doesn't require trust beneficiaries to be public. So there's literally no public record trail to me.

@TrustComplex raises a good strategy. The trust-owned LLC structure works well but adds complexity and cost. You need:

• Trust formation documents ($1,500-5,000 attorney fees typically)
• Annual trust tax return if the trust generates income (Form 1041)
• Proper trust administration to avoid it being disregarded

For most people doing basic asset protection and privacy, a simple Wyoming or New Mexico LLC is sufficient. Save the trust layer for higher net worth situations or when estate planning is a primary goal.

Important warning from someone who's been on the plaintiff side: if you're forming an anonymous LLC to hide assets from existing creditors or avoid a judgment, that's fraudulent conveyance and courts will pierce it immediately.

Anonymous LLCs work for FUTURE liability protection and privacy. They don't help if you already have legal problems. Courts can compel disclosure of beneficial owners in litigation.

Really helpful context from everyone. To summarize what I'm learning:

• Wyoming = better legal framework, annual fees, strong asset protection
• New Mexico = cheaper, no annual reports, less established case law
• Both provide public anonymity but must still report to FinCEN
• Nominee services rarely needed and can create banking issues
• Trust ownership adds complexity but maximum privacy

I'm leaning Wyoming since I want the asset protection case law and don't mind the annual $60 fee.

Good summary @PrivacyFirst_Alex. One more thing to consider: where will the LLC do business?

If you form a Wyoming LLC but operate in California, you'll need to register as a foreign LLC in California, which requires disclosing your managers. California will also charge you their $800 annual franchise tax.

The anonymous LLC strategy works best when:

• The LLC is a holding company (owns assets, doesn't actively operate)
• Business operations are remote/online (no physical state nexus)
• You don't need to foreign qualify in states with disclosure requirements

For real estate holdings like yours, it works perfectly - the property location triggers some nexus issues but rental activities generally don't require foreign qualification.

Perfect. Properties are in Texas which doesn't have state income tax and I've confirmed with a local attorney that I don't need to foreign qualify for passive real estate holdings.

Going with Wyoming LLC. Thanks everyone for the detailed breakdown - this forum is gold.