Permits use of nominee stockholders, directors, and officers of corporations and nominee members and managers of LLC’s Only the director(s) and officer(s) of a corporation and the manager(s) of the LLC need to be disclosed. Nevada and Wyoming do not require shareholders or the members of an LLC to be disclosed in any initial or annual corporate or LLC filings. Privacy for stockholders and members by not requiring that their names become part of the public corporate or LLC records. The stated advantages to organizing under Nevada or Wyoming law for privacy purposes include: Myth# 1: You Can Maintain Complete Privacy by Organizing in Nevada or Wyoming (or elsewhere) I try to dispel a few of these myths below. Organizing in Wyoming, Nevada or Delaware may or may not provide better asset protections than any other state. Unfortunately, many new entrepreneurs get lured into believing what often amounts to false hype. Guaranteed asset protection simply through anonymous ownership of a business entity is a myth. There are a ton of myths out there regarding privacy and asset protection. However, any personal creditor willing to spend the money will not have any trouble finding your assets in most cases, and you would be compelled to disclose your assets if you are sued personally and your creditor is awarded a judgement against you. So, privacy can sometimes make it more expensive for a potential plaintiff to find your assets. The plaintiff will have to spend more money and most lawsuits are a simple game of pure economics. Preventing the average Joe from finding out what companies you may own by searching public records is a good thing. The single greatest benefit of a state’s privacy protections is that it can help prevent frivolous litigation. Essentially, these states are touted by incorporation and asset protection services as having laws that better protect the personal assets of shareholders and LLC members from attack by corporate or LLC creditors due to these disclosure limitations. Usually, these “privacy” states only require that the directors and officers of the corporation, or the managers of the LLC, be disclosed on the Articles of Incorporation or Articles of Organization and all future annual reports. In fact, Wyoming does not require the disclosure of the managers of the LLC in the initial organizing documents (articles of organization) or in any subsequent annual report filings. Nevada and Wyoming and Delaware are usually the states being sold as “privacy and asset protection havens.” These states do not require the disclosure of the identities of the shareholders of a corporation, or members of a manager-managed LLC in the required initial corporate filings (public records). There are a number of Internet incorporation services touting certain privacy benefits, namely personal asset protection, by organizing your business under the laws of a certain state. Perhaps your buddy the Internet marketer got sued last month and you believe you can avoid the same fate if people can’t find out who you are. Do you want to ensure your ownership interest in a business is completely anonymous? This could be for a number of different reasons, including avoiding baseless lawsuits.
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