LLC law has melted my brain.

OP did say his intent was fraud.

nianain said:

OP did say his intent was fraud.

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I hope that's a typo.

For the record, so that everyone is clear, my intent was neither fraud, nor impenetrable anonymity. If you're doing any business at all with any income and banks, you need an EIN, and that EIN is tied to your personal SSN.

The only way around this is some serious cash sucking only-for-rich-people style constructs. Corporation with nominee directors, nominee managers, nominee EINs. That said, most above board corporation services companies would fold like the laundry if presented with a court order.

Any corporate structure is useless if what you're doing is ruled to be fraud. It can and will suddenly become YOUR problem.

I chose an LLC for the standard corporate non-fraud protection. I chose New Mexico for the following reasons:

1) Cheap to start.
2) No annual Fees.
3) No annual Reports.
4) because of 2 & 3 the only way a NM LLC goes away is if you dissolve it, or forget to pay your registered agent.
5) Because of the sheer lack of information on the application, my personal name is kept off Public Record, and out of Google's searches.

That last point is what I want from "Anonymity". If I'm doing blackhat and whitehat, I don't want Google or others to be able to connect the two. In other states a quick google for my name would turn up every corp I own.

Warbucks said:

I hope that's a typo.

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oops.... i misread first post. i was wrong.

Great info Warbucks, thanks for sharing.

I did something like this with a WY LLC last year, but my problem was opening the bank account in the company name. To get the account opened, the bank required that I have a document proving that the company was registered to do business in my state as I live outside of WY. Well, you guessed it, my state required all of my personal information in order to get registered and all of that info is now online.

Did you happen to find a way around this little wrinkle?

Thanks again!

I have not yet gone to open an account. I got slammed with day job work and haven't done a thing.

That's one thing I'm worried about. My Mailing address is in Oregon, though I'm nowhere near there. I was planning on trying to get an account at a bank with branches in NM and OR. Maybe BoA. I have a friend who lives in Portland who may be able to help me.

You're right, it's a concern, and one I haven't dealt with yet.

how did it go warbucks? my understanding is the bank will ask for the person open the accounts information

freqout said:

Or you could just offshore the business, New Zealand does it for 100 NZD and you can use aliases for the ownership details.

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x2 on the links? or info?

Great post warbucks. Very informative.

Take a look at http://howtobeinvisible.com

rep given to op, this made for interesting reading.
may I ask for your opinion on Vermont LLCs? I know they passed hxxp://www.leg.state.vt(dot)us/database/status/summary.cfm?Bill=H%2E0888&Session=2008 which permits the formation of software-only virtual companies:
A board meeting may be conducted "in person or through the use of [an] electronic or telecommunications medium." A ‘virtual company' will be, as a legal matter, a Vermont limited liability company . And other states are required to recognize the corporation as a legitimate LLC.
The fee seemed to be around 235USD/y but I did not manage to find details on the kind of privacy/anonymity this would offer you. Will check the link from #29 as well.

Hey WarBucks,

Do you have any updates to report?

I am in the same boat. My state SUCKS for public information. If they find out who I am, it goes on the public record.

So I was thinking of forming a New Mexico LLC like you did. Apply for an EIN with the IRS using the registered agents address and then using that information to apply for a business bank account online.

If the bank would say anything, I would just say I am in college or something. Hence why my address is in New Mexico while my drivers license address is in another state.

I would take my business bank account money, transfer it into my personal account, and then pay the federal taxes, my state taxes, local taxes and my FICA through that, since single member LLCs are pass through taxation.

Yes, I am supposed to file as a foreign franchise in my state, but screw that.

Hi.
Thanks for the info, I am happy that find this thread.
Have some question, I am non usa and to open the bank account is the real pain in the ass,even with usa llc.
The question is , is it possible that I can ask nominee director to open the bank account for llc?
Also,if I found someone from other state,not for example new mexico, is the adress of llc must be from new mexico?

What about FL LLCs? I don't remember putting my name on anything other than the IRS contact since I'm the only member. FL has no state income tax also. I don't use mine for privacy so I don't know for sure, just throwing it out there.

@Warbucks

How did the setup of the NM LLC work out, was your information kept off the record as you wanted?

Did you use a custom operating agreement?

What's the situation on tax, if you don't have to file an annual report.

@ anyone else who have setup a NM LLC, any thoughts or advice, any recommendations?

If I were to set up a LLC in NM but I was based in MA, am I only responsible for NM tax and federal taxes? Does anyone know?

Did anyone ever investigate whether income from an affiliate net would be taxed?

Can anyone direct me to a resource that could help me?

Thanks

commandolphie said:

If I were to set up a LLC in NM but I was based in MA, am I only responsible for NM tax and federal taxes? Does anyone know?

Did anyone ever investigate whether income from an affiliate net would be taxed?

Can anyone direct me to a resource that could help me?

Thanks

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I'm not in the US but I have talked to an accountant in NM and have gone through the IRS website (publication 519 is a good one to start with).

Basically Income generated in the USA is taxed by the IRS, how much tax is dependant on a lot of factors - so talk to a tax accountant.

In terms of the NM LLC, only from income as a result of doing business in NM. But because it's an LLC (which is "pass through"), it's income is taxed on your tax return.

Again check with your tax accountant.

commandolphie said:

If I were to set up a LLC in NM but I was based in MA, am I only responsible for NM tax and federal taxes? Does anyone know?

Did anyone ever investigate whether income from an affiliate net would be taxed?

Thanks

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If you're based in MA, and you're paying yourself from your NM LLC, then you have to pay state income taxes for MA. You're supposed to report all income, including getting paid from affiliate networks.

Ok as far as paying taxes on LLC income, you are supposed to find as many pre-tax expenses to reduce your income as much as possible with these kinds of entities. (i.e. new computers, server costs, internet fees, etc) If your LLC is making decent profit, the IRS expects you to pay yourself a decent salary for performing work for the company, this money is taxed for FICA, federal, state, and local income tax. Any money you withdrawal as distributions is not subject to FICA taxes, but still the other three. Check with your local CPA for your tax obligations.

From my understanding, the whole point of the thread was to find an entity for the op so he could operate under multiple LLC's while being able to hide his identity from affiliate networks, whether for multiple CPA or adsense accounts or whatever. Op seems to expect no legal trouble via these entities and is using it to mask his identity. In the event of a lawsuit, a court would subpoena the LLC's bank and filing records to find the OP did in fact own/operate the LLC and would be exposed, but this is fine as the OP expects no legal action and is still protected by the LLC in the event it would happen.

This is not a tax avoidance/evasion method, it is just for appearing to these networks to be independent companies operating independently of one another, when in fact they are interlinked via being owned by the OP. Most companies will require a company contact name/number.. you will need to use an alias and be sure to keep the alias straight for each of the companies you operate under in the event that they contact you.

As for bank accounts, all you typically need are the articles of incorporation, and the EIN of the business, as well as a signed company resolution that you are authorized to open and operate bank accounts on behalf of said company. I recently went to Chase to open a bank account for a new LLC, and they looked the company up on the state filing site to check that my name was on the LLC. I'm not sure how this factors in for NM LLC's but I'm sure you'll be able to get an account somewhere.

People looking to offshore corporations/bank accounts in tax haven jurisdictions should note that if you are a US citizen, and performing services on behalf of the corporation in the tax haven, then ALL of the revenue is taxable as your income (no tax deductions allowed.) If one of these companies claims to not share information with foreign governments, and in the future gets on the tax haven blacklist.. and wants off.. they ill comply with the wishes of the US government and the owners of these entities will be open season. I think the usual punishment for filing false returns is 10 years in prison and 250k fine. This is the only reason I've hesitated about going offshore to avoid (not evade) taxes. The IRS is the biggest, most powerful mafia in the world.. anyone that tells you otherwise is delusional.

Hey Guys thanks for all the info I really appreciate it. I am not trying to evade taxes I'm just trying to figure out which taxes I would have to pay. (i.e. sales tax on affiliate income ) I spoke with the tax director at my company and he told me I may be subject to tax on profit in NM and federal, however I'll be discussing with him in more detail later this week.

Btw ifwearner thanks for the essay you wrote for us definitely sounds like you did your hw.

Just been chatting with the registered agent OP used. They no longer sign the setup papers as the organiser. So if anyone is looking to keep their name off the public record you'll need to find another agent.