Can you set up an LLC for your stream without revealing private information?

So, is it possible to set up an LLC for your stream without revealing your private information? The short answer is yes, it’s possible to make an anonymous LLC. There are a ton of factors that go in to the decision and process, so let’s get started.

This article is focused on US law and business norms. If you are outside of the US this likely doesn’t apply to you.

I am not a lawyer. If you’re going through a decision around business entity formation and where/how you shield your information you should contact an attorney. If you don’t have an attorney, reach out to me and I can point you to someone. I have run it by an attorney but I am not one.

What is an LLC? Why would a broadcaster want an LLC?

A Limited Liability Corporation (LLC) is a type of business entity. It can, if used correctly, protect a business owner’s personal assets by separating them from their business assets. This can be a huge benefit if you need to take a fairly speculative risk for the business, your business model exposes you to being sued, or even if the business fails.

The key distinction here for most broadcasters is between a sole proprietorship and an LLC. A sole proprietorship is the default type of business. The act of conducting business creates the sole proprietorship and for tax and legal purposes is considered the same as you, the owner. It is the simplest business form to set up but also the least protected.

It can also make it easier to transfer the business or bring in new partners, if needed. This is partially because the LLC entity gives a partner or buyer more confidence in your legitimacy and partially because the business is separated from you, the owner. So ultimately, you may want an LLC to protect your assets and to give you flexibility in your business. It can also confer some tax advantages, once you are earning a lot of income. Check out the article here that covers it more.

What can streamers do to make their LLC anonymous?

Have you gone through the pros and cons and decided if an LLC is correct for you? Great. Now let’s look at how you can protect your private information when forming an LLC. Most states require you to file information that is publicly available. While this has always been true now that we live in a world with the internet that information is searchable online instead of only accessible through your local office.

Your first point is WORK WITH AN ATTORNEY. I cannot stress this enough. You don’t want to screw this up doing it yourself and it will be worth the expense. If you’re thinking like a business owner you need to be thinking long term.

Then, you need to pick where you’re filing your LLC. Each state has different laws around LLC requirements and in general Delaware, Nevada, Wyoming, and New Mexico are the friendliest to anonymous filings. You can read through this article or a discussion on the benefits and disadvantages of each state.

Next, you need to hire an attorney to organize the LLC. This is the first layer of anonymity since your name won’t be there as the organizer. After that, you need to select a registered agent. This is the person who will be served court documents in your stead if there is a legal dispute. The registered agent must have a physical address in the state you’re filing your LLC in. Ask the attorney you hire for good registered agents. Again, you want this to be someone who isn’t associated with you so you can continue that anonymity.

What do I need to do to keep my LLC anonymous?

 

Unfortunately, this isn’t a one and done kind of setup. If you want to remain anonymous then you need to work at it.

There are some common pitfalls for LLC’s that you need to avoid as well as specific ones for maintaining anonymity. First, you need to avoid piercing the corporate veil.

Sounds vaguely Dark Souls-ish, huh? Unfortunately in this case it would be a negative for you. Piercing the corporate veil means that you lose the protections of an LLC. It could happen for a couple of reasons including fraud, but the most common is you don’t act as though the business and you, the owner, are separate entities.

You could be paying personal bills out of your business account (or vice versa, get a damn business bank account!), co-mingling assets, or you don’t follow the extra rules and steps an LLC puts on you as the owner. You can check out some of the rules here. In addition to those, it’s important to document why and how you made important business decisions.

Also, you can hurt your anonymity in any case where you, as the business manager, need to sign a public document. This is especially true if you’re buying real assets like real estate.

Next, you may want to look at confidentiality clauses in contracts you sign. Since you’ll still likely be responsible for signing contracts for the business you need to make sure the other side of the contract agrees not to reveal your identity. Call it the Batman clause if it makes you feel better. There will be times when you need to reveal who you are, including with banks (legally required, US PATRIOT act), lenders (they want to know to whom they’re lending), and your attorney + registered agent.

Finally, you need to make sure you actually renew your agreements as needed. It would suck to set this all up and then forget to pay the registered agent!

Is it a good idea to make an anonymous LLC?

 

 

This is a question only you can answer but I can give you a couple of factors to weigh.

First, consider cost. Both a lawyer and a registered agent cost money. You need to weigh this on your pros/cons list against your desire for privacy. Additionally, your state might have filing requirements that mean you need to pay an additional fee to your home state. For instance, California requires you to pay their LLC fee ($800) if you’re operating in the state, regardless of where you’re registered.

Next, consider the hassle factor. As we said before, there are a lot of steps that you need to take when setting up the LLC as well as ongoing requirements. Is the hassle of committing to all of that worth the protection? That answer is up to you.

Finally, there can be tax considerations with creating an LLC. This won’t be as relevant to you when you’re starting out but once you’re earning decent income you can make some changes that improve your taxes. Check out our article here for those intricacies.

Conclusion

My first conclusion is I AM NOT A LAWYER. HOLY COW, GO WORK WITH A LAWYER. STOP READING RIGHT HERE IF THIS IS SOMETHING YOU’RE CONSIDERING AND HIRE A LAWYER. If you need a referral, let me know.

Ok. So it is possible to create an LLC without revealing your personal information. However, there are cost and hassle considerations to the process and it’s not a one-time event. You need to seriously commit to maintaining your privacy. And that only counts from the state registration perspective! You could still have someone dox you through other means.

After all, anonymity is only one aspect of choosing the correct legal entity for your business. There are anonymous corporations as well which use nominee directors so an LLC isn’t your only route.

Ultimately, you will still have to be connected to your LLC because banks are required to document who their clients are because of the PATRIOT act. However, you can put many, many hurdles in between a raving fan (or stalker) and your identity.

You don’t have to figure this out alone. This is what we do- help streamers make great money decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here. I’m not a lawyer but my job is to find these kinds of opportunities and connect you with the people who can do the work you need done.