Using an out of state LLC for everything personal? (California)

[CalBayArea]

I have a few quick questions. The below is just theoretical, I imagine someone will throw in some James Bond jokes or something. I had tried reading some overviews about these topics on FindLaw, but didn't understand everything, and there are many variables.

I live in California. I would like to do the following, setup a simple LLC to put my personal bank account under, as in move my money into it, and also have a credit card under that LLC name versus my personal name. I can make an EIN with the IRS for the LLC name to use for applying for a credit card I believe. I would also be able to use this LLC to buy my home, a car, cell phone etc... Essentially staying anonymous as can be legally. I'd use my attorney as the contact agent and mailing address for the LLC.

So, 1: can those things be done. And 2: Can I setup the LLC outside of California where it is not $800 a year to renew. Such as Delaware? I am not operating a business per say, it's just for my property I own, bank account, and credit card.

 

[justalayman]

So you want all of your personal assets to be at risk since they will become LLC assets? You do realize that is the primary benefit of creating an LLC, right? It is used to protect your personal assets which apparently you won't have any to protect since they will become LLC assets.

And while you put your assets at risk the income will pass through to you so you pay personal taxes on any income.

Then you get to pay self employment taxes as well

Generally you have to have your LLC registered in whatever state you do business in...

and you will get to file taxes in whatever state your LLC is based in and quite possibly in every state your LLC does business in.

Does your attorney live in Delaware or whatever state you want to base your LLC in? Your registered agent usually has to have a legal presence in the state you form your LLC in. In California they have to be registered with the state to even be a registered agent.



Speaking of income; how is the LLC going to generate income? You don't get to simply put your income earned through other means in the LLC.


And what makes you think a bank will issue a credit card or lend money to to purchase anything, especially something like a house to your LLC at all? Banks don't generally extend credit to unknown entities, at least without somebody being a personal guarantor.

 

[CalBayArea]

-If the primary benefit of an LLC is to protect assets, then how would it be putting them at more risk than just under my regular name?

-The LLC would not generate any income, I would just put any money I make or have, into the bank account of the LLC.


-I would not be looking for loans.
Perhaps the credit card would be a business card, such as Capital one Spark, etc.....

And I'm not really doing business in the state, it's just to hold assets. I could use a Delaware based attorney as the contact for it?


I don't know, I guess there are way too many theoretical here to guess on....

So you want all of your personal assets to be at risk since they will become LLC assets? You do realize that is the primary benefit of creating an LLC, right? It is used to protect your personal assets which apparently you won't have any to protect since they will become LLC assets.

And while you put your assets at risk the income will pass through to you so you pay personal taxes on any income.

Then you get to pay self employment taxes as well

Generally you have to have your LLC registered in whatever state you do business in...

and you will get to file taxes in whatever state your LLC is based in and quite possibly in every state your LLC does business in.

Does your attorney live in Delaware or whatever state you want to base your LLC in? Your registered agent usually has to have a legal presence in the state you form your LLC in. In California they have to be registered with the state to even be a registered agent.



Speaking of income; how is the LLC going to generate income? You don't get to simply put your income earned through other means in the LLC.


And what makes you think a bank will issue a credit card or lend money to to purchase anything, especially something like a house to your LLC at all? Banks don't generally extend credit to unknown entities, at least without somebody being a personal guarantor.

 

[quincy]

I have a few quick questions. The below is just theoretical, I imagine someone will throw in some James Bond jokes or something. I had tried reading some overviews about these topics on FindLaw, but didn't understand everything, and there are many variables.

I live in California. I would like to do the following, setup a simple LLC to put my personal bank account under, as in move my money into it, and also have a credit card under that LLC name versus my personal name. I can make an EIN with the IRS for the LLC name to use for applying for a credit card I believe. I would also be able to use this LLC to buy my home, a car, cell phone etc... Essentially staying anonymous as can be legally. I'd use my attorney as the contact agent and mailing address for the LLC.

So, 1: can those things be done. And 2: Can I setup the LLC outside of California where it is not $800 a year to renew. Such as Delaware? I am not operating a business per say, it's just for my property I own, bank account, and credit card.

What I have bolded above is of some concern. You have no business? Do you intend to transact business through your LLC?

If you are thinking of setting up an LLC solely as a way to protect and/or hide personal assets from a pending lawsuit or from creditors or because of a contemplated divorce, or if you are thinking of setting up an LLC as a way to evade taxes (rather than legally avoid them), I recommend you rethink your plans.

If you have a business plan and are looking ahead to forming a business structure where business assets are protected, and if you are looking for a state where you can register your business with little disclosure, maintaining a certain degree of anonymity, or if you are mostly concerned about paying taxes, there are advantages and disadvantages that can be present in every state. Wyoming can be desirable for its lack of business taxes, and Delaware can be good if you plan on operating your business in several states, and Nevada provides some anonymity ....

Because your goals need to be known before you can discuss business structure and what is possible and what is best, you should locate a business law professional in your area of California to personally go over with you your wants and needs.

It does not sound from your second post that it is an LLC that you want or need. You might want to speak to an attorney in your area about setting up a trust.

 

[CalBayArea]

Okay, I see. Your thinking I am trying to evade taxes or some debt, something I shouldnt be doing, that's understandable. So, this is actually about anonymity. I'd prefer to go to the extreme, I like the concept of staying private.

Recently someone from my past that I did not want any contact with had recently located me. It was very concerning. I believe he got my cell number from someone, and paid for a premium cell phone report.

But it got me thinking, anyone can look up a homeowners name on the deed at or on the county recorders website to find you by your home, and every time I buy something at a store, my name is on the receipt from the credit card, same thing with ordering online. So I could create an LLC and put everything under that, and would like to, I plan on pursuing this.

What I have bolded above is of some concern. You have no business? Do you intend to transact business through your LLC?

If you are thinking of setting up an LLC solely as a way to protect and/or hide personal assets from a pending lawsuit or from creditors or because of a contemplated divorce, or if you are thinking of setting up an LLC as a way to evade taxes (rather than legally avoid them), I recommend you rethink your plans.

If you have a business plan and are looking ahead to forming a business structure where business assets are protected, and if you are looking for a state where you can register your business with little disclosure, maintaining a certain degree of anonymity, or if you are mostly concerned about paying taxes, there are advantages and disadvantages that can be present in every state. Wyoming can be desirable for its lack of business taxes, and Delaware can be good if you plan on operating your business in several states, and Nevada provides some anonymity ....

Because your goals need to be known before you can discuss business structure and what is possible and what is best, you should locate a business law professional in your area of California to personally go over with you your wants and needs.

It does not sound from your second post that it is an LLC that you want or need. You might want to speak to an attorney in your area about setting up a trust.

 

[quincy]

Okay, I see. Your thinking I am trying to evade taxes or some debt, something I shouldnt be doing, that's understandable. So, this is actually about anonymity. I'd prefer to go to the extreme, I like the concept of staying private.

Recently someone from my past that I did not want any contact with had recently located me. It was very concerning. I believe he got my cell number from someone, and paid for a premium cell phone report.

But it got me thinking, anyone can look up a homeowners name on the deed at or on the county recorders website to find you by your home, and every time I buy something at a store, my name is on the receipt from the credit card, same thing with ordering online. So I could create an LLC and put everything under that, and would like to, I plan on pursuing this.

It is impossible to remain totally anonymous if you own a home or other property, have a job, drive a car, are otherwise licensed, use the internet, make phone calls, pay taxes ...

If your goal is simply to avoid unwanted calls from people in your past, there are easier ways to do that than setting up an LLC.

That said, if you are looking to protect assets with a legal and legitimate purpose in mind, you can sit down with an estate planner/trust attorney to go over the ways to do this.

Good luck.

 

[CalBayArea]

Yeah not like that, Ha. I think this was a bad post for me to make, I am neither trying to be an invisible CIA agent nor trying to evade taxes or debt.

I just wanted to operate a credit card, personal bank account and phone under an LLC, and place my home under an LLC. While using an attorney as my point of contact.

I know many developers and notary people use LLC's to buy houses all the time to stay private.

It is impossible to remain totally anonymous if you own a home or other property, have a job, drive a car, are otherwise licensed, use the internet, make phone calls, pay taxes ...

If your goal is simply to avoid unwanted calls from people in your past, there are easier ways to do that than setting up an LLC.

That said, if you are looking to protect assets with a legal and legitimate purpose in mind, you can sit down with an estate planner/trust attorney to go over the ways to do this.

Good luck.

 

[quincy]

Yeah not like that, Ha. I think this was a bad post for me to make, I am neither trying to be an invisible CIA agent nor trying to evade taxes or debt.

I just wanted to operate a credit card, personal bank account and phone under an LLC, and place my home under an LLC. While using an attorney as my point of contact.

I know many developers and notary people use LLC's to buy houses all the time to stay private.

I am happy to learn that you have no nefarious purpose in wanting an LLC.

You are correct that many developers have LLCs. LLCs, and real estate trusts, can be formed by those wishing to purchase investment properties. Both can provide some anonymity (and liability protection) for real estate investors and developers.

But there are public records and state fees and taxes (etc) that make disguising identity difficult for anyone despite best efforts to stay anonymous and it becomes especially difficult for a single individual who wishes to purchase investment property. The advantage to a single individual forming an LLC for investment property purchase purposes is that the property can be managed under the LLC and, if set up and operated properly, personal assets are not in jeopardy - only the business assets.

For what you seem to want to do, however, I suggest again that you look into the possibility of a trust, one that can be used to protect your assets while disguising (as much as is possible today) your ownership of these assets. Trusts (or trusts within trusts), for example, are often used by those who inherit or win a large sum of money (like lottery winners). A trust can be created in a name other than your own and you will be the grantor, the trustee and the beneficiary.

But, of course, none of this will prevent unwanted phone calls from people you would rather forget. For that, you will either need to give up your phone, or give up your current life and try to live off the grid (in some remote area of the country or the world).

 

[CalBayArea]

That's true, I could use a trust for my bank account and home.

But I don't think that would cover a credit card and phone plan. With credit card, you can setup an EIN through the IRS website, and use that to apply. But I would need to have a a business setup, such as LLC still.

I still realize there's lots of public record and all, and no one is invisible. But just with what I am wishing to do, I would like to do regardless. Keep my actual name off of my Credit Card, Phone, Home and bank account.

I am happy to learn that you have no nefarious purpose in wanting an LLC.

You are correct that many developers have LLCs. LLCs, and real estate trusts, can be formed by those wishing to purchase investment properties. Both can provide some anonymity (and liability protection) for real estate investors and developers.

But there are public records and state fees and taxes (etc) that make disguising identity difficult for anyone despite best efforts to stay anonymous and it becomes especially difficult for a single individual who wishes to purchase investment property. The advantage to a single individual forming an LLC for investment property purchase purposes is that the property can be managed under the LLC and, if set up and operated properly, personal assets are not in jeopardy - only the business assets.

For what you seem to want to do, however, I suggest again that you look into the possibility of a trust, one that can be used to protect your assets while disguising (as much as is possible today) your ownership of these assets. Trusts (or trusts within trusts), for example, are often used by those who inherit or win a large sum of money (like lottery winners). A trust can be created in a name other than your own and you will be the grantor, the trustee and the beneficiary.

But, of course, none of this will prevent unwanted phone calls from people you would rather forget. For that, you will either need to give up your phone, or give up your current life and try to live off the grid (in some remote area of the country or the world).

 

[quincy]

That's true, I could use a trust for my bank account and home.

But I don't think that would cover a credit card and phone plan. With credit card, you can setup an EIN through the IRS website, and use that to apply. But I would need to have a a business setup, such as LLC still.

I still realize there's lots of public record and all, and no one is invisible. But just with what I am wishing to do, I would like to do regardless. Keep my actual name off of my Credit Card, Phone, Home and bank account.

Well then, I guess you probably should sit down with an attorney in your area to see what can be set up to meet your goal of privacy in a very public world.

Good luck.