![]() Formerly, establishing an entity was a state affair except of course for the necessity of obtaining a tax identification number from the IRS. These new rules are an unprecedented expansion of federal power into entity formation, an area that has traditionally been the province of states. New federal laws and regulations-in particular, the Corporate Transparency Act now being implemented by the treasury department’s financial crimes division (“FinCEN”)-are making anonymity increasingly problematic. There is, however, a countervailing trend. states (Delaware, South Dakota, Wyoming, and Nevada among others), America is now the world’s largest “offshore” haven for both stashing cash and doing so anonymously. Thanks to aggressively favorable laws passed by certain U.S. Even the finance ministers of Pakistan and Brazil appear to be siphoning money out of their countries and parking it offshore, often in the United States. It comes as no surprise that people ranging from former prime minister Tony Blair, Shakira, and the former president of Ukraine (plus various oligarchs, African dictators, and billionaires) use secretive offshore tax havens. The determined pursuit of anonymity by the global elite was highlighted by the Pandora Papers in 2021. Accordingly, anonymity is not for the faint of heart or the faint of wallet. Anonymity may be relatively achievable in the U.S., but it inevitably involves creative and expensive techniques. In the pursuit of anonymity, it is important to recognize that the American system of filings and public recordings is designed to facilitate disclosure, not concealment. Recognition of this reality should encourage sensible investors to proactively limit exposure. ![]() As long as you have what they want-cash or property-and they have a real or imagined grievance, it may be only a matter of time before they come for you. Why is privacy important? First, because information is power, and it is preferable that your opponents have as little power as possible over you and second, because we live in a combative and litigious world-and placing gratuitous, vital information about yourself, your family, and your residence into the public domain only provides potential adversaries with a roadmap to your identity and assets.Įvery day there is a John Smith who files to form an LLC under the name “John Smith Investments LLC” and then lists himself (and often his unsuspecting wife) as initial managers at his homestead address, placing this and other core personal information in the public domain.Ĭonsider the following to be a guiding rule: every member of the public, every single business partner, every single contract party, every single buyer, every single seller, every single title company, every single attorney, every single vendor, and every single agent or broker should be viewed as a potential adversary in a future lawsuit. This article attempts to hit only the highlights as they apply to legitimate privacy alternatives available to Texas real estate investors. Anonymity is a large topic and an entire book could be written on the subject.
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