By Greg Manwelyan, written for privacy-first operators who know that real estate ownership doesn’t have to mean public exposure
Let’s start with a blunt truth: if you form your LLC in the same state where the property sits just because it’s convenient, you’re playing checkers in a game of chess.
You’re also probably putting your name, address, and signature on public record—along with a giant red arrow pointing at your assets. Because when it comes to LLCs for property ownership, the state you choose determines everything about how exposed, vulnerable, and easily targeted you are.
So let’s burn the default advice to the ground.
This isn’t about taxes. This isn’t about “business-friendly” rankings.
This is about anonymity, legal protection, and making yourself too boring to chase.
Let’s talk about where to plant your LLC—and where never to.
First, What Matters Most for a Real Estate LLC?
When your LLC is owning property, your primary concerns aren’t startup costs or Yelp reviews. You care about:
- Anonymity: Can I keep my name off the public filing?
- Asset Protection: Can someone sue me personally if something happens?
- Legal Separation: Will the courts respect the LLC as a real shield?
- Low Maintenance: Am I going to get hammered with annual fees and disclosures?
Spoiler: most states fail at least two of those.
The Top 3 States for Property LLCs—If You Want Privacy
1. Wyoming: The Gold Standard of Ghost Ownership
Why it’s best:
- No owner names listed publicly.
- You can use nominee managers.
- $60 annual fee.
- Strongest corporate veil in the U.S.
How it plays out in practice:
Your trust forms a Wyoming LLC. That LLC buys or holds title to your property in a different state. Public record shows:
“Riverstone Holdings LLC, organized in WY”
Try to find out who owns Riverstone Holdings LLC? Good luck. There’s no member registry, no public listing, and no state-level disclosure requirements. You’re behind a fog wall.
Best for: Privacy fanatics, landlords, and out-of-state investors.
2. New Mexico: Pure Anonymity, No Strings Attached
Why it’s second-best (but close):
- No member or manager disclosure at all.
- No annual report required.
- $50 to form. That’s it.
- Still relatively unknown = less targeted.
How it plays out:
You create a New Mexico LLC. You record your property deed under that LLC. The LLC is effectively untraceable—there’s not even a nominal public database of members. It’s a ghost by default.
Caveat: Doesn’t have quite the same track record for piercing-the-veil defense in court as Wyoming. But if you’re not planning to run an active business through it, that’s a minor concern.
Best for: Silent holding companies, inherited real estate, trust-owned LLCs.
3. Delaware: If You Need Legal Firepower (and Are Willing to Pay)
Why it’s worth considering:
- Nominee services are baked into the ecosystem.
- Known for corporate veil strength.
- Widely accepted by banks and lawyers.
Downsides:
- Annual franchise tax.
- Requires a registered agent and annual report.
- More expensive than NM or WY, especially long-term.
Use case: You’re going to court. You need corporate governance history. You want an LLC that makes plaintiffs nervous because of how Delaware courts treat corporate entities.
Best for: Institutional real estate investors, high-risk zones, multi-member LLCs.
States to Avoid Like a Public Tax Lien
California: The Privacy Death Trap
- $800/year minimum tax, no exceptions.
- Full disclosure of members and managers.
- Aggressively audits foreign LLCs that own CA property.
Result: Owning California property through an out-of-state LLC? The state still demands tax registration and disclosures. You’re paying premium fees and getting zero privacy.
Florida: Looks Friendly, Until You Read the Fine Print
- Full names and addresses of LLC managers are public.
- Filing info is indexed on Google almost instantly.
- Courts routinely pierce LLC veils in civil lawsuits.
Result: You’re just gift-wrapping your liability and putting your name on the bow.
Texas: Semi-Friendly, But Not for Ghosts
- Mandatory public disclosure of managers.
- Franchise tax filing required, even if $0 owed.
- Less LLC veil protection than Delaware or Wyoming.
Result: Better than California, worse than anywhere truly private.
“But I Heard I Have to Register Locally…”
Yes—if your LLC owns property in a different state, you may need to register it as a foreign LLC in that state.
BUT: that doesn’t destroy your privacy. It just means your LLC has to appear in a secondary state’s business registry. Your personal name still isn’t on the deed or entity—the LLC is.
The trick is that none of your personal info ever appears in either state. You control everything behind a trust and a nominee, even after registration.
And in many cases, if the LLC simply holds property and doesn’t “transact business,” you may not need to register at all. That’s a legal gray zone you can exploit with the right structure.
Pro Tips for Maximum Protection
- Use a trust (NOT named after you) as the sole member of your LLC.
- Form the LLC through a law firm or privacy-forward registered agent.
- Use a nominee manager if required—don’t put your name on formation docs.
- Open a separate bank account for the LLC using an EIN, not your SSN.
- Never use your home address for any LLC paperwork—get a virtual office or PO box.
Final Verdict: Go Where the Paper Trail Dies
If you want real privacy, real legal structure, and minimal public exposure, the state you form your LLC in matters more than any single line item in your estate plan.
- Wyoming is your first stop if you want ironclad privacy with a track record of asset protection.
- New Mexico is the budget-friendly ghost town that’s perfect for silent holding.
- Delaware is your weaponized choice if you’re playing at the higher levels and need the full legal suite.
Your property might be visible.
But your ownership? That’s a choice.
