Privacy Starts Before Your LLC Is Filed
Many people form an LLC for liability protection, but confidentiality is often just as important. Real estate investors, entrepreneurs, and business owners frequently want to know how much information about them will become publicly available once formation documents are filed with the Texas Secretary of State.
The reality is that some information becomes public and some does not. The good news is that there are often planning opportunities available before the filing occurs. At Dossey & Jones, PLLC, confidentiality considerations are part of the entity formation conversation from the very beginning, as decisions made during setup can significantly impact what appears in public records later.
Choosing an LLC Name & Protecting Your Privacy
One of the first decisions when forming a Texas LLC is selecting a name.
Before filing, we typically ask clients for:
- The preferred LLC name. We also recommend providing several alternatives in case the first choice is unavailable.
- Availability verification. Names can be surprisingly difficult to secure. Clients can search the Texas Comptroller's database to determine whether a name may already be in use.
- Confidentiality considerations. We generally discourage using a personal name in the LLC name when privacy is a priority.
It is also important to understand that the Secretary of State often focuses heavily on the first two words of a business name when evaluating potential conflicts. Having backup options prepared can help avoid delays during formation.
LLC Ownership Information & What Stays Private
Many business owners assume every detail submitted during the formation process becomes public. That is not necessarily the case.
When we form an LLC, we gather:
- Names of the owners. This information allows us to properly document ownership.
- Ownership percentages. The percentage of ownership held by each member helps determine the entity's structure.
The good news for privacy-conscious business owners is that ownership information and ownership percentages are generally not part of the public filing record. This means the individuals who own the company are often not identifiable through a simple Secretary of State search.
For many clients, this distinction becomes an important component of their overall asset protection and privacy strategy.
Managers & Public Records
Understanding the Difference Between Owners & Managers
In many LLCs, the owners and managers are the same people. However, they do not have to be.
Managers are the individuals or entities authorized to make decisions on behalf of the company.
While ownership information is generally private, the manager's name is public information and appears in the Secretary of State filing records.
Because of this distinction, we often discuss confidentiality strategies with clients before filing formation documents.
Potential Manager Privacy Strategies
Depending on a client's circumstances, there may be options available to create additional layers of privacy.
Examples include:
- Revocable trust structures. If a client already has a revocable trust, we may be able to incorporate that trust into the management structure.
- Initial manager arrangements. In some situations, we can serve as the initial manager during formation and then immediately resign, appointing the client's trust as manager. In that scenario, the public filing would reflect our name rather than the client's.
- Out-of-state manager entities. Some clients choose to establish an out-of-state LLC to serve as the manager of the Texas entity.
Not every strategy is appropriate for every client, but these conversations are often most effective before formation documents are submitted.
Business Addresses & Keeping Your Home Address Private
Should You Use Your Residence Address?
Another common concern is the LLC's principal business address.
Many business owners prefer not to use their personal residence address if alternatives are available.
Reasons may include:
- Privacy concerns
- Security considerations
- Separation of personal and business affairs
- Reducing unwanted solicitations
For clients focused on confidentiality, using a home address may not always be the preferred solution.
Venture Vault Address Services
To help address these concerns, our office is launching a new service through Venture Vault.
Under this program:
- Permanent business address services. Clients receive a dedicated business address rather than using a residential address.
- Mail receipt and processing. We receive mail on behalf of the business.
- Digital mail delivery. Mail is scanned, uploaded to Venture Vault, and delivered electronically.
- Multi-entity support. The service covers up to five entities.
The annual fee for this service is currently $250 per year for up to five entities.
Because the service is still being finalized, some clients may initially use our law firm address and transition to the Venture Vault address once the system is fully operational.
Registered Agents & Additional Confidentiality Options
Who Should Serve as Registered Agent?
Every Texas LLC must designate a registered agent.
Many business owners choose to serve as their own registered agent. Others prefer to appoint a third party to create additional privacy and avoid having legal notices delivered directly to them.
We offer registered agent services for clients who prefer not to serve as their own registered agent.
Venture Vault Entity Management Services
For clients seeking more comprehensive support, Venture Vault offers additional entity maintenance services.
Options include:
- Registered agent service. Available for $150 annually.
- Comprehensive Venture Vault services. Available for $550 per entity, annually.
The full Venture Vault program includes:
- Registered agent services
- Annual corporate minutes
- Entity compliance monitoring
- Assistance in maintaining an active status
- Secure online document portal access
Clients with multiple entities may qualify for a $100 discount per entity within the Venture Vault program.
It is important to note that these services are separate from the permanent business address program discussed above.
Confidentiality Planning Should Begin Before Formation
The best confidentiality strategies are usually implemented before formation documents are filed, not afterward. Decisions involving the LLC name, management structure, business address, and registered agent can all affect the amount of information that becomes publicly available.
At Dossey & Jones, PLLC, we help clients throughout Conroe, The Woodlands, Montgomery County, and surrounding Texas communities evaluate entity formation options that align with their business, asset protection, estate planning, and privacy goals.
If you are forming a new LLC and want to explore confidentiality strategies before filing, call (281) 410-2792 or contact us online to schedule a consultation.