Your Privacy is Blown if You Make this Common Mistake When Buying Property in an LLC

People who purchase property in an LLC usually do so to maintain privacy and to limit personal liability in the event of a lawsuit or divorce.

Owning property in the name of an LLC is a good way to hide a buyer’s identity because the LLC is listed publicly as the property owner. Many celebrities and people who value their privacy purchase property under the name of an LLC.

When forming an LLC there is a simple yet common mistake oftentimes made that ends up revealing the true owner’s identity.

There are various online sources that allow the public to search property records including the Automated City Register Information System (ACRIS). These records provide information about the property owners, taxes, mortgages, etc.

If you own property in an LLC but use the actual property address as the LLC’s address and if you are the signatory for official documents and add your signature, that information will be available to the public and hence your identity revealed.

There are a couple of ways to avoid this:

01) Use your attorney’s mailing address as the LLC’s mailing address (consult with your attorney) or set up a business mailbox with a UPS store that provides a real street address, not a P.O. Box.

02) Designate a manager for the LLC with signing authority. The designated person is not required to be a member or manager.

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