By: Bob Lock

How to Best Use Multiple Structures to Preserve Anonymity—With Real Costs and Cautions

Preserving personal anonymity in asset ownership and business operations is an increasingly sophisticated undertaking for high-net-worth individuals, business owners, and philanthropists. Whether your objective is shielding yourself from public scrutiny, insulating assets from litigation risk, or simply maintaining privacy for sensitive ventures, multi-layered legal entities—such as LLCs, trusts, and foundations—remain the go-to strategy. Yet, every incremental step towards stronger privacy brings additional cost and complexity, and the law places real boundaries on what is achievable. Here’s how you can maximize privacy—and the financial, practical, and legal realities that inform the best approach.

1. Understanding and Layering Core Structures for Maximum Anonymity

Anonymous LLCs:
Formed in privacy-friendly states (Wyoming, New Mexico, Delaware, Nevada), anonymous LLCs list only registered agent details in public filings—beneficial owners stay shielded. Nominee managers or members can provide further anonymity. However, since 2024, the Corporate Transparency Act mandates non-public but government-accessible disclosure of beneficial owners for all U.S. LLCs. Thus, these entities deliver privacy from the general public and civil litigants, but not from law enforcement or the federal government.

Common Law (Private) Trusts:
Unlike statutory or registered trusts, common law trusts require no public filing, and their private trust agreements are held among the parties. Only the trustee’s name may appear as a public-facing owner (e.g., on real property or as an LLC member). Courts may compel disclosure of trust documents during legal proceedings, and banks can require beneficial owner information for compliance, but this data stays private unless triggered by litigation or regulatory inquiry.

Private Foundations:
A private foundation can sit between an individual and various asset-holding LLCs or projects. While U.S.-based foundations must file IRS Form 990-PF (listing directors and major donors above certain levels), they can still act as privacy shields for operational assets or philanthropic endeavors. Offshore or non-U.S. structures provide even greater privacy, though with higher scrutiny and regulatory complexity. Foundations help separate public presence and day-to-day operations from ultimate control, offering a buffer against public exposure in high-stakes or controversial activities.

Layering for Maximum Anonymity: How It Works
An effective anonymity strategy is not to use a single entity, but to employ “layering”—placing each asset or activity in its own compartment, often several layers deep, with as little cross-ownership as possible. For instance, a Master Trust might stand atop:

• A Real Estate (Property) Trust (for the house)
• RV Trust (for a recreational vehicle)
• Individual Vehicle Trusts (for each car)
• A Business LLC, with its own sub-LLCs for business vehicles and equipment
• A Foundation, with separate sub-entities (LLCs or trusts) for its cars, office, and equipment

Each structure reports upwards to the Master Trust, but on record, each asset is walled off by a unique entity, so public searches (and most lawsuits) cannot connect or trace ownership between them.

Example Structure Chart

Practical Example: The Master Trust owns a Vehicle Trust (RV), two Vehicle Trusts (Car 1, Car 2), a Business LLC (with its own Equipment and Vehicle LLCs), and a Foundation for projects (with Foundation Office Trust & Equipment LLC). Each entity is self-contained, minimizes cross-links, and maximizes both privacy and liability protection.

1. Real-World Cost Considerations

Cost is a major factor in designing privacy structures—and increases with every new entity and every added layer.

• Anonymous LLC: Expect $400–$1,500 in first-year costs and $200–$1,000 per year in annual compliance for each LLC, depending on state and professional agent fees.^[1][2]
• Private/Common Law Trusts: Setup runs $1,500–$5,000 for simple revocable trusts, $3,000–$10,000 or more for custom asset protection trusts (with further ongoing professional administration fees up to $5,000 per year).^[3][4][5]
• Private Foundations: Formation and IRS recognition generally costs $5,000–$25,000, with annual filings and administration costing $1,500–$10,000 or more.^[6][7]
• Complex Layered Plan: For a structure with a Master Trust, multiple sub-trusts/LLCs, a business LLC with its own asset-holding LLCs, and a foundation with further sub-entities, the initial setup could easily fall in the $20,000–$50,000 range, with ongoing costs upwards of $5,000–$15,000 annually, particularly with professional trustees, legal counsel, and accountants reviewing compliance.

III. Key Legal Points, Boundaries, and Cautions

No structure is “bulletproof.” All domestic asset structures are ultimately subject to court order (discovery in lawsuits, bankruptcy, law enforcement action) and must comply with state and federal beneficial owner disclosure requirements. Entities created or used primarily for fraud or criminal concealment will not stand up to court or regulatory scrutiny.

Compliance is not optional. Every entity—trust, LLC, or foundation—requires annual filings and must observe both the letter and spirit of anti-money laundering, tax, and regulatory laws. A missed report can pierce privacy protections and result in penalties or personal liability.

Complexity compounds risk as well as benefit. Precise recordkeeping and professional management are essential. Overcomplicating or mismanaging layers can actually increase audit and compliance risk.

Jurisdictional choice matters. Only a handful of states and international jurisdictions still provide meaningful privacy; laws may change quickly, with federal law preempting state protections where there is conflict.

Professional advice is essential. Customized legal and tax counsel is absolutely vital at every stage—from planning, through setup, to annual maintenance.

1. Practical Takeaways

• Layering entities—trusts, LLCs, foundations—compartmentalizes risk, limits asset traceability, and provides robust (if not impervious) privacy from public view.
• The cost of privacy rises steeply with each additional entity and each layer of complexity, but for significant or sensitive assets, the investment may prevent much greater threats.
• Absolute privacy doesn’t exist. Every structure is subject to the changing legal environment, required disclosure rules, and, in case of legal action, court-mandated transparency.

Conclusion

Multi-layered legal structures remain the most effective means of protecting privacy in the ownership and operation of assets, businesses, and philanthropic ventures. Creating a Master Trust and cascading sub-entities—each holding a single asset or class of assets—can thwart curiosity, mitigate risk, and strategically compartmentalize liability. However, this “privacy by design” comes at a real price: high initial formation costs, annual administrative overhead, and an unrelenting need for diligent legal and regulatory compliance. For those willing to make the investment and who prioritize privacy, layered planning, guided by expert legal counsel, delivers the strongest results the law permits.

Here is a Flow Chart showing a Master Trust with a business LLC and foundation, both of which create further sub-structures for cars, equipment, and real estate.

Structure details depicted:

• The Master Trust remains at the top as the controlling entity.
• Directly beneath the Master Trust:
  • Real Estate Trust (holds the house)
  • RV Trust (holds the RV)
  • Vehicle Trusts (Car 1, Car 2—each car in a separate trust)
  • Business LLC (operates the business)
  • Foundation (manages the humanitarian project)
• Beneath the Business LLC:
  • Equipment LLC (holds business equipment)
  • Vehicle LLC (holds business-use vehicles)
• Beneath the Foundation:
  • Foundation Vehicle LLC (holds foundation-use cars)
  • Foundation Equipment LLC (holds foundation equipment/assets)
  • Foundation Office Trust (holds an office building for the foundation)

Each physical asset or operational grouping is isolated in its own dedicated legal structure, preserving both anonymity and liability separation, with all structures reporting upwards to the Master Trust.

© 2025  – Bob Lock –   Anti-Radical Blog

If you are interested in additional educational resources in preparation for
your appointment and afterwards, take a look at my book and the posts
under the “Blog” page of my website at: https://www.therealboblock.com.

Additional resources are also pinned to my Telegram chat at: https://t.me/+Sx5ptQeC4ORCc92O.

References:

• Business Anywhere, “Anonymous LLC: How To Get Started” (2025)^[1]
• Brillant Law, “How much does it cost to setup a living trust: 7 Powerful Truths in 2025”^[3]
• Dominion, “Here’s What It Costs to Set up an Asset Protection Trust” (2024)^[5]
• CPAKPA, “How much money do you need to start a private foundation?”^[6]
• The Nestmann Group, “How to Create a Private Family Foundation: Benefits, Drawbacks” (2025)^[7]

1. https://businessanywhere.io/anonymous-llc/
2. https://easyfiling.us/anonymous-llc-states/
3. https://brillantlaw.com/how-much-does-it-cost-to-setup-a-living-trust/
4. https://greinerlawcorp.com/living-trust-setup-cost/
5. https://www.dominion.com/trusts/asset-protection-trust-cost
6. https://www.cpakpa.com/learn-about-foundations/how-much-money-do-you-need-to-start-a-foundation
7. https://www.nestmann.com/how-to-create-private-family-foundation