Can I use an acquisition company to buy a small business?

Yes, it's common. You form a new LLC (the acquisition company) in a privacy-friendly state, then that LLC buys the target's assets or membership interests. The acquisition company becomes the owner on paper. You just need to make sure the operating agreement and any financing docs don't accidentally expose you.

What about the seller's side? If the target has contracts with customers or a lease, those might have change-of-control clauses. The acquisition company itself might be fine, but the target's contracts could require disclosure of the new owner.

Using an acquisition company doesn't hide you from lenders. If you need an SBA loan, the bank will require personal guarantees and full disclosure. That pretty much defeats the privacy purpose for financed deals.

It works best for all-cash purchases. Also consider using a registered agent in a state like Wyoming or New Mexico, but remember that if the acquisition company is the buyer, the target's public filings (like a liquor license or contractor license) may still require naming the owners or managers.

How would this work if the business is a sole proprietorship with no formal entity? Can the acquisition company just buy the assets and assume assume the name?

Yes, an asset purchase is common. You'd form the acquisition LLC, then have it buy the equipment, inventory, goodwill, and maybe the trade name. The seller still has to sign off, and some states require a bulk sales notice or UCC filing, which can create a paper trail.

One pitfall: if the acquisition company has no operating history, sellers may be reluctant. You might need to show proof of funds or use a holding company structure with a parent LLC. That adds layers but also more filing fees and annual reports.

Also check state-specific rules for the target's industry. For example, some states require the actual owner to be disclosed for contractor licenses, even if the business is owned by an LLC. The acquisition company won't shield you there.

If you're buying a business with employees, the acquisition company may need an EIN and state tax registration. Those filings are not public in most states, but the target's payroll provider will still know the new owner's identity. Privacy is never absolute.