Can one LLC own the building while another runs the business?

Yes, it's common. The property-holding LLC would be the owner on record, and the operating LLC would lease the space. That separates liability and keeps your personal name off the deed. But you'll need a registered agent for each entity, and the operating LLC's name might still appear in some lease documents if they're recorded.

This is a standard structure. Just make sure the property LLC is properly funded and has its own bank account. Commingling assets can pierce the veil. Also, consider using a series LLC if your state allows it, but that's more complex.

How would the operating LLC pay rent to the property LLC? Would that create a paper trail that links them? I'm curious cuz if both LLCs are managed by the same person, doesn't that defeat the privacy purpose?

It can create a paper trail, but if you use a registered agent and a nominee manager for each LLC, your name might not appear publicly. However, banks and the IRS will know. Privacy from the public is different from privacy from the government.

To add to that, the lease agreement between the two LLCs could be recorded if it's a long-term lease in some jurisdictions. You might want to keep it unrecorded or use a short-term lqease to avoid public disclosure. But check local laws.

yes, you can use the same registered agent for both. The registered agent's address is typically public, but it's often a commercial address, not your personal one. Just make sure the agent is reliable and forwards mail promptly.

Another thing: if the property LLC owns the building, it might need to be registered in the county where the property is located, not just the state. That could add another layer of public record. But if you use a nominee manager, your name might not show up.

Also consider the tax implications. The property LLC might need its own EIN, and you'll have to file separate tax returns. It's more paperwork, but it's manageable.

I've seen this setup work well for anonymity. Just be careful wiht the operating agreement and make sure the two LLCs are truly separate. If you're the only member of both both, a court could still pierce the veil if you're not careful. Using a holding company or a trust might add more layers.