Does the second LLC have to disclose its parent company?

Depends on the state, but generally in annual reports you must list the actual member. If the member is the parent LLC, you list the parent LLC (not you personally). That's not fraud—it's just disclosure of the entity. The parent's own privacy depends on its state.

Wait, so the second LLC's report would show 'Parent LLC' as the member, but not go further up? That still seems like it defeats the purpose of anonymity if someone can just look up the parent ngl.

I think the real question is whether the second LLC is required to disclose the parent in a separate filing or just as part of the member listing. Most states only require the member name, not a full ownership chart. So listing the parent LLC is enough—but yeah, then the parent's info may be public depending on where it's registered.

Right. And some staets don't even require member disclosure in annual reports (e.g., Wyoming, New Mexico). But if you're doing business in, say, California, you might have to file as a foreign LLC and list the parent. It's a mess.

Just use a registered agent and a nomineee manager. Problem solved. (Kidding—sort of.)

Nominee manager might work for manager-managed LLCs but if the LLC is member-managed, you can't hide the member. And some states require disclosure of managers too.

Honestly, the parent LLC itself may need to be registered as a foreign LLC in that state if it's the member. Then you're just adding more paperwork and more public records. The anonymity chain gets thinner.

Only if the parent's own registration state requires member disclosure. If the parent is in Wyoming, its members aren't public. So the second LLC's report showing the parent as member doesn't expose you—unless someone sues and pierces the veil, but that's a different issue.

Also, some states require you to list the 'true owner' or 'beneficial owner' under neew federal rules (CTA). That's a whole other layer. You might have to report the parent LLC as a beneficial owner if it owns 25% or more.

The CTA is a nightmare for privacy. But for the state annual report, it's usually just the member name. The CTA is a separate federal filing (FinCEN) and not public—but still required

So basically: state report = public member listing (parent LLC), FinCEN = private but must disclose beneficial owners. Neither is 'fraud' as long as you follow the rules. But the anonymity is not absolute.

And don't forget that some states require you to list the parent's jurisdiction. So you might have to say 'Parent LLC, Wyoming' which is fine. But if the parent is in a state that also requires member disclosure, then it's turtles all the way down.

Appreciate the insights. I think I'll just list the parent as member and make sure the parent's state is privacy-friendly. The second LLC's state might not dig deeper unless there's an investigation. Not ideal but manageable.

Just don't forget the BOI report. That's the one that actually has teeth now.