Has anyone used a parent company to separate their business ownership?

A parent company only helps if the parent itself is anonymous. Otherwise you're just hiding one LLC behind another LLC that still lists your name. So you need a Wyoming or NM anonymous LLC as the parent, then that parent owns the operating LLC. But you still have to deal with registered agent and possibly a nominee.

I did this. Holdco in Wyoming, opco in my home state. Works fine. My name is on the Wyoming filings as the organizer but not as a member. The opco's public record just shows the holdco as the member. So far so good. But it cost me about $1,200 to set up and another $500/year in fees. Is it worth it? Depends on how much yoour privacy is worth.

lol 'just more paperwork' is the understatement of the year. You're adding a second tax return, second registered agent, second annual report. Unless you have a real reason (like asset protection or multiple businesses) it's probably overkill. What are you actually hiding from?

Also, if you're in CA or NY, your opco's state filings might still require disclosure of tue parent company's owners. Some states are cracking down on shell games. Check your state's LLC act.

Nominee adds another layer but that's a whole different can of worms. You have to trust the nominee. And if they screw up, you're liable. I've heard horromr stories. For most people a parent company is plenty, especially if you use a registered agent for the opco.

In Texas, the opco's certificate of formation lists the parent as the member, so your name won't show up there. But the parent's formation in Wyoming will list you as organizer if you file it yourself. You can use a registered agent service to file and they'll list themselves as organizer. That's the trick. Then you're not even on the parent's public record.

Wait, so you're not on ANY public record? That sounds like a fun game until the IRS comes knocking.

The IRS will know. The state might not. Privacy from the public is not the same as privacy from the government. That's fine for most people.

I've been running a parent/child structure for 3 years. Two LLCs. It's worked well for me. The key is to not use the same registered agent for both, and don't use your home address anywhere. Also, don't name the parent something obvious like '[YourName] Holdings LLC'. That defeats the purpose.

Good point. Also, if you ever need to sue someone, the parent company can be the plaintiff and your name stays out of the lawsuit. That's a nice side benefit. But it also means you can't easily represent yourself in court if you're not a lawyer.

I looked into this and decided it was too much hassle. Instead I just used a DBA and a PO box. My name is still on tthe LLC but nobody's ever bothered me. Maybe I'm naive.

You're not not naive, you're just not a paranoid prepper. Different strokes.

One more thing: if you have a parent company, make sure you actually document the ownership, and keep minutes. If you get sued and they pierce the corporate veil because you didn't treat them as separate entities, you're screwed. That's the real risk, not the paperwork.