Concealing Ownership: Strategies for Hiding Company Ownership

In today’s business landscape, maintaining privacy and confidentiality has become a priority for many entrepreneurs and companies. Concealing ownership of a company can serve various purposes, including protecting personal assets, avoiding public scrutiny, and maintaining a competitive edge. While it is crucial to note that transparency is generally encouraged for legal and ethical reasons, there are legitimate methods available to safeguard ownership information. This article explores several strategies that individuals and businesses can employ to hide ownership of a company.

Utilizing Nominee Directors or Shareholders

One common method to obscure ownership is by appointing nominee directors or shareholders. These individuals act as representatives or placeholders, holding legal title to the company on behalf of the true owner. Nominee directors or shareholders provide a layer of separation, shielding the actual owner’s identity from public records and disclosures. It is important, however, to establish clear agreements and legal frameworks to ensure the protection of the actual owner’s rights and interests.

Establishing Offshore Companies

Creating an offshore company in a jurisdiction known for its strong privacy laws is another option for concealing ownership. Offshore jurisdictions often offer robust corporate structures that prioritize confidentiality and provide a higher level of privacy compared to traditional onshore jurisdictions. By incorporating a company in such a jurisdiction, the actual owner’s identity can be shielded, as the company’s ownership information may not be easily accessible or disclosed.

Using Trusts and Foundations

Trusts and foundations offer an effective means of hiding company ownership while ensuring control and asset protection. By transferring ownership to a trust or foundation, the actual owner becomes a beneficiary or protector, allowing them to retain control over the company’s operations and direction while distancing their public association. These legal entities provide an additional layer of separation and may operate in jurisdictions that offer favorable privacy laws.

Leveraging Holding Companies and Complex Structures

Establishing a complex corporate structure involving holding companies and subsidiaries can further obscure ownership details. By creating a network of companies, each owning a portion of the shares in the operating company, it becomes challenging for outsiders to trace the ultimate beneficial owners. This method not only protects the privacy of the owners but can also provide tax advantages and asset protection benefits.

Utilizing Privacy-Focused Jurisdictions and Legal Entities

Certain jurisdictions and legal entities specialize in providing privacy and confidentiality to company owners. These entities, such as limited liability companies (LLCs) in some U.S. states or private foundations in certain European countries, offer legal frameworks that enable the concealment of ownership information. Conducting thorough research and seeking professional advice are vital to understanding the legal requirements, advantages, and limitations of these entities.


While maintaining transparency is generally recommended and encouraged for businesses, there are instances where concealing ownership may be desirable or necessary. Establishing anonymity can protect individuals and their assets, maintain a competitive advantage, or safeguard intellectual property. However, it is important to approach these strategies within the bounds of the law and to consult legal and financial professionals to ensure compliance with applicable regulations. Ultimately, the choice to conceal ownership should be made with careful consideration of legal, ethical, and reputational implications.

Video Transcript

How Do You Hide Ownership of a Company?

I have been contacted by clients often in other states who have said, “I want to set up a company without having any public record of who the owner is.” There are some states, in fact, many states that require the owner to be a matter of public record. Minnesota is not one of them. So I have set up Minnesota LLCs and corporations for people who are looking for privacy and anonymity. They want it to remain confidential who the owner is of a company. Maybe that’s because they have a prominent role in the community, they are a celebrity, or maybe it is because they have significant assets and they don’t want anyone to know who the owner of the company is. It is also possible that the company is engaged in the type of activity that the owner may not want to publicly be associated with. So maybe it is gambling, maybe it is pornography, maybe it is nicotine or alcohol or something that for some reason, the owner doesn’t want to have publicly associated with the owner’s personal brand.

Registration of an LLC or corporation in Minnesota allows the owner to remain confidential from the public. We might also look at using a trust because a trust is another opportunity here. Now, ultimately, you usually need to disclose who the owner is to the IRS because owners have a right to profits and the IRS has a right to know who is getting profits. So usually, there is a confidential government filing that notifies the IRS of who the owner is and how much profits are being distributed to the owner. And it is for that reason we might have layers of entities like LLCs or trusts if the person really is interested in preserving privacy. Now, at the end of the day, the IRS can connect all the dots. For example, if the person is a well-known Hollywood actor worth $50 million, we may have a number of layers of protection in place, but the IRS can still follow those layers and connect the dots to see, you know, let’s say Tom Cruise or Matthew McConaughey or any one of these celebrities, that they are ultimately getting the proceeds from a particular business.


How do you preserve the confidentiality of the owner of a company? You register the company in a state where the ownership does not have to be disclosed. A state like Minnesota, for example.


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