This will almost certainly require a move from your present location. Both your home (or rental property) and you vehicles will be in the names of anonymous limited liability companies (LLCs). Your home address will now be hidden from all but your closest relatives and friends. It will no longer appear on your annual tax returns, or anywhere else. If you follow the directions in chapter 12, “E-mail and the Internet,” your Internet/e-mail connections will be under cover and the black-hat boys and/or law firms may have to pay a PI some truly serious money to track you down. Are you worth that much to them? If not, sleep well.
I learned this one from a FEMA (Federal Emergency Management Agency) agent I met, while staying in a motel that was near a flooded area. Some years ago he bought a $98,995 motor home under another name, and did not license it. (He thus saved not only the license fees and road tax, but an $8,513.57 sales tax as well.) For $12 he got a fifteen-day permit to move it to a rural location in another state. From time to time he moves it, each time getting a temporary permit. Try to find out where this agent actually lives!
Watch For This Sneaky Trick
Suppose a private investigator wants to hear you talking to your lawyer (or mistress, or whomever). He may place a conference call, recording every word. Here is how it works. The first call would go to you, and when you answer, the PI punches HOLD and then speed-dials your lawyer. you start saying, “Hello? Hello?” Then your lawyer comes on the line. He recognizes your voice. Each of you may then assume the other person placed the call, and start to chat!
Suppose you wish to send $25,000 from Vancouver, British Columbia, to a friend in Helsinki, Finland. You would hand $25,000 cash to a Vancouver money changer (Hawaladar) in Vancouver, and receive code words (or an agreed signal such as a secret handshake) and a contact address in Helsinki. No actual cash moves out of Canada. Instead, when your friend gives the code to the correspondent hawaladar in helsinki, he will receive the equivalent in euros (less a commission) from money that is already there. To review:
-There are no written documents. The exchanges are based on mutual trust (perhaps for that reason unpopular in the United States?).
-Only local currencies are used. Thus, if you are sending money from the UK to Mexico, you pay in pounds and the receiver in Mexico collects in pesos.
-This exchange cannot be traced because no money crosses a border.
Since the IRS treats one-member LLCs as sole proprietorships for tax purposes, there are no income tax consequences. If you use your LLC for a part-time business, for example, you will merely report earnings and expenses on Schedule C and submit it with your 1040 tax return. Repeat: The income – -if any — is listed on your personal tax return. Nowhere on the tax form will the name of your limited liability company appear. As far as the IRS is concerned, your limited liability company is invisible.
“How can I prove I own the company,” I’m often asked, “if my name doesn’t appear anywhere?” If privacy is the goal, I recommend New Mexico LLCs because they do not show ownership in the Articles of Organization (which are a public record). The best way to prove ownership, then, is to have the original LLC documents coupled with an operating agreement.