A nominee manager is a third party who is listed as the manager of your LLC on public records. They have no actual authority over your business — they simply lend their name so yours does not appear in state databases. Think of it as a privacy shield for your LLC's management listing.
How Nominee Services Work
When you form a manager-managed LLC, the state requires a manager name on the Articles of Organization. In states that publish this information, anyone can look up your LLC and see the manager's name.
A nominee service provides a person (or an entity) to serve as the named manager. Behind the scenes, you maintain full control through:
- An operating agreement that specifies you as the true decision-maker
- A nominee agreement that limits the nominee's authority
- A resignation letter signed by the nominee (held in reserve)
The nominee has no access to your bank accounts, cannot sign contracts on your behalf, and cannot make decisions for your LLC. Their role is purely to appear on the public record.
When You Need a Nominee Manager
- Your state requires a manager name on public records. Some states list the manager or organizer on searchable databases.
- You face personal safety concerns. Domestic violence survivors, public figures, and people dealing with stalkers have legitimate reasons to keep their names off public records.
- Competitive intelligence. You do not want competitors knowing which businesses you own.
- Real estate investing. Tenants and opposing parties in negotiations cannot identify you as the owner.
When You Don't Need One
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No hidden fees, no upsells. Sedes includes everything — formation, EIN, operating agreement, and registered agent — starting at $29.
Start Free- You form in a state that does not list managers publicly. New Mexico, Wyoming, and Delaware do not require manager names on formation documents for member-managed LLCs.
- You are a member-managed LLC in a state that only lists managers. If only manager-managed LLCs must list names, stay member-managed and your name stays off the record.
- Privacy is not a concern. Most small businesses do not need this level of anonymity.
What Does It Cost?
Nominee services typically cost $100–$500 per year, depending on the provider and level of service. Some formation services include basic nominee service as part of their premium packages.
Legal Considerations
Using a nominee manager is legal in all states. However:
- You cannot use a nominee to commit fraud or evade taxes.
- Courts can compel disclosure of the real owners during litigation.
- BOI reporting to FinCEN still requires identifying the beneficial owners.
A nominee protects you from casual public searches, not from the government or legal process.
Sedes offers nominee services as part of our Shield and Fortress plans for business owners who need enhanced privacy.
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