January 28, 2014

Using a Limited Liability Company to Protect Privacy

There are a host of perfectly legitimate reasons to use a Limited Liability Company to preserve the owner's privacy.

People have formed LLCs to allow them to buy real estate when the the bidder's identity, if known, would affect the price.  (When purchasing many parcels of real estate for the construction of Walt Disney World, the Walt Disney Company famously used trusts so that landowners would not realize the buyer had deep pockets and attempt to hold out for more money.)

Financial institutions have formed LLCs to sell foreclosed property.  Some bidders offer "lowball" bids when they believe a lender is selling a foreclosed asset, thinking the lender will take almost any price to dispose of the property.  Creating an LLC to hold the property has been thought to yield higher bids in some instances.

The list goes on and on....

I have written more about this topic in a new post on the North Carolina Privacy & Information Security Law Blog.  I hope you find it useful.

photo by Roo Reynolds

1 comment:

San Diego Business Litigation Attorney said...

This is very valuable information regarding using a Limited Liability Company to preserve the owner's privacy.