I’m seeking a practical and affordable method for incorporation of a company, but one that is not simply a pass-through to my own name, as is the case of an LLC. Paying legal fees is not out of the question, but I’m unsure the best way to seek out a service or firm that can relate to the desire for personal privacy as it tends to raise concern of dubious intentions.
There are several states in the U.S. that will allow you to form an LLC or corporation without having to disclose the beneficial owners of the entity. Wyoming, Delaware and Nevada are the most popular jurisdictions when it comes to privacy protections.
Wyoming, for example, has a public database that will show the LLC is formed and validly existing under Wyoming law, but the register doesn't publish your information as the owner. You don't even have to provide this information to Wyoming.
These protections shield your identify from the public and state, but not so much with the IRS and other tax authorities. If the LLC was a single member LLC, you would still need to disclose your ownership on a Schedule C attached to your Form 1040. So, the IRS knows you own it.
If you form a Wyoming Corporation, the corporation is required to file an annual Form 1120. On Schedule K and G of the Form 1120, you're required to disclose the beneficial owners of anyone that owns directly 20% or more of the company.