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Domestic Asset Protection Trust States (20)

Domestic Asset Protection Trust States (20) - Anonymousllc.co's 2026 reference. Covers the rule, the controlling statute or regulation, common questions, and how Anonymousllc.co handles it in practice. Primary-source citations linked throughout.

By Shafwan Ahmed, Operations & Fulfillment Lead · Updated May 2026

What are domestic asset protection trust states?

Domestic asset protection trust (DAPT) states are the roughly twenty US states whose statutes allow a self-settled spendthrift trust - a trust where the person who funds it is also a beneficiary and the trust assets are shielded from that person's future creditors. Alaska, Delaware, Nevada, South Dakota, and Wyoming are the best-known. A DAPT is a different tool from an anonymous LLC, though both serve asset protection. This page explains what DAPT states permit, how a DAPT compares with an LLC, and how the two structures work together. Anonymousllc.co forms anonymous LLCs in Wyoming, New Mexico, Delaware, and Nevada; several of those double as leading DAPT states. Coverage is current as of the "Last updated" date at the top of the page.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

What is a domestic asset protection trust?

A domestic asset protection trust is an irrevocable, self-settled spendthrift trust that lets the settlor remain a discretionary beneficiary while shielding the trust assets from the settlor's future creditors. It is created under a specific state's DAPT statute. The key innovation is 'self-settled' protection. Traditional trust law denied creditor protection when the person funding the trust was also a beneficiary of it; DAPT statutes reverse that rule within their state. A DAPT is administered by a qualified trustee in the DAPT state, holds assets like cash, securities, or LLC interests, and includes a spendthrift clause that blocks a creditor from attaching the beneficiary's interest. It is a distinct structure from the LLC itself. Because the trust is irrevocable, the settlor gives up direct control in exchange for the protection, retaining only a discretionary right to distributions. That trade-off is why a DAPT suits larger personal estates rather than day-to-day operating assets.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

How many states allow domestic asset protection trusts?

Around twenty US states have enacted DAPT legislation permitting self-settled spendthrift trusts. The exact count shifts as states adopt or amend statutes, which is why this reference dates its coverage. The DAPT states share the core feature - self-settled protection - but differ on details like the statute-of-limitations period for existing creditors, exception creditors, and required trustee residency. For an anonymous-LLC founder, the states that matter most are the ones that combine DAPT statutes with strong LLC law and public-records privacy: Nevada, Delaware, and Wyoming all appear on both lists. Forming the LLC in the same state as a future trust keeps the entity and the trust under one body of law.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

Which states pioneered DAPT legislation?

Alaska enacted the first DAPT statute in 1997, followed quickly by Delaware, and later by Nevada, South Dakota, and Wyoming. These states are still regarded as the leading DAPT jurisdictions in 2026. Alaska and Delaware opened the field; Nevada built a reputation for a short statute-of-limitations window and no statutory exception creditors; South Dakota is known for trust-friendly administration; and Wyoming pairs its DAPT law with strong LLC statutes. Three of these - Nevada, Delaware, and Wyoming - are also states where Anonymousllc.co forms anonymous LLCs, which is why founders combine an LLC holding with a trust in the same jurisdiction.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

How does a DAPT differ from an anonymous LLC?

An anonymous LLC shields business liabilities and keeps owners off public records; a DAPT shields the settlor's personal assets from future personal creditors. The LLC protects the owner from the business, while the DAPT protects assets from the owner's own creditors. An LLC is formed by filing Articles of Organization and is inexpensive to maintain. A DAPT is drafted by a lawyer, funded irrevocably, and administered by a qualified trustee - a heavier and costlier structure. For most founders, the anonymous LLC handles the day-to-day protection and privacy at $397 all-in. A DAPT is added later for larger personal estates. The two solve different problems.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

Can an LLC be held inside a DAPT?

Yes. A common structure holds membership interests of an anonymous LLC inside a DAPT, so the LLC provides charging-order protection and privacy while the DAPT protects the ownership interest from the settlor's personal creditors. The LLC operates the business or holds the assets; the DAPT owns the LLC interest. This layering combines the LLC's charging-order shield with the trust's self-settled protection in one jurisdiction like Nevada or Wyoming. Anonymousllc.co forms the anonymous LLC that a DAPT holds. The trust drafting and trustee arrangement are handled by an estate-planning attorney; the LLC is the operating layer we deliver.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

What are the limits of DAPT protection?

DAPT protection has real limits: a statute-of-limitations period applies before existing creditors are barred, fraudulent transfers are voidable, and courts in a non-DAPT home state have declined to apply another state's DAPT law to a resident settlor. A DAPT is not absolute protection. The strongest DAPT case involves a settlor who lives in the DAPT state, funds the trust before any claim arises, and uses a qualified in-state trustee. A settlor whose home state rejects DAPTs faces conflict-of-law challenges. An anonymous LLC avoids that conflict question because LLC law is well settled across states. This is one reason the LLC is the first structure most founders put in place before considering a DAPT.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

Can a non-US resident use a DAPT or an anonymous LLC?

A non-US resident can own an anonymous LLC in Wyoming, New Mexico, Delaware, or Nevada with no SSN or visa, and a non-resident can settle a DAPT in a DAPT state, though the trust's cross-border tax treatment calls for specialist advice. The LLC is the accessible structure: no US residency is required, the EIN issues by fax, and the same flat pricing applies with no non-resident surcharge. A DAPT adds trustee, drafting, and international-tax complexity. Anonymousllc.co forms the anonymous LLC for non-residents entirely over WhatsApp. For a non-resident weighing a DAPT, the LLC is the practical first layer of protection.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

Which states does Anonymousllc.co form anonymous LLCs in?

Anonymousllc.co forms anonymous LLCs in Wyoming, New Mexico, Delaware, and Nevada - the four states where members and managers stay off the public record. Three of them, Nevada, Delaware, and Wyoming, are also leading DAPT states. Pricing is a $297 service fee plus the state fee: New Mexico $347, Wyoming $397, Delaware $407, and Nevada $722. New Mexico requires no annual report and no annual fee, making it the lowest-maintenance option. For a founder building toward a DAPT-plus-LLC structure, forming the LLC in Nevada or Wyoming keeps the entity and any future trust in the same asset-protection jurisdiction.

Sources
  • Wyoming Secretary of State - Business Division - Members not listed on public filings

How does Anonymousllc.co support asset-protection structures?

Anonymousllc.co forms the anonymous LLC that anchors an asset-protection plan, delivers the operating agreement and EIN, and opens business banking - the operating layer a DAPT holds. The Anonymous LLC formation is $397 all-in. We form in the state that fits your plan: Wyoming or Nevada for founders who intend to add a DAPT later in the same jurisdiction, New Mexico for zero-maintenance holds, Delaware for investor-facing entities. Start the intake on WhatsApp. We confirm scope, form the entity, and coordinate with your estate-planning attorney where a DAPT wraps the LLC interest. The LLC is the layer we deliver end to end - formation, EIN, operating agreement, and banking - while the trust drafting and trustee arrangement sit with your attorney in the chosen DAPT state.

Sources
  • IRS Publication 3402 (Taxation of LLCs) - Taxation of LLCs

Authority sources

Government, regulator, and primary-source documents underpinning this page.

IRS
IRS Publication 3402 (Taxation of LLCs)
https://www.irs.gov/pub/irs-pdf/p3402.pdf
Wyoming SOS
Wyoming Secretary of State - Business Division
https://sos.wyo.gov/Business/

Related resources

Complete State LLC Filing Fee Chart 2026
State LLC Annual Fee Chart 2026
Sample LLC Operating Agreement (Editable)

Frequently asked

An irrevocable, self-settled spendthrift trust that lets the settlor remain a discretionary beneficiary while shielding the trust assets from the settlor's future creditors. It is created under a specific DAPT state's statute and administered by a qualified trustee.
Around twenty US states have enacted DAPT legislation. The count shifts as states adopt or amend statutes. Alaska, Delaware, Nevada, South Dakota, and Wyoming are the best-known DAPT jurisdictions.
Alaska enacted the first DAPT statute in 1997, followed by Delaware, then Nevada, South Dakota, and Wyoming. These states are still regarded as the leading DAPT jurisdictions in 2026.
An anonymous LLC shields business liabilities and keeps owners off public records; a DAPT shields the settlor's personal assets from future personal creditors. The LLC protects the owner from the business; the DAPT protects assets from the owner's creditors.
Yes. A common structure holds an anonymous LLC's membership interests inside a DAPT, combining the LLC's charging-order protection and privacy with the trust's self-settled protection. Anonymousllc.co forms the LLC that the trust holds.
A statute-of-limitations period applies before existing creditors are barred, fraudulent transfers are voidable, and courts in a non-DAPT home state have declined to apply another state's DAPT law to a resident settlor. A DAPT is not absolute protection.
Wyoming, New Mexico, Delaware, and Nevada - the four states where members and managers stay off the public record. Totals run $347 New Mexico, $397 Wyoming, $407 Delaware, and $722 Nevada, each the $297 service fee plus the state filing fee.
Yes. In Wyoming, New Mexico, Delaware, and Nevada, members and managers do not appear on public state filings. Only the registered agent is visible. Your identity stays in the operating agreement, bank BSA/CIP records, and the IRS EIN record.
Yes. Non-residents form Wyoming, New Mexico, Delaware, and Nevada LLCs without an SSN or visa, obtaining the EIN by fax. Anonymousllc.co charges the same flat price with no non-resident surcharge and applies to 4-5 US banks.
No. Under the March 21, 2025 FinCEN interim final rule, domestic reporting companies are exempt, and US-formed LLCs are domestic reporting companies. Foreign reporting companies remain obligated. Anonymousllc.co confirms your status at intake.

Anonymous LLC formation - $397 all-in

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