Freelance through an anonymous LLC. Client contracts, 1099-NEC, and self-employment tax all handled cleanly.
By Shafwan Ahmed, Operations & Fulfillment Lead, Anonymousllc.co
Wyoming anonymous LLC, single-member disregarded entity for freelancers under $60k/yr net. S-corp election above that to save self-employment tax on the non-salary portion. The LLC signs contracts, receives 1099-NEC under EIN (not personal SSN), and holds the business bank account.
Freelancers' client lists are visible on portfolios, LinkedIn, and case studies. State filings + client invoices frequently surface the freelancer's home address. An anonymous LLC keeps your home address off invoices, contracts, and state records - the Wyoming RA address replaces it everywhere.
Lowest annual cost. No state income tax. S-corp election compatible. Wyoming RA address replaces your home address on every invoice. Best banking acceptance.
| State | Price | Notes |
|---|---|---|
| Wyoming (recommended) | $397 | Best balance of cost, anonymity, banking acceptance. |
| New Mexico | $347 | Cheapest. No annual report. Banking is harder. |
The Wyoming registered agent address ($100/yr) replaces your home address on the Articles of Organization, annual report, client contracts, and invoices. Your name never appears on the public state filing. Freelancers expose their client lists on portfolios, LinkedIn, and case studies, and state filings plus client invoices routinely surface a home address. A Wyoming anonymous LLC closes both gaps: your name stays off the Secretary of State index, and the registered agent address stands in for your home everywhere a business address is shown. Clients see the LLC name on the contract and the registered-agent address on the invoice, while passive searchers of state records find neither your name nor where you live. Your identity remains known to the bank and the IRS, so this is public privacy, not concealment from lawful process.
Elect S-corp status once net business income consistently clears about $60,000 per year. Below that, payroll and compliance costs exceed the self-employment tax the election saves. A single-member Wyoming LLC defaults to a disregarded entity, and all net profit is subject to 15.3% self-employment tax. Filing Form 2553 switches the LLC to S-corp taxation, letting you take a reasonable salary subject to payroll tax and the remainder as distributions that escape self-employment tax. The crossover sits near $60,000 of net income, because S-corp status requires running payroll, filing Form 1120-S, and added bookkeeping. The IRS demands a reasonable salary; paying yourself only distributions gets the entire amount reclassified as wages. Non-resident freelancers cannot make this election.
Form the LLC, get the EIN, then send each client an updated W-9 carrying the LLC name and EIN in place of your personal SSN. Future 1099-NEC forms then issue to the LLC. Clients report contractor payments on Form 1099-NEC using whatever taxpayer ID sits on your W-9. Once you replace your SSN with the LLC EIN, the year-end 1099-NEC carries the LLC's name and ID rather than yours, and the income flows onto the LLC's books. Update your contract templates and invoices to name the LLC as the contracting party at the same time. Continuing to invoice under a personal SSN after forming the LLC defeats the purpose - the income keeps tying back to you personally on IRS records.
Freelance income has no withholding, so you pay quarterly estimated taxes to the IRS on April 15, June 15, September 15, and January 15. Missing them stacks penalties and interest fast. A disregarded single-member LLC passes all profit to your personal return, and because no employer withholds tax, the IRS expects estimated payments four times a year covering income tax plus self-employment tax. Calculate each payment from year-to-date net income and set aside a fixed percentage of every client payment into the LLC account so the cash is ready. After an S-corp election, the salary portion carries payroll withholding, but distributions still require estimated payments on the remaining income. Underpaying any quarter triggers an IRS penalty computed as interest on the shortfall.
Wyoming at $397 is the recommended choice: the lowest annual cost, no state income tax, S-corp compatibility, and the best banking acceptance. New Mexico at $347 is cheapest but banking is harder. Wyoming costs $397 all-in ($297 service plus $100 state), keeps a $60 minimum annual report, charges no state income tax, and supports the S-corp election a growing freelancer will want. Its registered agent address replaces your home on every invoice, and Mercury and Relay approve Wyoming LLCs readily. New Mexico costs $347 all-in ($297 plus $50 state) and requires no annual report and no annual fee, which appeals on price, but its banking approvals run harder. For a freelancer who depends on a working business account to receive client payments, Wyoming's banking edge outweighs the $50 difference.
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