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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116715
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I was just reading on how to legally hide the ownership

Customer Question

Hi, I was just reading on how to legally hide the ownership of a company. If I already have a trust but the name of the trust has our family name in it. Do I have to create a second trust within the first?
Submitted: 2 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you have a trust called "family name trust" then that does not hide ownership well, because everyone knows someone from that family owns the company. Truly, the way to do this is to create a new trust that has nothing to connect to your family, "space explorer's trust" or "moonbeam trust" or whatever and then hold the company under that trust being owner.
This is how they also do it with offshore corporations for more security. You open a trust offshore in Belize or Seychelles or some similar favorable country for banking and then your trust forms an LLC and then that LLC comes to the US and takes ownership of a US company and then it becomes pretty impossible to find the true owner because the reason for going to Belize or Seychelles or some similar place is that the US courts cannot get information, even if they pierce the veil of the foreign LLC, they come to the foreign trust and then it is impossible to get any further to know who owns that.