Today’s business landscape is becoming increasingly fluid, with more people than ever owning and operating professional enterprises—whether as their main occupation, a “side hustle” or both. In fact, one report reveals there are fully 582 million entrepreneurs in the world. This includes rental property owners; sellers on eBay, Etsy, Shopify, Amazon, and the like; and independents taking advantage of today’s burgeoning gig economy that’s transcending limitations of yore.

Amid the escalating desire for the independence and control that comes with business ownership, for many there is a downside: compromised privacy. No matter the size of the enterprise or number of employees—even solo-preneurship—there are a multitude of situations and reasons one might prefer to keep their business ownership private. Doing so is nothing new and can be hugely beneficial. As one infamous example, in the early 1960s, the Walt Disney Co. formed various corporations under different names to purchase large parcels of swampland in Central Florida—land that Walt Disney World sits upon today. The plan for the land to be purchased by various “shell companies” was highly successful. The Walt Disney Co. was able to fend off a burst of land speculation that surely would have halted the project before it could get started, had word got out that Disney was expanding to Florida.

Of course, smaller business owners don’t need the clout and funds of Walt Disney to achieve some level of privacy and anonymity with their own business endeavors.  In fact, the concept is called “Anonymous LLC,” which is becoming increasingly popular amongst today’s breed of business owners. This momentum to shield one’s business ownership is due, in large part, to the Internet having reached critical mass — now a ubiquitous and readily tapped resource.  Privacy is no longer as simple as maintaining an unlisted number in the phone book. With the advent of the Internet, anyone in the world can access information about veritably anyone, every day, and at any time. Details that, in decades past, would have taken the expertise of a private investigator.

While the growing popularity of business ownership anonymity is understandable and even natural, response to today’s challenges in an effort to establish and maintain privacy has not been without controversy.  Some feel the practice of anonymous incorporation is abused or is simply an attempt to cover up illegal practices. To address this misconception and generally explore the benefits of anonymous enterprises, Law 4 Small Business (L4SB), a business law firm with multiple offices throughout the United States, provided some clarity on the matter.

At the forefront in helping business owners achieve venture anonymity is L4SB Principal Attorney, Founder, and Partner Larry Donahue, who has been a pioneer and preeminent advocate for the “Anonymous LLC” for nearly two decades. In fact, not only is Donahue credited for giving the “Anonymous LLC” its name, he is reportedly the first to provide this service to the public. So, it’s no surprise that, while his firm offers a breadth of business law services, Donahue cites Anonymous LLCs as his firm’s most requested service. Also notable is the fact that L4SB, one of the few law firms that has tackled the virtual legal landscape, has made it possible for anyone in the world to readily secure an Anonymous LLC online. This as Donahue champions the role an Anonymous LLC plays in protecting legitimate business owners in the modern era. Below are some of Donahue’s key insights in relation.

First, to cover the most fundamental question, can you elaborate on what an Anonymous LLC is and the process to set it up?

LD: Simply put, an Anonymous LLC is defined as a limited liability company whose owners are not publicly identifiable by the state. It avoids public disclosure of ownership information of the LLC (i.e. Members) in the state in which the LLC is registered. This is accomplished by registering a normal, regular LLC carefully and lawfully in the states that permit anonymity. And/or it can also be accomplished by creating what’s called a “parent/child” arrangement. In this scenario, the “parent” company is an Anonymous LLC that acts as a Holding Company, which then owns a lawful Operating Company (“child”) in any state where it conducts business.

To be clear, there is legally no such thing as an “Anonymous LLC.” Were you to walk into a bank and tell them you have an Anonymous LLC, they will probably look at you like you’re crazy.  An “Anonymous LLC” is actually a regular LLC, but one that’s registered by our firm in a specialized way that prevents public disclosure of ownership information.  Our law firm acts as the organizer and registered agent for the Anonymous LLC in select states and utilizes its status as a law firm to convey attorney-client privilege and confidentiality.  Thus, an Anonymous LLC helps preserve the privacy of business owners by not permitting the ownership information to be associated with the LLC filing.

When our firm files an Anonymous LLC for clients in a state where such anonymity is possible, their personal information remains undisclosed and unpublished to the public. Because of this, Anonymous LLCs protect privacy, preserve confidentiality, and even prevent harassment.

Are Anonymous LLC’s available everywhere in the U.S.?

LD: There are a number of states that permit Anonymous LLC’s, but the most popular are Delaware, New Mexico, and Wyoming.  There are advantages and disadvantages with all three, but New Mexico is considered very private.  That being said, for our firm’s part, L4SB utilizes all states as appropriate for each client, depending on where and how they are conducting business. New Mexico Anonymous LLCs proffer the strongest privacy.

I understand your firm is realizing exponential growth for its Anonymous LLC option. Who exactly is buying them?

LD: Everybody. Seriously. Our own firm has experienced year-over-year sales for Anonymous LLC’s, which are growing by triple digits. The types of owners are diverse and include everything from businesses you see when you drive down the street to those who own rental properties and would prefer their tenants utilize their property manager and not contact them personally.  Others include those who sell goods online through e-commerce platforms and do not want their names and home addresses published with their seller information. Some of our clients (or their families) were previously threatened, harassed, or stalked since their business ownership information was publicly accessible.

Yet other of our clients are abuse victims and want to own a company without disclosing their locations to their former abusers. A portion of our clients are of a higher profile, including celebrities, politicians, Fortune 500 executives and professional athletes who simply do not want to not have every business investment they make publicized.

I can tell you that all our clients place a lot of value in being able to avoid the massive amounts of robocalls and junk mail that commence once a company is publicly formed. Also, let me not forget “Asset Protection 101.”  Many of our clients are sent to us by their CPA’s, Estate Attorneys or Financial Planners since the main reason that LLC’s exist is to legally separate personal and business assets.

So, to be crystal clear, would you say it’s a misconception that anonymous business ownership is reserved for those wanting to do something illegal?

LD: (Laughs) Yes, that’s a complete falsehood. The urban legend or myth is that Anonymous LLCs are a way for people to evade taxes, for so-called Slum Lords to avoid accountability, or for “Dead Beat Dads” to flee their child support obligations. The list of presumptions goes on and I’m certainly aware of these criticisms. I suppose any procedure or law can be twisted or perverted to try to facilitate an unsavory outcome.  At the end of the day, criminals will find a way to commit a crime.  Remember Enron?  That was a very public company.  And I should underscore that Anonymous LLCs are not actually anonymous to financial institutions and the IRS.

Moreover, any licensed and upstanding attorney like myself would not facilitate unethical or criminal activity, which could result in disbarment and possibly jail time. These are two scenarios any legitimate and honorable attorney would want to avoid at all costs.  I cannot speak for those who are unethical, or even non-lawyers out there who are claiming to sell the same service.

Their objective need not be mal-intent when it comes to an Anonymous LLCs, but rather a feasible tool for legitimate businesses who seek privacy for justifiable reasons through legally-available means. I, myself, have been a business attorney for over 25 years and can tell you that lawyers are not who criminals call up ahead of time to consult with on the best way to break the law.

You mentioned that the facilitating law firm does play a role in the business owner’s enterprise. Can you expand on that?

LD: With respect to how we approach Anonymous LLCs, the structure is set up to place our law firm as the Registered Agent. This means communications to the companies we have formed flow through the law firm and we, in turn, forward those communications to our clients. It is the modern-day version of a business owner handing out their attorney’s card to anyone who has a question about the business.  If the concern is legitimate, it will be dealt with timely and professionally.  If the interest is simply to pry, solicit or harass, there is nothing there to see, so to speak. Those who have no legitimate need to inquire or poke around in the first place tend to move along, leaving our client and their business undisturbed.

So, why now?  If the concept of Registered Agents and “shell companies” have been around for decades, what is all of the recent attention about?    

LD: The foremost driver of the Anonymous LLC has really just been current circumstances. Modern technology makes it too easy for business and personal information to be searched and obtained. The toxic political, societal and other cultural environments also spur folks to seek out their adversaries and “make it personal”—all exacerbated by social media.  I do not feel like anyone welcomes the idea of having a public listing of their assets, investments, personal information, phone numbers, photos, addresses, family members and more on display for the entire world to see. Think about it; All this information, if not insulated in some way, is only a few mouse clicks away on, perhaps, all of us.

I unequivocally agree that businesses should be registered with the state and everyone should pay their taxes, but I disagree with the notion that the average citizen forgoes their right to privacy when they decide to form a business entity or invest their assets. I view the Anonymous LLC as a critical instrument helping owners conduct business without placing themselves or their families at risk of harm or harassment.

One would be hard-pressed to argue that the rapid sharing of ideas and information has diminished privacy on some level, if not profoundly. On the upside, the Anonymous LLC exists as one of the few legal, viable and readily-accessible tools available to protect it.

Forbes Business Council Member Merilee Kern, MBA is an internationally-regarded brand analyst, strategist and futurist who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. This includes field experts and thought leaders, brands, products, services, destinations and events. Merilee is Founder, Executive Editor and Producer of “The Luxe List” as well as Host of the nationally-syndicated “Savvy Living” TV show. As a prolific business and consumer trends, lifestyle and leisure industry voice of authority and tastemaker, she keeps her finger on the pulse of the marketplace in search of new and innovative must-haves and exemplary experiences at all price points, from the affordable to the extreme—also delving into the minds behind the brands. Her work reaches multi-millions worldwide via broadcast TV (her own shows and copious others on which she appears) as well as a myriad of print and online publications.

Connect with her at www.TheLuxeList.com and www.SavvyLiving.tv / Instagram www.Instagram.com/LuxeListReports  / Twitter www.Twitter.com/LuxeListReports / Facebook www.Facebook.com/LuxeListReports / LinkedIN www.LinkedIn.com/in/MerileeKern.

The September 11th attacks. The Great Recession. The COVID-19 pandemic.

All three of these seismic and tragic events have resulted in heartbreak to humanity, including loss of life and our emotional well-being—both individually and collectively. Of course, accompanying these global crises were monetary meltdowns reminiscent of the Great Depression that commenced in 1929 and lingered until the late 1930s.

After a “relatively” calm 70 years, the United States economy has suffered three devastating developments inside the last two decades, alone. There have been wars fought throughout the world and inflation escalations along the way, to be sure, but the start to the 21st century has suffered escalating and unusually concentrated economic calamities—some that have profoundly altered the very fabric of our lives, both personally and professionally.

Indeed, on the business front, such periods have been among the most—perhaps the unequivocal most—trying of times. Amid current circumstances as COVID-19 rages on around the globe, I recently connected with internationally renowned business restructuring executive James “Jim” Martin, founder of ACM Capital Partners with offices in Charlotte, Denver, and Miami.

Having spent the last three decades leading international middle-market companies through periods of distress and transition to actualize stability and growth, Martin is uniquely well-positioned to share insights on how business can rally to best assure a “COVID-19 comeback.”

No stranger to corporate chaos, during Martin’s own three decades as a globally-regarded turnaround expert, he has reportedly created and restored nearly $1.5 billion in value to lower middle-market companies; raised an additional $1 billion in capital; and managed mergers and acquisitions in excess of $500 million—all collectively representing his company restructuring portfolio valuation in excess of $3 billion.

Today, as the coronavirus continues to wreak havoc on business operations far and wide, take heed that there are various key strategic and creative tactics that can help businesses not only weather the storm, but even emerge stronger and more financially secure on the other side. Here’s what Martin had to say.

First, before addressing the current COVID-19 situation, what can you tell us about how you’ve helped companies navigate previous rough waters?

Relative to the September 11th attacks back in 2001, I’ll share a representative example of a strategic pivot that didn’t just help a company survive, but actually drove profit. After that horrendous event, I stepped in to assist a large aviation maintenance repair-and-overhaul facility whose revenue had been cut fully in half immediately following the attacks—the result of many carriers permanently parking older aircraft (including the 727 fleet).

The sizable challenge presented was to maintain a 1,000-person labor force while allowing the industry the necessary time to recover. To do so, we created a captive subcontracting company to which we transferred one-third of our labor force. During our troughs, we contracted this labor to our competitors and, during peak periods, we utilized this labor for ourselves. Thus, not only were we able to retain our skilled, well-oriented labor force during the recovery, but that very staff actually provided additional, supplemental profit. The end result was that we sold the business for $138 million, which provided our new investors with a 33% internal rate of return.

Less than a decade after 9/11, amid The Great Recession in 2008, I entered another industry that proved to be among the most brutalized by a global economic downturn: automotive supply. My client was a key supplier to the “Big 3” U.S. auto manufacturers.

At the start of 2008, the industry forecast was the production of 18 million vehicles in North America. Come summer, however, it was clear the automakers would not come near reaching that forecast due to the financial crisis. This did not come as a complete surprise to us, though, because—amid our firm’s protocols—we had had already fully immersed ourselves in our client’s industry and employed forecasting tools alerting us of trends … this one in the wrong direction. So, we were privy to the situation well before management and others within the industry.

By late June 2008, we instituted cost-cutting maneuvers and furloughs that enabled the company to withstand the industry’s brutal second half of ’08 that would result in two of the “Big 3” automakers filing for Chapter 11. Despite the industry producing less than half—as few as 8 million—of its original vehicle-production forecast, our client not only survived, but ultimately grew and prospered.

Turning attentions to COVID-19, what do you feel is integral for businesses to survive and recover?

For businesses to recover from the coronavirus shutdown, it’s going to take a two-pronged approach: both financial and human capital. Starting with the financial, it will be a “loan-ly” world for those not well-versed in the intricacies of SBA, PPP and other “economic disaster” lending. Consider how expeditiously those programs were rolled out. Then consider how even more quickly they were scooped up. Did anyone really read those loan documents in full, or even halfway through, initially—or even to this day?

My guess is at least half of the companies receiving COVID-19 related loans took a very “CliffsNotes” approach to these agreements. The result is there’s a solid chance funds were used incorrectly, which is going to make a lot of the loans, shall we say, less “forgivable.” For example, if your company’s payroll roster is shorter today than it was pre-virus, the portion of the loans forgiven is likely to be less.

And while your mind may rush to claiming ignorance and throwing yourself upon the mercy of the government to which you already pay taxes, realize that third-party capital is likely to participate in this market through securitization. This means that thousands of SBA loans could be bought, then packaged to be sold to the secondary market, at a discounted rate, no less. If this happens, understand that the purchasers will have the full intention of holding their borrowers (i.e. small business owners) to paying back 100 cents on the dollar.

So, those companies who received loans and are required, but unable, to pay them back in full may be exposed to either foreclosure or, worse, a “loan to own” scenario. In other words, much like the agreement that comes with your big-tech user agreements, like those prompting users to “click agree,” the fine print matters.

What this means to recovery is that, once again, cash is king: gather it; preserve it; cease lines of credit; liquidate what you can; negotiate costs down with suppliers. And if your company had a healthy bottom line pre COVID-19, then a professional familiar with these trenches can help you look to refinance or bring in equity.

With all of that said, the key to a COVID-19 recovery is going to be adhering to the rules of a lender’s road, as well as the ability to navigate the red tape when you veer off that road. If you have read all the fine print and properly managed your loan, congratulations! You’ve acquired some really cheap capital. For those who didn’t do their research, however, this road to recovery likely will need some paving.

What about the human capital you mentioned?

Yes, and then we arrive at the human capital. Lots of companies today are excessively top-heavy. Remember the part about removing emotions from this process? Companies that quickly recognize cuts need to be made will be better positioned to recover than those who dawdle. Again, compiling and preserving cash is going to best position a business for recovery.

This is an instance where it’s especially beneficial to know when to pull triggers (best if earlier than others) and to make decisions that are not based on emotions—a tall order for many CEOs, which is why many turn to turnaround experts. However it’s undertaken, what’s certain is that reducing human capital is painful, but it is also often necessary and almost always beneficial.

The upside is that, when the virus no longer exits, businesses can already be well-positioned for a fairly quick recovery. Maybe not v-shaped sans a vaccine, but quick relatively speaking due to the downturn having been so specific to one singular causing factor.

Tell us a bit about your role as—and general value of—a turnaround expert when turmoil strikes a business.

During times of difficulty, owners and executives can greatly benefit from specialized knowledge that’ll help them best navigate those unchartered waters that are often entangled in a lot of red tape. So, turnaround experts bring to the table a litany of tried-and-true “been there, weathered that” experience and expertise.

There’s simply no substitute for engaging with a partner whose entire mandate is ensuring your company’s survival and success during some of the most grim and challenging times it might experience—those professionals who are willing to spend sleepless nights figuring out how to ensure the company meets payroll; who’ll work around the clock to keep the company’s doors open; and who can tackle challenges without being hindered by emotions that understandably weigh on a business owner or manager. It takes this kind of specialized expertise, experience and grit to lead companies through periods of distress and transition, to stability and growth.

Forbes Business Council Member Merilee Kern, MBA is an internationally-regarded brand analyst, strategist and futurist who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. Merilee is Founder, Executive Editor and Producer of “The Luxe List” as well as Host of the nationally-syndicated “Savvy Living” TV show. Connect with her on Instagram / Twitter / Facebook / LinkedIN 

When it comes to leaders demonstrating vulnerability, executives are understandably concerned about optics. In fact, just Google the phrase “definition of vulnerability” and the very first result presented is: “Susceptible to physical or emotional attack or harm.” With this decidedly ominous and predominant denotation, it’s no wonder that it has taken a seismic shift—namely a threat against humanity, itself, in the form of a global pandemic—to prompt the C-suite to collectively get out of their comfort zone and reveal more of their true selves.

Fortune does favor the bold, as it’s said, and those leaders who’ve taken that leap of faith to reveal a more humble and human part of themselves have hit perception pay dirt. Famed neurologist Sigmund Freud predicted as much, having famously mused, “Out of your vulnerabilities will come your strength”—a notion with a few interpretations and applications for business leaders. One is the intimation that the very act of exposing one’s true self inherently builds strength of character, proffering valuable self-improvement. Another elucidation, which can certainly exist in tandem with the first, is that operating in a more revealing manner will have an emotional impact on others, who will thus regard you more favorably, fortifying your support base. The idea here is that, by demonstrating vulnerability in your actions and choices, you as a person will be deemed courageous, approachable, relatable, honest, optimistic, transparent, grounded, or a litany of other highly coveted personal image pursuits.

Leaders who unabashedly show their vulnerable side are also often believed to be honorable. In this day and age, where heroes become zeros with the click of a mouse, there are few greater virtues than being considered to be someone who is fair; as someone who does the right thing—and not discretionarily, but always. Honorable leadership presents many opportunities to function in a more positively vulnerable way. For example, by asking more questions (and valuing the inputs) rather than dictating, as well as forgiving mistakes rather than punishing and then parlaying these situations into learning and growth opportunities for all involved, leaders gain invaluable respect and trust.

Of course, a leader being willing to wholly own and acknowledge their mistakes is upheld by many as being noble and can proffer major dividends with the people, but doing so can feel “against the grain” for leaders that are used to presenting a more polished and perfectionist front. Embracing this discomfort is advisable, however, since doing so can spur opportunity.

“People and organizations don’t grow in a zone of comfort; we grow, progress, and evolve in a zone of discomfort,” notes Bill Treasurer, founder of Giant Leap Consulting. “So, a leader has [to be a ] role model courage by doing hard, scary and challenging things and then help the rest of us do those things, too.”

Further, a leader conceding to fear or anxiety in the face of adversity can also be endearing to constituents.

“The more transparent a leader can be, the safer, more secure and more trusting those being led will feel,” notes Mike Cohen, founder of talent sourcing and recruiting company Wayne Technologies. “A leader who can share with their employees where they are, for better or worse, will be able to connect with their employees, gain that crucial buy-in to the mission and establish a sense of trust that will oftentimes increase retention even in the face of adversity.”

When a leader makes mistakes, it also presents an opportunity to not only score popularity points by admitting them, but also showcases an aptitude for being agile and knowing how to adeptly pivot as obstacles present. In fact, failure at large can make a leader that much more relatable, serving as a salient silver lining.

“I think it is courageous to fail,” says Camille Burns, CEO of Women Presidents’ Organization. “A leader’s ability to change after mistakes or failures inspires trust and motivates a team.  It is particularly important to be able to reset after a disappointing setback. You need to own what is not perfect. You also need to own that what you learned is a result of failure.”

This kind of admission and ownership also speaks to authenticity—another key perception point gained by leaders aptly displaying vulnerability, who are often regarded as being “real.” This involves operating (i.e., speaking, presenting information and making decisions) in a way that may not necessarily “reflect well” on themselves or their past decisions when taken at face value, but that upholds the spirit of honesty and integrity—even at the risk of undermining their own self-interests. Being willing to take that proverbial bullet for your people can perhaps inspire loyalty like none other. In fact, Kean Graham, CEO of AdTech company MonetizeMore, concurs that vulnerable leadership requires honesty, even at your own expense. He proposes that it’s a form of authenticity that “breeds followers who would die for their leader.”

Such principled behavior that’s modeled by a leader can (and should) even be contagious, suggests life coach Pamela Savino. “If people witness a leader’s willingness to step into vulnerable territory, harboring a spirit of authenticity and growth, they will be more willing to do so themselves…a leader’s actions set the tone and pave the way for others’ behaviors.”

In this vein, business executive Andrew Wiedner of Core Spaces also advocates the infectious nature of leaders who embrace their vulnerabilities, citing that, “When you’re unafraid to expose your own flaws and weaknesses, it inspires others to do the same, and allows trust to be built within your teams and organization.”

In fact, some assert that the kind of authenticity these vulnerable behaviors breed trumps bravery. “I think it’s important for leaders to appear courageous, but being credible and authentic are at least equally important … but arguably more so,” asserts Darren Roos, CEO of enterprise software developer IFS. “I think it’s important not to be afraid to show vulnerability at times like these because people want honesty and transparency more than they want bluster and bravado. It’s inevitable many will realize you don’t have all the answers and acknowledging this and retaining their trust will be more important than appearing infallible. A leader who is prepared to show their vulnerability and still show up to get the job done is more likely to be perceived as courageous as a leader who presents as a fearless idiot.”

Dr. Michael Provitera, Executive Leadership Trainer and author of the book “Level Up Leadership,” underscores the importance of authenticity, especially in the context of exuding a strong resolve. “Leadership courage may fail and it is important to be an authentic leader, understanding that failure is an option,” he says. “It happens and leaders must deal with it frankly and in an open manner … the key is to be an authentic leader that knows his or her courage limitations.”

Dr. Provitera further clarifies that when a leader knows their authentic self, not only do they project courage and honesty but, in doing so, also become more humane. “The key is to practice the habit of not having to be right all the time,” he says. In my own experience, this is sadly a difficult feat for all too many business leaders.”

When it’s genuine, showing vulnerability can foster a magnificent mélange of respect, admiration, empathy and loyalty that cultivates a strength of leadership that simply cannot be achieved or emulated any other way. It’s mass bonding in a highly pure form, which is what makes the effect so powerful and indelibly worthy of pursuit.

This article originally appeared in Fast Company.

Forbes Business Council Official Member Merilee Kern, MBA is an internationally-regarded brand analyst, strategist and futurist who reports on noteworthy industry change makers, movers, shakers and innovators across all B2B and B2C categories. This includes field experts and thought leaders, brands, products, services, destinations and events. Merilee is Founder, Executive Editor and Producer of “The Luxe List” as well as Host of the nationally-syndicated “Savvy Living” TV show.

Connect with her at www.TheLuxeList.com and www.SavvyLiving.tv

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