Why the Rich Are Not Using LLCs Anymore (And What They're Using Instead)

Why the Rich Are Not Using LLCs Anymore – Offshore Structures in 2025

The ultra-rich are replacing outdated LLCs with stealthier offshore foundations and trusts in 2025 for better privacy, control, and tax strategy.

Why the Rich Are Not Using LLCs Anymore (And What They're Using Instead)

In 2025, the wealthy have started walking away from traditional LLCs. While Limited Liability Companies (LLCs) were once the go-to structure for asset protection and tax planning, they're now viewed as outdated — and in some cases, risky. So why the shift?

LLCs Are No Longer “Low Profile”

Thanks to advances in AI-driven data tracking and transparency laws, LLCs—especially in the U.S.—are no longer private. Beneficial ownership registries now expose members’ identities in jurisdictions once considered “safe.” This has driven high-net-worth individuals (HNWIs) to explore better structures with more discretion.

What the Ultra-Rich Are Using Instead

Rather than U.S.-based LLCs, here’s what many are shifting toward:

Offshore Foundations – Jurisdictions like Panama or Liechtenstein allow for wealth separation from personal name and tax-friendly inheritance planning.
Trusts Anchored in Asset Protection Jurisdictions – Such as the Cook Islands, Dubai, and Nevis, where disclosure is minimal and control can be retained discreetly.
Private Interest Foundations – With no shareholders and no disclosure requirement, these beat LLCs in legacy and privacy planning.

One structure rapidly gaining popularity in 2025 is the U.S. Anonymous LLC through doola, particularly for those needing U.S. payment access without compromising privacy. But for real asset defense? HNWIs are going beyond U.S. borders.

Tax & Compliance Are Driving the Shift

LLCs are still subject to IRS scrutiny, FATCA compliance, and even local state franchise taxes. Meanwhile, properly structured offshore foundations or trusts can eliminate this exposure entirely.

What You Can Do Instead

If you're still using an LLC and want better privacy, stronger protection, and more compliant tax efficiency, consider these:

StartGlobal – For fast U.S. LLC setup with EIN + Stripe bank access.
doola Anonymous LLC – Recommended if you still need a U.S. LLC but want better shielding.
LegalZoom – Great for legal trust drafting if going the offshore route.

Related Reads

Stop thinking in LLCs. Start thinking in legacy-level structures.

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