How to Skip Trace an LLC
A significant percentage of investment properties are owned by LLCs, trusts, and other entities rather than individuals. When you skip trace a property owned by "Smith Capital Holdings LLC," the provider cannot return a phone number for an LLC — it needs a person's name. This creates a gap that many wholesalers struggle with. Here is how to bridge it.
Why investors use LLCs
Understanding why investors use entities helps you trace them. The primary reasons are liability protection (if a tenant sues, only the LLC's assets are at risk), tax benefits (entity structure can optimize tax treatment), privacy (some investors want to keep their name out of public records), and estate planning (properties held in trusts transfer more easily).
The privacy motive is relevant to skip tracing because some investors deliberately use entities to avoid being contacted. This does not mean you cannot find them — the ownership chain is still traceable through public records — but it does mean the information is one step removed.
Step 1: Secretary of State lookup
Every LLC, corporation, and limited partnership must be registered with the state where it was formed. The Secretary of State website for that state maintains a searchable database of entity filings that typically includes:
- Entity name and type
- Date of formation
- Registered agent name and address
- Officers, managers, or members (in some states)
- Filing history and status (active, inactive, forfeited)
The registered agent is often the LLC's owner or their attorney. In many cases, the agent's name and address give you enough information to skip trace the individual behind the entity. Search the state where the LLC was formed, which is usually (but not always) the same state where the property is located.
Step 2: Cross-reference the mailing address
The mailing address on the property's tax records tells you where the LLC receives correspondence. If the mailing address is a residential address, the person living there is likely the LLC's principal. If it is a P.O. Box or registered agent's office, you need the Secretary of State data to find the individual.
When multiple LLCs share the same mailing address, they are almost certainly controlled by the same person. This is a common pattern: one investor creates separate LLCs for each property or group of properties, all mailing to their home address. Investor search tools can identify this pattern automatically.
Step 3: Skip trace the individual
Once you have identified the individual behind the LLC (from Secretary of State filings, mailing address analysis, or registered agent information), skip trace that person using their name and personal address. This is a standard skip trace and should return phone numbers and email addresses like any other lookup.
If the Secretary of State records only show the registered agent (which might be an attorney or registered agent service), you have two options: skip trace the registered agent and call them to ask for the LLC owner's contact information, or look for other data points that connect the entity to an individual.
Step 4: Alternative data connections
When direct methods fail, look for indirect connections:
- Property manager listings: If the LLC's property is listed for rent on Zillow, Apartments.com, or Craigslist, the listing contact may be the owner or property manager. The property manager can connect you to the owner.
- Other properties: If the LLC owns multiple properties, check if any of them were purchased in an individual's name before being transferred to the LLC. The individual's name from the pre-transfer deed gives you a trace target.
- Deed history: Review the deed chain. The LLC may have acquired the property from an individual with the same last name (a common pattern when investors move assets into entities).
- Court records: Lawsuits involving the LLC may list the individual member or manager by name.
- LinkedIn and social media: Search the LLC name on LinkedIn. Sometimes the owner lists the entity in their profile.
Business skip trace services
Some skip trace providers offer business-specific lookups that start with an entity name and return the associated individual's contact information. These services use a combination of Secretary of State data, tax filings, and proprietary databases to make the connection. They typically cost more per lookup than individual skip traces but save significant manual research time.
When evaluating business skip trace services, test with entities where you already know the owner. If the service consistently returns the correct individual, it is worth the premium. Check whether the results include property portfolio data alongside the contact information — this context helps you understand the investor's activity level.
Trusts are different
Properties held in trusts (revocable living trusts, land trusts, etc.) are traced differently than LLCs. Trusts are not registered with the Secretary of State in most states, so there is no public filing to search. The trust document itself is private.
For trust-owned properties, your best approach is the mailing address. The trustee (who manages the trust) typically uses their personal address as the mailing address for the trust's property taxes. Skip trace the individual at that mailing address. If the trust name includes a person's name (e.g., "The Smith Family Trust"), that gives you a direct trace target.
Batch processing LLC-heavy lists
If you are skip tracing a list of investors and 40-60% are entities, process them in two batches:
- Batch 1: Individual-owned properties. Submit directly to your skip trace provider with name and address. Standard process, standard hit rates.
- Batch 2: Entity-owned properties. First, research each entity to identify the individual behind it (Secretary of State, mailing address analysis). Then skip trace those individuals as a separate batch.
This two-step process takes more time but dramatically improves your hit rate for entity-owned properties compared to submitting LLC names directly to a standard skip trace provider.