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Once registered privately, all personal information is hidden. A WHOIS search will reveal name and address of third party company that is holding private registration.
Private registration may not be as big a concern for companies. However, it can be very useful to individuals who desire to keep their personal and private information (address and telephone number) exactly that, personal and private.
Is it worth it to register privately? The answer to that question depends on how much you value your own privacy. For some, registering privately is no big deal. For others, who already have had problems with hackers, spammers and like, a private domain registration offers them additional security. At very least, it is helpful to know that this option does exist. Not all domain registrars offer this service, but it is growing in popularity.
Paul Stefanski develops Recommended Web Tools, a resource for beginners who are developing their own websites. Learn more about his recommended private domain name registration resource.