If you own a house, boat, car, bank account, stocks, and other stuff it can be taken away from you.
If you own a car and cause an accident you have personal liability.
Lawyers and attorneys will look up to the public records to find what you own. If you own a lot on your name, you can expect a lawsuit, but if there is nothing you “own” they will most likely move on to the next case.
It is wise strategy to protect your assets from creditors, attorneys and others.
New Mexico LLC
You can use New Mexico LLC to hold all of your stuff. Why, what’s in it for me you ask? There are several advantages why you want New Mexico LLC.
First is privacy. New Mexico is the only state, that doesn’t publish the owner of the LLC. If you hold an asset in New Mexico LLCs, others can’t find out which assets you own.
You can use New Mexico LLC to pay for your bills too, such as phone, internet and other services, which you don’t want to be traced back to your name.
Second, Limits liability. Each asset should have its own LLC. Let me give you an example. You borrow your car to a friend, who got drunk and caused an accident, where several people got severely injured. Your auto insurance covers only specific amount of money, lets say up to 100.000$, or nothing at all, since your friend was drunk when driving. If you owned a car on your name, you could be on the line for millions of dollars liability.
But if car was owned by a New Mexico LLC, whose only asset was the car, only that damaged car can be used to cover financial expenses. Your friend however will be left with the bill.
There are no annual filings, no annual reporting or licenses. You have to maintain a registered agent and that’s all to be in good standing.
Easy transfer, if you sell lets say a car, you have to transfer through DMV, you have to pay a tax on the price, pay for new registration and waiting in line for hours. But, if your New Mexico LLC owns the car, you just transfer New Mexico LLC to the buyer. All other details are kept out of transaction.
Hide your assets, attorneys will look up to what you own and make their decision based on your ownership. If you own a lot of things, it means you can pay the lawsuit, but if there is nothing on your name, they will most likely move on to the next case. The more the New Mexico LLC owns, the less attorneys will see and less likely bring in lawsuit against you for whatever reason.
Good for location independent business. If you want to protect the anonymity of your internet business or blog, or just hold your investments privately, New Mexico LLC is the best way to protect these assets.
Other strategies, New Mexico LLC can protect your assets in many other ways, above are just couple of examples.
Things to know
You maintain privacy, your name and address never has to be associated with the LLC.
Cost is very low, it is cheaper to maintain multiple New Mexico LLc, that one LLC in most other states. You don’t have to pay fees, report and no annual registration cost apply.
Find a company which specializes in forming New Mexico LLC. It is a lot of easier than you think.