Posted 12 Sep 2010
Most people like stuff. We all need some stuff and some stuff puts the fun in functional. Houses, cars, boats, all of it is stuff, and everybody wants it. The more stuff and the more fun stuff you have the more risk there is that it will be taken away. So what should your asset protection attorney tell you about protecting that stuff? Should they tell you about New Mexico LLC registration for your stuff?
The world is not such a friendly place. Part of owning stuff is dealing with the liability that comes with ownership of stuff. If you own real estate, there are all kinds of liabilities that go along with any buildings or improvements on the land. There are also risks that someone will be injured on the land.
Owning a car means you have to be ultimately responsible for any damage that is caused by your car, even if you weren't driving it at the time. A severe accident can easily cause hundreds of thousands of dollars in damage.
Operating a sole proprietorship exposes you to personal liability for anything that happens as part of the operations.
Even your own personal stuff, like your bank account, your stocks, investments and other financial stuff are at risk if you are found personally responsible for anything that you do.
And ownership of any big stuff can easily be used as a way to track and find you.
Plaintiff's attorneys are smart. If they are doing their job of protecting their client's rights, they will search public records for stuff a potential defendant has. The more stuff you have, the more rights the opposing attorney can get paid to protect. Stuff makes lawsuits profitable.
Even having insurance is not enough. Most people only have the minimum insurance required. When damages exceed insurance coverage, the owner can be left with the bill. In many cases, this can be millions of dollars.
Having stuff can be a headache. Some people decide to get rid of their stuff. Others look to their asset protection attorney to help them.
You can reduce the risk to the stuff you own for a fraction of the cost of increased insurance coverage.
New Mexico LLC registration can be used to hold all of your stuff, both physical and financial. The best privacy and asset protection is to hold as few assets per New Mexico LLC as possible. Ideally, each asset should have its own New Mexico LLC. Here is just a few of the ways New Mexico LLC registration is good for you.
Privacy – New Mexico is the only state that does not ask for and does not publish the owner of the LLC. Every other state will require your name. Only holding an asset in a New Mexico LLCs will prevent anyone from tracing ownership to you. Plus, you can use the New Mexico LLC to pay for utilities, phone, internet or other services that you don't want traced to your name.
Limits Liability – When each asset has its own LLC, any liabilities created by the asset can only be satisfied by the assets of that LLC. Let's say you loaned your car to your mother-in-law. Without your knowledge, she had a glass of wine for dinner, and then ran into a school bus full of orphans. Several of the orphans were badly injured resulting in millions of dollars in medical bills. Your auto insurance only covers $100,000 in damages, and punitive damages, which are likely to be assessed, are not included.
If you owned your car personally, you might be on the hook for a big chunk of that multi-million dollar liability. If the car was owned by a New Mexico LLC, whose only asset was the car, only the wrecked car can be used to satisfy that part of the award. Your mother-in-law will be left with the remainder of the bill.
No Hassle – New Mexico LLC registration is a one time deal. There are no no annual filings, annual reporting, or licenses so there is absolutely no hassle after filing it. As long as you maintain a registered agent, the New Mexico LLC will always be in good standing.
Inexpensive – Many states charge hundreds of dollars a year to maintain LLCs in good standing. If they are not in good standing they are completely worthless as asset protection. New Mexico charges an extremely low one-time fee. Even the fees for a registered agent, which is necessary in any state unless you want to be the registered agent, are much less than the annual LLC fees in most states.
Transfer Assets Privately – If you sell a car, you usually have to transfer title through the DMV. You will have to pay a tax on the transfer price, pay the new registration, even if the old one was not yet expired, and wait in line for hours on end in the happiest place on earth. If your New Mexico LLC owns the car, you transfer the New Mexico LLC to the buyer. The DMV, re-registration, taxes and all kinds of other unpleasantries are kept out of the transaction.
Hide Assets From Unscrupulous Investigators – Plaintiff's attorneys will base their decision on whether to bring a suit based on whether the defendant has assets to pay the judgment. Otherwise, lawsuits would be an expensive hobby. A good asset protection attorney will make that stuff vanish.
If you have no stuff in the public record, all but the most legitimate claims against you will be dropped. The more of your significant assets you have in a New Mexico LLC, the fewer those attorneys will see, and the less likely you will have to defend marginal claims.
Hold Valuable Assets - So your 1998 Dodge Neon might not be a prime candidate to put under a New Mexico LLC, unless you loan it to your mother-in-law. Anything worth more than a few hundred dollars, or a bunch of stuff worth more than a few hundred dollars combined, will be perfect assets to hold in your New Mexico LLC.
Things like cars, trucks, trailers, boats, planes, motorcycles, jet-skis, recreational vehicles, houses, real estate, land, rental properties, commercial properties, bank accounts, stocks, bonds, other financial assets, collectibles, equipment, animals, and anything else of value or exposing you to risk.
Ideal For Operating Location Independent Businesses – Don't want Amazon to shut down your Colorado based affiliate account, want to protect the anonymity of your internet business or blog, or want to hold investments privately? A New Mexico LLC is the best way to protect these and other similar assets from disclosure and closure.
Lots Of Other Asset Protection Strategies – New Mexico LLC registration is the building block to construct many extremely powerful plans to protect your assets and wealth. This is only the beginning.
Your Name or address never has to be associated with the LLC.
The costs for maintaining multiple New Mexico LLCs is probably less than maintaining one LLC in most other states.
No annual registration, fees, reporting or other costs apply.
New Mexico has simply created at powerful vehicle for holding assets and for protecting privacy.
New Mexico LLC registration is a lot easier than you think. You don't ever have to visit New Mexico, sorry Bill Richardson. There are some good turnkey operations that will set up everything you need to operate your business for a very low fee. One of the best value for doing this is a company that specializes in forming New Mexico LLCs.
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The most effective way to start protecting your privacy and your stuff is to use multiple New Mexico LLCs to hold your assets. It is the easiest and cheapest way to get your assets off the grid. Visit the website of a company that specializes in registering New Mexico LLCs for just such a purpose. The privacy that LLCs can provide is excellent and choosing the right state can make it even more powerful.
