LIMITED LIABILITY COMPANIES (LLCs)
By JJ Luna
Copyright 2009
An LLC is similar to a partnership but without the necessity of actually having a partner. It also resembles a corporation but without the onerous bookkeeping details and annual meetings. Although LLCs can be used in banking and business, just as corporations are, they are offered on this site purely for the purposes of privacy. And when it comes to privacy, only one state meets my requirements. New Mexico.
If you are already familiar with how New Mexico LLCs are used, scroll down to the end and order now. Otherwise, read on:
Why New Mexico for LLCs?
To form a New Mexico LLC, the only information required for the Articles of Organization is:
(1) the name of the company and the address of the principal office.
(2) the name and address of the resident agent (to be explained shortly), and
(3) the duration of the LLC (often December 31, 2099)
A New Mexico LLC need not include the names of members. The mailing address of the principal office can be anywhere in the world. And unlike all other states, New Mexico LLCs do not require any annual reports. Thus, changes in membership take place in total darkness. Neither are there any annual fees. Compare this with California's annual $800 minimum franchise tax!
A resident agent is required for each New Mexico LLC
The laws in all states require that both corporations and limited liability companies have a resident agent in that state who can receive official communications and send them on promptly to the owner or manager of the company. (Example: If a lawsuit is filed against a New Mexico LLC, the documents will be sent to the NM resident agent.) This must be a real street address, not a mail-receiving agency.
How much is the annual fee for each New Mexico LLC?
Law firms and others who specialize in this field often charge at least $165 per year. However, the two organizers that I recommend charge just $99 per year. The first three years for the resident agent are included with each purchase of a NM LLC.
What happens if, after three years, the annual fees are not paid to the agent?
If you ignore the reminders to renew, or if you cannot be found because you moved and failed to notify the agent, then the resident agent will resign after a reasonable length of time. The New Mexico LLC will then be dissolved by the state.
How are New Mexico LLCs used for privacy?
The most common uses are to hold title to vehicles and real estate that are owned outright. Occasionally they are also used to own contracts or rent mail boxes or safe deposit boxes. (My contract with Saint Martins Press, for the book How to Be Invisible, is in the name of a New Mexico LLC.)
Which agents do you recommend?
Either Rosie Enriquez in Washington State, or Kitty McMenemy in Ohio.
Rosie specializes in pre-formed or “shelf” New Mexico LLCs, keeps a good supply on hand, and can ship the same day (M to F) you contact her. She also forms custom NM LLCs.
Kitty specializes in custom LLCs, the kind where you choose the name and the New Mexico LLC is then ordered. (Allow up to six weeks for delivery.) She also sells NM shelf LLCs.
Which agent charges the least?
Until June 30, 2009, the price had always been $495 for either a shelf or a custom New Mexico LLC with a listed "principal place of business" in Spain's Canary Islands. However, in view of the current recession, and at my urging, prices have been slashed, at least for the present time. For example:
Pre-formed (shelf) New Mexico LLC with Canary Islands, Spain address:
Rosie, $325 Kitty, $350
Custom (special order) New Mexico LLC with Canary Islands, Spain address:
Kitty, $350 Rosie, $375
Who’s the best?
You’ll not lose a dollar with either one. I guarantee it!
Order from Order from
KITTY ROSIE
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