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New Mexico Limited Liability Company - FAQ

Disclaimer: The information contained herein is not to be considered legal, tax or investment advice. Consult your legal, tax or investment professional before implementing any of the ideas published in this site. By accessing this site you explicitly agree to hold harmless the operators and other users from any liability arising from your use or misuse of this information.

1. How does the Invisible LLC compare to Nevada Corporations or Delaware Companies? The Invisible LLC is established in New Mexico and offers greater benefits than Nevada and Delaware at a fraction of the cost. In fact, no other state offers the degree of privacy and low cost. A few of these benefits are anonymity, legal protection, and flexibility. The Invisible LLC is easier and less expensive to maintain compared to other entities while maintaining equivalent liability protection. Both Nevada and Delaware require Annual Fees and Reports but the Invisible LLC does not. Nevada LLC's require personal information and Nevada Corporations involve hiring nominee officers and directors if you want privacy. The Invisible LLC does not have these restrictions.

2. Do I need a Tax ID Number for my company? Typically only if you are engaged in taxable activity, have employees, or if you need a Tax ID number for banking purposes. You basically have three options/tax elections when applying for an EIN for the LLC:
1. File as a single member disregarded entity: This is for one owner (husband and wife are considered one owner). With this choice you do not have to file an LLC tax return. You simply list any profits/losses on your personal tax return. The single owner can also be another LLC or entity.
2. File as partnership status: This is for LLC's with more than one member/owner and it requires that the LLC file an annual informational tax return using IRS Form 1065. Taxes are still paid at the personal level.
3. File as corporate status using Form 8832 which means that the LLC will have to file a separate tax return and pay its own individual taxes separately. In conclusion, #1 above works best for most people but please seek competent tax advice from your tax professional.

3. Can I use an Invisible LLC to avoid taxes? Invisible LLC's can be operated so that they have no tax liability as pass through entities. Members of the LLC are responsible for reporting their share of profits on their personal tax return and paying the taxes that they are liable for - if any. A limited liability company is a powerful tool that can help you minimize taxes. Simply having your own business can be one of the most powerful tax shelters available since it allows you to take numerous tax deductions that are otherwise not available at the personal level. Consult your tax adviser if you need advice concerning your personal tax situation.

4. Do I need to file Annual Reports or pay Annual Fees to the State of New Mexico for my Invisible LLC?
No, unless you make physical sales to New Mexico Residents.

5. Do I need to pay Gross Receipts (sales) taxes to New Mexico? Generally speaking, only if you transact physical business in New Mexico. Visit:
  and consult your tax adviser for more information.

6. Do I need to file personal or business tax returns to the State of New Mexico? On the personal level: Generally, only if you are a resident of the state of New Mexico and receive income through your LLC. On the business level: Generally, only if your LLC derives income from within New Mexico. Visit http://www.tax.newmexico.gov/Businesses/Gross-Receipts/Pages/Home.aspx
  and consult your tax adviser for more information.

7. How many Invisible LLC's can I own? There is no limit. In fact, it is highly recommended that you split up your major catagories & assets among multiple layers of Invisible LLC's.

8. What is an Operating Agreement? The Operating Agreement is a private agreement between the owner(s) of the LLC. It specifies how the LLC is to be operated. We provide Sample Operating Agreements when you purchase an Invisible LLC from us. This document is only disclosed to those that you wish to.

9. Are you sure there is no public record of who owns the LLC? Absolutely! Not even the State knows who owns the LLC unless you choose to disclose that to them.

10. What else can you tell me about the Invisible LLC? The Invisible LLC is a low-profile, extremely affordable (some asset protection entities are priced in the tens of thousands which is totally unnecessary), and is a top shelf asset protection tool. It is highly regarded by those of us seeking ultimate asset protection and privacy.

11. If I set up an Invisible LLC, do I also have to file or register it in my home state as well? It depends on how you will be using the LLC. The rules vary for different types of businesses but, if your LLC is a holding company, or if it will be holding title to real estate you will likely not need to register it in any other state. Most states, if not all, only require you to register as a foreign LLC if you meet their definition of transacting business within the state. It is relatively easy to structure a LLC so that it does not meet the definition of transacting business. You will receive a list of "Business Registration Exclusions" with your purchase. If your business meets the registration requirement consider having separate Invisible LLC own it. This can allow you to maintain the privacy and asset protection benefits of the Invisible LLC. If you will be opening a bricks and mortar business with a storefront, you will most likely need to register your LLC with the state where it will physically be located. In this case, you might use a separate LLC to act as a holding company.

12. In your opinion is the Invisible LLC better than a Land Trust, Living Trust or Irrevocable Trust? Yes, in most cases. Combining an Invisible LLC with an Irrevocable Trust makes it even more powerful. A trust requires a Trustee, a Settlor, and Beneficiaries. This takes a little extra effort to set up and the problem is that someone else knows your business (the Trustee) and you have to pay them even if payment is only in the form of increased love and affection toward a family member or friend who does it as a favor. You also have to trust this person because they have power to convey the assets of the trust. Generally, trusts must also be set up with a limited duration of existence. Invisible LLC's can be set up to have perpetual existence. Most trusts, including land trusts and living trusts, are revocable trusts. This means that a creditor can force you to revoke the assets that you transferred and bring them back within their reach. An Irrevocable Trust means that you relinquish ownership of the asset to the Trustee which means a creditor cannot force you to turn over the asset.

13. If I place assets in an LLC, and these assets are included in my will, if my plane crashes, how is this dealt with by the courts since I don't own the assets? There are two ways that this can be handled: You actually own the LLC (like shares of stock in this case they are called Membership Interests). These Membership Interests are assets and they can be included in your will or owned by a living trust. To help enable a convenient transition to your heirs elect a trusted friend/relative (whoever you want to control the asset after your death) to be a Co-Manager or Successor Manager of your LLC's. Structure the LLC so that the Members (owners of the LLC) are third persons or entities (such as another Invisible LLC). This is written into your Operating Agreement. After your death, the Successor Manager can show the bank the death certificate and they take over as signer of the account (you can also add them as signers while you are still living which can avoid later complications). Because they are now the Manager of the company they have the power to bind the company. This means they can buy, sell or transfer any assets of the company including deeds (real property) and personal property. Your Member Interest, if any, will still be subject to tax and inheritance laws that are applicable to you.

14. I spoke with my insurance agent about putting my vehicle in LLC and they said my insurance would go up. My question is there any way around rising insurance rates? If asset protection (of your vehicle) is your only concern then you can leave the car in your name and have your LLC put a friendly lien on it (the vehicle will need to be free and clear before you can put a friendly lien on it).

15. I'm also looking into buying a house soon and was curious , should I buy the house in my name then move it to a LLC, or put it into a LLC to start with? If you are getting new financing in your own name it is most likely that the lender will want your name on the loan and title. In this case you would wait until after purchasing the property in your name and then you can deed it over to your LLC subject to the existing mortgage. You can also just keep the property in your name and give an Option to Purchase to the LLC. When the Option to Purchase is recorded against the property a lien is created. This serves to help protect your equity in the property.

16. Should I take care of all of the transactions (signing papers etc.) for purchasing the house or should I get someone else to do that so I keep my privacy? Partially answered above. When buying a property you can sign on behalf of the company as manager. Most deeds and mortgages (that are recorded in the public records) only show the name of the buyer which is the LLC. You can also designate someone else as manager for the day and simply terminate them after they have signed the necessary documents.

17. How do you go about putting your house into the Invisible LLC? Would I just go to the title company and put it on the deed and take my name off? Are there any fees involved besides the title company's fee? Hire an attorney to do this for you. You will have the attorney fee and a recording fee.

18. How do I avoid paying a transfer fee and/or avoid a new property tax assessment when I deed my property out of my name and into the Invisible LLC? Each state is different and some states have transfer taxes. You can usually avoid these fees by showing the transfer agent (or tax assessor/county clerk) that you are still the beneficial owner of the LLC. You can tell them you are changing title for asset protection and estate planning purposes. This is done when you take the deed down to be recorded in the county where your property is located or it may require a visit to the tax assessor. If you wish, at a later date, you can transfer the ownership of the LLC to someone else. This now becomes a personal property sale instead of a real property sale by transferring the LLC, the property goes with it to the new owner of the LLC.

19. When I transfer my real estate from my name to the LLC do I have to worry about the due on sale clause that is written into my mortgage? Send the lender a letter and let them know that you are transferring the property into an LLC for estate planning purposes and that, if they object, to let you know in writing within X-number of days otherwise, you will proceed with the transfer. Save this letter. Note: Make sure and add your LLC as an additional insured to your homeowner's insurance policy and confirm with your insurance agent that you will still be covered. Side note: Banks do not have any one at the courthouse checking to see if title transfers. It is when you cancel your hazard insurance that they are notified by the insurance company that the policy has been terminated.

20. How to I put a "friendly lien" on my real estate? The simplest approach is to grant an Option to Purchase to the LLC. Record the Option Agreement. This creates a friendly lien on the property.

21. Where do I go to get copies of my real estate deeds? You should have copies of your deeds in the paperwork you received from the title/escrow company when you closed on the purchase of the property. Your mortgage/trust deed documents and Title Insurance Policy should also list your legal description and names as they appear on the title.

22. Can the Registered Agent receive mail for me? No. The Registered Agent does not receive or forward mail unless the LLC is served legal papers. We recommend that you rent a mail box with a street address (ie. The UPS Store) in your area to use for mail receiving purposes.

23. What IRS Reporting Requirements do I have for my Invisible LLC? If you are subject to U.S. tax law you will have various reporting requirements (see www.irs.gov). Since everyone's situation is unique, you are encouraged to consult with your tax adviser regarding your personal situation. Generally speaking, a "single member" LLC is treated as a "disregarded entity" by the IRS and it has no reporting requirement. Instead, profits and losses are to be reported on your personal tax return. A husband and wife are considered "single member". According to the IRS, LLC's with more than one member must file a Form 1065 annually with the IRS. The penalty for not filing this form is $50 per year, per member. Again, consult your tax professional for tax advice.

24. Also, how do you put a "friendly lien" on an automobile? The vehicle must be free and clear. If it isn't then the current lender is holding the title and you will be unable to put another lien on it. To put a lien on the free & clear vehicle you must mail or take the title down to the DMV as the Manager of the LLC. As the lender, let them know that you would like it reflected on the title. They will re-issue the title with the lien in favor of the LLC. Typically they will mail the title back to the LLC at the address you designate for it.

25. Tell me again, why should I get the Invisible LLC? Your Invisible LLC is a powerful asset that can help you protect your privacy and keep your assets from those who seek to take your property without your voluntary consent.

26. Being I am a resident of my home state and I will be forming an Invisible LLC and will be conducting my business in my home state, what details are generally required to be provided to the state in which I will be conducting my business? It is best to see if you can structure your business so it doesn't meet the definition of transacting business within the state that way you would not have to register it in your home state. Your order comes with a list of Business Registration Exclusions. If you can't find your personal loophole then we would suggest operating your business through a sole proprietorship or other entity from your home state and then using the Invisible LLC as a holding company which holds your assets but not your business.

27. If I choose to sell my Invisible LLC to a friend, or another LLC, can this transaction remain private? Can the new owners identity remain private? What would be the process? Absolutely, simply deliver the Articles of Organization and amend the Operating Agreement to show the new owners. You would also want to change the names of the Managers on the Operating Agreement as well as on any bank accounts. Note that certain tax and legal events may be triggered so make sure to consult your legal and tax advisers before proceeding.

28. How do I put my car into an Invisible LLC? To transfer title, you must first own it free & clear. Otherwise the lender is holding the title and you will not be able to transfer it until it is paid off. Next, sign a Bill of Sale to the LLC and sign the back of the title. Take it down to the DMV as the new owner (you are the Manager of the LLC) and treat it just like any other vehicle purchase.

29. In the formation of the Invisible LLC, how is the bank account handled so that the owner(s) of the LLC retain their anonymity? Total banking anonymity is not possible but privacy is. So, if you want anonymity, learn how to use crypt-currencies like bitcoin, etc. For asset protection we recommend you only have a bank account to cash checks and not to store money. Learn more Here.

Establish an Invisible New Mexico Limited Liability Company and take advantage of the benefits it affords:

Limited Liability

Flexible Ownership Structure

No annual fees or reports to the State

Pass-through Taxation - Own your assets anonymously

No hassle Privacy - your name is not listed on the Articles of Organization

Run your Households as businesses thru using accounts receivable and payables

Perfect for online and world-wide independent businesses and affiliate/Network marketers

Become Invisible and Judgement proof - "Hide" in plain sight behind your private Corporate Veil

$295 Includes State filing fee, all supporting documents, and 3-years of Registered Agent Service *fees!

*This package alone makes our 'Invisible New Mexico LLC' cost-Free!