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How To Structure Your LLC

First of all, a New Mexico LLC is best used as a 'Holding' company that owns (holds) assets such as real estate, businesses, investments, etc. It is best not to operate a business with a NM-LLC but rather have the NM-LLC own & control the business entities you already operate. In other words, you transfer the ownership of your existing business entity (Corp, LLC, LP etc) into the NM-LLC. You still operate your business as usual but now all of the member units (shares) of your operating entity(ies) are now owned by the NM-LLC. As an added layer of liability insulation & anonymity the NM-LLC can then be owned by an "Irrevocable Trust" that you create. All of the original 'stake-holders' in the business that owned shares or member units in the existing entity are now named as beneficiaries in the Trust!  We provide a bulletproof Irrevocable Trust doc-template in your package.


Completing the New Mexico LLC Formation process:

Please note that we file and set up the 'Invisible' New Mexico LLC with totally anonymous registration filing for you! You will receive the originally stamped 'Articles of Organization' and the 'Certificate of Organization'.

Unlike most other companies, we only require the address we are shipping the documents to - NOT the intended NM-LLC Members or Managers names. To maintain your maximum privacy we only keep a contact email address on record - everything else is detroyed. This way we can honestly say we don't know who the owners are even under subpoena.

What remains to be done is for the member(s) to complete the NM-LLC 'Formation' by deciding on a management structure and then to create an 'Operating Agreement' and probably an 'Operating Agreement Memorandum '. Memorandums are used to allow the NM-LLC to interact with the public and businesses (open bank & investment accounts etc.) without revealing the LLC Members names or other 'ownership' info. It only names the appointed/elected or hired LLC Manager(s) information. To maintain privacy the mailing address for the NM-LLC and the Manager should be a rented mail stop such as UPS or Mailbox etc, that provides an actual street address - not a P.O. Box.  Copy that?

We provide bullet-proof Operating Agreements & Memorandums for both types of management structures. Don't worry it's easy. Just fill in the blanks with the information in 'Word' doc format and print - you're done.

For tax purposes the single member NM-LLC is considered a 'pass-through' entity. Meaning that whatever income the LLC may have is passed through to the owning member on the LLC/company. Whenever there are two or more members the NM-LLC is looked at as a 'Limited Parnership' taxwise and there is therefore an IRS Form 1065 (K-1) filing requirement for the NM-LLC to declare how much income and to whom what was distributed.

Not very anonymous 'eh? For this reason alone it is best to have only a Single Member NM-LLC structure. One popular approach to have an 'Irrevocable Trust' that you create be named the single Member of the NM-LLC and you would be the Trustee of the Trust. In this way the Trust 'owns' the NM-LLC and you control the Trust as the Trustee as well as being the Manager of the NM-LLC. A fully customizable Irrevocable Trust template is included with your purchase of an Ultimate Asset Protection Package. An in depth step-by-step guide on Irrevocable Trusts is provided with your purchase.

So, if you or the Trust are the single Member of the NM-LLC who is the LLC Manager? Well, in most cases you are. For instance, you are the only manager of the NM-LLC named in the Operating Agreement and you want to open a "non-interest bearing business checking account" for the NM-LLC (No earned interest = No IRS 1099 reporting! ) Then, create an 'Operating Agreement Memorandum' that names you or someone else as manager but does not reveal the actual ownership of the company. You then take the the Memorandum & all necessary documents including the assigned EIN to the bank and open only a "Small business non-interest bearing checking account "

We strongly suggest that unless otherwise required, that all NM-LLC's be structured as 'Single Member' and 'Manager-Managed'.

You then, as manager are the sole signer on the account. Yes, you must provide your name, address and SSN however, keep in mind that this information is kept strictly internal at the bank. The account is tracked by only the EIN assigned to the NM-LLC, Not your SSN. Remember, you are a "hired hand" with no liability to the company and the company can't be held liable for your actions either.

Important Note: It is critical to understand that this is NOT your company and that you only work for it as a representative manager. To maintain maximum privacy always conduct yourself with this in mind and never tell anyone "... my LLC does this or that..." Instead say "... the company I work for/manage does this or that..."
        Confucius say: 'The nail that sticks out gets hammered down...'

We suggest that unless otherwise required, that all NM-LLC's be structured as 'Single Member' and 'Manager-Managed' entities.

So, to sum it up with a check-list:

1) Decide on a management structure and...

2) Complete an Operating Agreement & O A Memorandum

3) Decide on a Private/3rd party mailing address (no P.O. Boxes! )

4) Obtain an EIN from the IRS - per instructions in your welcome email.

5) Open a 'Non-interest bearing' small business checking account

6) Create an Irrevocable Trust Agreement with a seperate address and if needed its own EIN & bank account

7) Transfer titles, deeds and other assets into the NM-LLC  by using written notes/contracts...

8) Breathe easier - your assets are protected!