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LIMITED LIABILITY COMPANIES (LLCs)
Copyright 2007. JJ Luna You will often hear that a limited liability company is something "new," but this refers only to the United States. In Europe, LLCs have been used for more than a century. Think of an LLC primarily as a partnership, but without the liability and in some states (now hear this!), without the necessity of actually having a partner. An LLC resembles a corporation but without many of the onerous bookkeeping details and annual meetings. In New Mexico, 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, which is usually 50 years.
This state does not require the names of members or managers. (Managers, in any case, are not recommended.) The mailing address of the principal office can be anywhere in the world. There are no 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!
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. This must be a real street address, not a mail-receiving agency. (If the resident agent resigns-such as for non-payment of his annual fee-then a new resident agent must be found within a short time. If not, the state will dissolve the company.)
PURCHASING A VEHICLE WITH AN LLC:
LLCs are ideal for titling cars, trucks, tractors, motorcycles, snowmobiles, boats, utility trailers, RVs, travel trailers, pickups and campers. Many persons work with three companies, such as in this example:
King of the Road LLC
Royal Majesty LLC
Boy Toys LLC | Husband's Jaguar
Wife's Lexus
Boat, snowmobile, and motorcycle |
READ THIS CAREFULLY:
I strongly recommend NM LLCs for owning a vehicle. They also work well for holding real estate, although some title companies may require an operatiing agreement that identifies the owner. I do not, however, suggest in any way that a NM LLC should be used for doing business in another state, or opening a bank account in another state. If you feel you must use an LLC for either of those purposes, consult with an expert and form the LLC in your own state.
WHAT WILL IT COST?
If you use a lawyer to form the company, figure the cost to vary between $1,500 to $3,000, assuming the lawyer will do it at all. Many will not, as they do not feel qualified to answer your questions and draft a proper operating agreement. An attorney in Fort Lauderdale, Florida, sends out a video offering his services in setting up limited liability companies, and quotes a price of $2,000, which is about average.
However, an arrangement has been made with Kitty McMenemy, an incorporator and organizer in Columbus, Ohio, for an especially low price. She is totally reliable and her records are confidential beyond belief. Contact Kitty with any questions (theirishgirl@infosecguru.com) or click on the link below for the LLC order blank.
| New Mexico Limited Liability Company | $99 | | Resident Agent, three years @ $99 per year | $297 |
| | Total | $396 |
The cost of the resident agent, after the first three years, is $99 per year. If you prefer not to list your U.S. address on the application (because the address goes up on the NM public website), you may opt for a legitimate principal place of business overseas. There is an extra one-time fee of $99 for this but it is well worth it!) =====================================================
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