A relative newcomer to the LLC market the New Mexico LLC is attracting a lot of interest on account of its unparalleled privacy features. (Principally, ownership information does not have to be revealed at registration and there is no requirement to file an annual return).
And as typical with an LLC a New Mexico LLC is treated by the American Tax authorities as a partnership for tax purposes ie provided all income is distributed to members by years end the LLC is not liable for tax either in New Mexico (“NM”) nor to the US Federal tax authorities.
Prime features of the New Mexico LLC Include:
1. Low Cost: New Mexico has the lowest government filing fees in the US for an LLC
2. Low Maintenance: There is no requirement to file an annual report.
3. Easy of set up: The Company can be incorporated simply by filing Articles of Organization.
4. Privacy: A nominee can be listed in the Articles as Organiser
NEW MEXICO LLCs BENEFITS
New Mexico LLCs offer distinct benefits:
• One-time filings
• You only need to form the LLC in New Mexico. There is no other government maintenance or licenses to file after you complete the Articles of Organization.
• There is no disclosure to the authorities of owners or managers details
• The address at which company records are to be kept (“ie the “Principal Business Address”) can be anywhere in the world
• New Mexico LLCs do not have annual reports.
• Low government fees
• A NM LLC may be managed (ie Directed) by either a member or non-member manager.
• A NM LLC may be managed/directed by another LLC/Company.
• Simplicity – No annual reports needed and simple Articles of Organization requirements.
• Asset Protection – New Mexico has some of the best limited liability coverage for an LLC (explained in depth below), especially when it comes to protecting LLCs from other members.
THE UNIQUE ADVANTAGES OF A NEW MEXICO LLC
Forming a limited liability company (LLC) in the state of New Mexico has unique advantages: simplicity of operations, federal and state tax exemption, protection of your assets from personal liability, and ease of raising capital with no investor ceiling. A New Mexico LLC combines the taxation benefits of a sole proprietorship or partnership, and the limited liability of a corporation, for the best of both worlds. New Mexico LLC formation is regarded as a separate legal entity, with the advantage of protecting the owners from business liability.
Simplicity
A New Mexico LLC is uniquely flexible and simple to form. The cost is low, and maintenance is minimal. The LLC has the advantage of setting its own policies on corporate governance such as: capital or asset contributions by the members; taxation planning; accounting model; recordkeeping and minutes-keeping; frequency of member meetings; management structure; officer appointments; buy-out provisions; management rights, duties and obligations; date of LLC dissolution; and resolutions, voting rights or operational duties and requirements.
Tax Exemption
A Mexico LLC is tax-exempt under state and federal law. It has the advantage of taking the limited liability features of a corporation and combining them with “flow-through” tax benefits of a sole proprietorship or partnership. Your business losses, profits and expenses flow through the company to the individual members to avoid being taxed on both a corporate and individual level. Your LLC corporation has the flexibility of setting its own dividend policy, rather than having to follow mandatory distribution of earnings on a dollar-per-share basis.
Asset Protection
A New Mexico LLC offers the unique advantage of the same benefits of asset protection as Nevada corporations and offshore entities, without the premium prices and high maintenance fees. Under the LLC, your personal assets are separated from corporate liability and any potential future creditor action. To protect your privacy, only the following are required for the Articles of Organization: the name of the company and the address of the principal office; the name and address of the registered agent; and the duration of the LLC. Membership interests may not be seized to satisfy a creditor’s claim against the member. This is due to a statutory provision known as “charging order protection”. The creditor can only receive the right to allocations of profit and loss that the member would otherwise receive. However, a properly worded LLC Operating Agreement will allow for profits to be retained within the company and “expensed out” or funneled to the member via alternative means (such as LLC management fees.)
Unlimited Investors
The advantage of raising capital for a New Mexico LLC is that any number of investors can contribute, including individuals, trusts, pensions or even other LLC corporation entities, unlike a sub-chapter S corporation, which is limited to 75 shareholders. By building your capital base and with an operating history, you have an advantage in securing various credit facilities.
OCI New Mexico Incorporation Packages
At OCI we believe in giving you more for your money than would the average IBC formation service. Hence included in the incorporation package for your New Mexico LLC is/are the following-
Services:
Unlimited name availability inquiries
Advice from an experienced International Corporate Lawyer on how to structure your company
Preparation (overseen by a lawyer) of application to incorporate the company
Preparation (overseen by a lawyer) of the company’s Operating Agreement
Preparation (overseen by a lawyer) of the company’s Articles of Organisation
Attending to filing incorporation request with the company registry
Attending to payment of government filing fees
One year’s Registered Agent service in the country of incorporation
One year’s Registered Office service in the country of incorporation
Mailing address in the country of incorporation
Delivery of Incorp pack by international courier (ie DHL/Fedex/TNT etc)
Unlimited free legal consultations for 12 months with our In House Lawyer ( call us anytime at no cost for advice on how to structure/document transactions, how to administer your Company, how to move money, compliance requirements etc)
Documents included in your Incorp pack:
Certificate of incorporation
2 sealed/stamped copies of the company’s Operating Agreement
2 sealed/stamped copies of the company’s Articles of Organisation
Resolution appointing first Manager
Resolution appointing first Members
Up to 5 Membership Unit Certificates
Resolution to open a bank account
Resolution to rent an office
Resolution/s to engage a Phone, Internet & Website service provider
Resolution to hire a staff member/s
Resolution to appoint a company lawyer
Resolution to appoint a company accountant
Resolution appointing you as the company’s authorised representative in commercial negotiations
Resolution issuing a Power of Attorney in your favour
Agreement authorising you to represent the company in commercial negotiations
Power of attorney authorising you to sign documents on behalf of the company
Register of Managers
Register of Members
Expression of wishes (ie an “Offshore” Will)
Lawyer authored User Guide (“How to Use Your Offshore Company”)
Price (all inclusive): $US $650
With tax effective offshore company management (ie including Professional Corporate “Nominee” Director, Shareholder & Company Secretary): $ 1,050
From 2nd year costs $450 (+ $400 if Nominees are required). Included in the annual fee from 2nd year are the following services:
Attending to payment of government filing fees
One year’s Registered Agent service in the country of incorporation
One year’s Registered Office service in the country of incorporation
Mailing address in the country of incorporation
Delivery of Incorp pack by international courier (ie DHL/Fedex/TNT etc)
Provisions of New Mexico business address
Attending to and updating the Directors register
Attending to and updating the Share register
Attending to and updating the Asset register
Recording details of any changes to Directors or Shareholders
Unlimited free legal consultations for 12 months with our In House Lawyer ( call us anytime at no cost for advice on how to structure/document transactions, how to administer your Company, how to move money, compliance requirements etc)
If you’d like to know more about New Mexico LLCs Please Contact Us
Every effort has been made to ensure that the details contained herein are correct and up-to-date, but this does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission.
