How To Become "Invisible" And Legally Keep Your Assets Secret

Researched and written by: Brad Wajnman, Managing Editor

Americans are famous for a lot of things, but with well over one million practicing attorneys and a new lawsuit being filed every 30 seconds, they're internationally recognized as the most litigious society on earth.

Yup, the American legal system is so screwed up that there's even an annual award named after people who file the most outrageous and frivolous lawsuits nationally.

The Stella Awards, as they're called, are named after Stella Liebeck, the 81-year-old woman whose worldwide claim to fame was the successful suing of McDonald's for serving her hot coffee. In 1992, after buying the coffee, she took the lid off and put the coffee cup between her knees while she was driving.

She supposedly hit a bump or something and (surprise) got burned, so she sued McDonalds and won a $2.9 million settlement. Ever since that time, Stella has been the poster child for outlandish and ridiculous lawsuits and verdicts.

To many, the spilled coffee case optimizes everything that's wrong in America: people eager to blame someone else for their own actions (It's anybody's fault but theirs), and an entitlement-minded society that's so spoiled that it cries in sympathy over spilled coffee.

Now, of course there are legitimate cases where there was some kind of negligence involved, or where the plaintiff truly wasn't at fault and deserves an award, but my point is, anyone can sue anyone for any reason.

With law schools pumping out lawyers in record numbers (and the growing trend of 'wealth through litigation'), there's no shortage of legal vultures that are willing to work tirelessly on behalf of the greedy opportunists they encourage and represent.

The unvarnished truth is that if your assets aren't properly protected, all the wealth you work so hard to accumulate over your lifetime could easily be threatened and unjustly stolen by low-life societal parasites.

Entrepreneurs are generally in the highest risk category and have a one in three chance of being sued in the next 12 months, but the sad fact is, you don't have to own a business or be wealthy to be the target of an unjust lawsuit.

That's because most people dig "stuff"... I'm talkin' about houses, cars, boats, jewelry, etc. You name it, everybody wants it. Stuff is what makes lawsuits profitable.

And the more stuff you have (especially the fun kinda stuff like boats and cars) the more liability you have along with a higher risk that it'll be taken away from you.

You're at risk for pretty much anything and everything you do, which means your own personal stuff, like funds in your bank account, your investments, and other financial assets could also be lost as well. And if you own any really big stuff, public records can easily be used as a way to track and find you.

Too many people wait until they're "under fire" before deciding to take the necessary steps to protect their assets... and by that time it's usually too late.

John D. Rockefeller said: "Own nothing, control everything."

Plaintiff attorneys go for the "the low hanging fruit" (easy money) to compensate them for their time and effort, but they can't sue or take assets away from you that you don't own.

Asset protection is all about positioning your assets in such a way that they're out of reach of predators, lawsuits and even government intervention. The key is to "control" your assets without actually "owning" them and one of the most private and effective ways to do that is with what's referred to as an "Invisible" New Mexico Limited Liability Company (LLC).

Internationally, LLCs are the most common form of business entity. The roots can be traced back to Germany in 1892, but it wasn't until Wyoming adopted its LLC Act in 1977 that LLCs found their way to the U.S. Soon after, almost every state started offering LLCs as an alternative to Corporations.

And while the perception is that asset protection is just for wealthy individuals, the truth of the matter is, small business owners and individuals need it too.

Not only does a New Mexico LLC allow you to protect your stuff, but it can also help you become "invisible" in order to keep your assets secret.

Of course, there are lots of creative ways to use LLC's for structuring your assets - you're only limited by your imagination - but New Mexico offers some of the greatest benefits compared to other states (which I'll cover below).

Note: Although the majority of this information is primarily geared towards U.S. citizens, a New Mexico LLC can still be a useful structure for just about anyone in the world.

State privacy laws are always changing and some strategies that used to work well in previous years, no longer serve their purpose. For example, I used to think that that setting up a Nevada LLC or C Corp was one of the best business structures to own, since Nevada is very pro-business and doesn't share information with the IRS.

But what I uncovered through my research is that it's purely a myth that LLCs in Nevada or other states like Wyoming and Delaware offer substantial advantages over those formed in most other states.

The myth has been created (and fed) by those who sell LLCs in those states, and sometimes by those who simply don't understand what happens to an LLC in litigation against a member/owner.

The fact is, New Mexico LLCs offer all the benefits of Nevada, Wyoming and Delaware entities at a fraction of the cost. On top of that, no other state offers the degree of privacy and low cost that New Mexico does.

New Mexico LLCs are much easier and cheaper to maintain than C or S corporations, while offering every bit of liability protection. Both Nevada and Delaware require Annual Fees and Reports whereas New Mexico does not.

Also, Nevada LLCs require personal information and Nevada Corporations involve hiring nominee officers and directors. New Mexico doesn't have any of these restrictions. New Mexico also trumps Wyoming because Wyoming charges an annual fee of $50. New Mexico doesn't.

There's no limit to the amount of New Mexico LLCs you can own. Plus they can be used to hold ALL of your assets, both physical and financial. Ideally, it's best to split up your assets amongst multiple LLCs so that each asset has its own LLC attached to it.

Here are a few of the more popular ways a New Mexico LLC can benefit you:

Privacy — New Mexico is the only state that doesn't require the name(s) of the owner of the LLC. It also doesn't publish the name of the owner or the owner's address, so even the state won't know who owns the LLC unless you choose to disclose that to them. Every other state will require your name up front.

The only information required in the Articles of Organization for a New Mexico LLC is:

• The name of the company
• The name and address of the resident agent

The primary office mailing address for the LLC can be anywhere in the world. This brings up another point I want to touch on about personal privacy. When you give out your personal address, you open yourself up to all kinds of potential snoopers - like prying government agencies, nosy individuals (and even crazy stalkers).

One of the golden rules of privacy is to not "advertise" where you live. For example, a lot of people put their home address on their checks, drivers license, or by giving out their home address as their mailing/shipping address.

A New Mexico LLC can help you keep a low-profile by using it to pay for things like utilities, phone, internet, or other services that you don't want traced back to your name. You can then have all your mail sent to your LLC's mailing address and then forwarded to your home or P.O. Box.

Limited Liability — When each asset is held under its own separate LLC, any liabilities created by the asset can only be compensated for by the assets of that particular LLC.

Here's a hypothetical example; Let's say you loan your car to your brother-in-law, and without your knowledge, he has a couple beers for dinner and plows into a minivan full of kids on his way home. Pretty scary, but it happens.

If all the kids were injured, it could result in possibly millions of dollars in medical bills. If your auto insurance only covers $100,000 in damages, you could find yourself in some serious legal and financial hot water. That's because punitive damages - which are likely to be assessed by the parents of the kids - are NOT included in your coverage.

If a lawsuit is filed, the first people that are going to be named are 1) the driver of the car, and 2), the owner of the car. In this case, if your car was registered in your personal name, there's a good chance you could be on the hook for a big chunk of that multi-million dollar liability.

On the other hand, if the car was owned by your New Mexico LLC (and the car is the ONLY thing the LLC owns), then the plaintiff(s) can only go after the assets of the LLC itself (which is now a wrecked car!).

Hassle-free Registration— It's a one-time deal to register a New Mexico LLC. It becomes extremely hassle-free after filing it since there are no annual filings, annual reporting, or licenses required. The only requirement is that you maintain a registered agent. As long as you do that, your New Mexico LLC will always be in good standing.

Inexpensive — Some asset protection entities are priced in the tens of thousands (which is totally unnecessary). Plus, many states charge hundreds of dollars each year to maintain LLCs in good standing.

However, New Mexico charges an extremely affordable one-time fee. Compared to states like California that charge a minimum $800 annual franchise tax, this is a big advantage in and of itself.

But just remember, an LLC is completely worthless for asset protection if it's not kept in good standing. So even though no annual registration, fees, reporting, or other costs apply to New Mexico LLCs, you're still responsible for making sure they're maintained.

Privately Transfer Assets — Anytime you sell a car, the title has to be transferred through the DMV. That means you'll most likely have to stand in line with cranky people for hours on end, pay a tax on the transfer price, and then pay for the new registration (even if the old one hasn't expired yet).

But if your New Mexico LLC owns the car, all you do is transfer the New Mexico LLC to the new buyer. In other words, the DMV, re-registration, taxes, and anything else that you really don't want to have to deal with, are kept OUT of the transaction completely.

Hide Assets — In most cases, a plaintiff attorney's decision to sue will primarily be based on whether the defendant they plan on going after has enough assets to pay the judgment. If that wasn't the case, lawsuits would just be an expensive hobby.

Again, if all your significant assets such as real estate, cars, investments, etc. are held in separate New Mexico LLCs, they don't show up in the public records. It's the easiest and cheapest way to get your assets off the grid and out of sight.

Private investigators hired by plaintiff's attorneys will come back frustrated and empty handed, forcing them to give up. So with the exception of legitimate claims against you, you're therefore less likely to have any money-grubbing sharks frivolously coming after you if you don't technically own anything personally.

Hold Valuable Assets — Okay, so maybe your 1991 gas-guzzling Ford Explorer isn't a prime candidate to put under a New Mexico LLC (unless you loan it to your brother-in-law!). But in all seriousness, the general rule of thumb is any assets worth more than a few hundred bucks - or a bunch of stuff worth more than a few hundred bucks combined - qualifies to be held in your New Mexico LLC.

This list includes things like cars, boats, trailers, planes, motorcycles, jet-skis, recreational vehicles, homes, land, rental properties, commercial properties, bank accounts, stocks, bonds, other financial assets, collectibles, tools and equipment, and anything else of value that may be exposed to risk.

By strategically changing the way you hold your assets, you've effectively made yourself "judgment-proof."

Home Equity Protection — You may want to keep the title to your home in your own name, but a New Mexico LLC can still protect the equity you've built up. It's done through a little-known strategy called "equity stripping," which allows you to effectively "lock up" the equity you have in your home (or any other asset for that matter).

Your anonymous LLC will now hold a "mortgage" on your property, thus eliminating the equity that a potential "hostile party" can go after.

Here's how it works... suppose you have $100,000 of equity in your home that you want to protect. The first thing you'll do is form a New Mexico LLC. Then your LLC (on paper) "loans" you $150,000, secured by a second mortgage that's recorded against your property.

By having your LLC place a second mortgage on your property, you've been able to effectively "strip away" the equity by recording what's called a "friendly lien" against the property.

So, in the event you're sued, any judgment creditor will have to stand in line behind your LLC before they can get paid.

And because there's no equity above the $150,000 - you're essentially over-mortgaged by $50,000) - there's no equity left for a judgment creditor to go after.

Since you privately own the LLC, you also own and control the equity in your property.

And as the "manager" of the LLC, you have the ability to release the second mortgage at any time.

You can take it one step further with a little creativity and effectively "strip away" the equity from just about everything you own. To the public you'll look like you're up to your eyeballs in debt, while you privately control large amounts of equity.

Ideal for Internet-Based Businesses & Trading — A New Mexico LLC is currently the best way that we've found to protect the anonymity of your internet business or blog. It's also a great structure for keeping trading-type businesses private.

As far as tax returns are concerned, income to an LLC flows to its members, which can include U.S.-based or foreign individuals, and/or corporations, etc. U.S. citizens should find a good CPA who can advise you about tax filing obligations, particularly if you don't live in New Mexico.

Hot Tip — Keep "low risk" assets separate from "high risk" assets.

Like I said before, setting up multiple LLCs to hold your assets is the most effective way to start protecting your privacy and your stuff. But it's important to make sure that you're not mixing "low risk" assets with "high risk" assets when you're deciding how to split up the way you hold your assets.

For example, when you set up multiple New Mexico LLCs, you wouldn't want one LLC to own both your vehicles and your investment account(s). Ideally, each asset class should have its own separate LLC.

That means one for cars, one for investments, one for your home, etc. The more you want to protect each individual asset, the more LLCs you'll need to use.

Registering a New Mexico LLC is an extremely easy process.

The process of privatizing your life may seem overwhelming at first if this is all new to you, but if your situation isn't urgent, you can take baby steps and incrementally make small changes in the way you conduct your life. If you follow this strategy, you'll eventually become "invisible" to the public by having everything out of your own personal name.

It's important that you think of asset protection as a series of "firewalls." The more firewalls you have, the more secure you are. Of course, a good asset protection plan only works if it's put into place BEFORE it's needed.

Now when it comes to registering a New Mexico LLC, it's a lot easier than you might think.

There are a number of places you can order a New Mexico LLC from, but you don't want to order one from some cheap online "incorporation mill." They usually don't set things up properly and their Operating Agreements are NOT written with specific language tailored to privacy-minded individuals.

Out of all the options we looked into, The Invisible New Mexico LLC™ packages offered by KeepYourAssets.net really stood out. They've been providing turnkey solutions for privacy-seekers since 1997 and have a solid reputation in the industry.

The LLC formation is done in a truly anonymous way, and their prices are very affordable. They offer unlimited free email support and if needed, they're available for one-on-one phone consultations for a reasonable fee. You can also get several years of resident agent fees waived for free as well.

The bottom line with them is that they not only sell you the tool - they also show you how to use it for maximum privacy and protection.

Click here for more information...