What if I get a personal judgment against me as a member?
One of the benefits of the New Mexico LLC is the asset protection it allows the LLC from the members and managers as well as the preservation of assets inside the LLC, to protect the LLC from the members and managers personal problems.
The standard LLC operating agreement and articles of organization will not protect the LLC from its members to the fullest extent available under the New Mexico LLC law. Our custom drafted New Mexico LLC articles of organization and New Mexico LLC operating agreement are specifically drafted to protect you as much as possible within the law.
If you get a judgment against you personally and you own a membership interest in a New Mexico LLC, the creditor will try to compel the Court to award it your membership interests.
Section 53-19-32 of the New Mexico Statutes states a few things of interest:
Section 53-19-33 discusses the rights of an assignee to become a member:
Section 53-19-35 discusses the rights of a judgment creditor of a member:
Basically, you're pretty well covered. The only LLC with better Statutes is Wyoming. The thing that is missing from New Mexico law is hammering down a few more specific details. The thing that is great about Wyoming LLC law is that it specifically states that the "ONLY" remedy of a creditor is to get a Court to award a judgment against the member's distributions. New Mexico does not specifically state this, so some could argue that someday a Court could interpret these laws differently and pierce the corporate veil in an extreme fraudulent case. In written laws, the more specific they are, the less room for random interpretations there are. Overall, the New Mexico LLC is a little cheaper on an annual basis, and a little more private than the Wyoming LLC, and has REALLY good asset protection laws that govern it.
Northwest Registered Agent, Inc.
Santa Fe, NM 87505
Santa Fe County