A Beginning Guide to Setting Up Your Privacy Starting with Your Address, Banking, a Nominee and a New Mexico LLC

Invisible Business Profile

In general the idea behind the things that I am going to explain here is to help you run any low-profile business by keeping your name out of the picture and to remain a private owner, so that you have less of a personal chance of being the one served a lawsuit or better yet named in a lawsuit. You will, therefore learn how to obtain an undetectable New Mexico LLC and how to run the affairs of the business in another name. It can be in the name of a nominee only, or with a fictitious business license citing the nominee as principle. However, a better way is to use a LLC. In fact some persons use two LLCs, with the first one doing business and the second one as the sole member of the first. But to keep your privacy intact and lessen your chance of lawsuit you will have to start doing things differently while remaining in control legally and ethically. I will first begin with discussing how to go about the setting up of your own private mailing address, than a private banking account and why you should consider a New Mexico LLC.

Why Mail Forwarding?

A Mail Forwarding service provides you or your company with a private mailbox number at an address to receive regular letter mail that does not disclose your personal residence. Some people purchase this service because they do not have a U.S. address and would like to receive mail in the United States. Others purchase mail-forwarding service because they own a home-based business and prefer to list a private mailbox as their business address instead of their home address. In any case, subscribing to a mail forwarding service will provide your company with a permanent business address for regular mail correspondence and if done right start personal privacy as a company owner.

Receiving Mail at Your Present Home Address

As an independent contractor it is best to keep your private life private from that of your public business affairs. In order to accomplish personal privacy you must stop receiving mail in your personal name at your personal residence and immediately begin turning it in to a mail forwarding address. But youre probably wondering where should this mail go? You should certainly not send the mail to any permanent address you will use in the future. Here are some options: 1. If you presently have a P.O. Box that was rented in your own name, and you gave your present address, then forward your mail to that box. Then when forwarding is no longer needed, close the P.O. Box. 2. If you still receive mail at a commercial mail-receiving agency (CMRA), forward the mail there temporarily. Then close your account there as soon as convenient. 3. Have your mail sent on to your place of business if you have one, or perhaps to a friend who is in business. 4. Forward your mail to a friend or relative preferably across the country. Tell him or her to keep the magazines, toss out the junk mail, and to re-mail the rest back

to you at your new (alternate) address. You havent got one yet but be patient. Its coming, its coming. 5. Find and use a nominee to set up your (CMRA) under their name. See below How to Find and Use Nominees for who might be an ideal candidate. Mail Forwarding With the exception listed below, we suggest you not check the little box marked Permanent, If you do, your name will go into the Postal Services National Change of Address list, and this list of persons that have moved is sold to the commercial mail-list folks, and thus your name and new address will go into countless computers. Instead, check the Temporary box and give a date when this is to end. When that date arrives, notify the post office that you are moving away and do not wish to have any mail forwarded. Mail will then be returned to sender. Exception If you wish to throw others far off the trail, then do file a Permanent Change of Address. I suggest the actual street address of a mail drop in northern Alaska or-if you already live in Alaska- a mail drop in South Florida or Hawaii. Here is an easy way to do it: 1. On the internet go to the website www.mbe.com, the home page of Mail Boxes Ect., or to www.postnet.net, the home page of PostNet, or go to www.theUPSStore.com. Look up the location you want. Or look up one of their locations in the phone book, call them, and ask them to give you the address at such-and-such a location. 2. On your forwarding-address card, fill out your name, the street address, an apartment number, city, state, and ZIP. Example: Your name is Joe Debtor and you want your bill collectors to think you moved to Alaska. If the address you pull up on the Internet is The UPS Store # 2852 607 OLD STEESE HWY, STE B FAIRBANKS, AK 99701-1706 Forward your mail to Jose Faith 607 OLD STEESE HWY, STE B FAIRBANKS, AK 99701-1706 If you do this, then this is what will happen. Your mail will be forwarded to the address shown, but because this is a commercial mail receiving agency, and no # sign followed by a number is included after the word STE B, the envelope will be stamped with a message similar to the one that follows and will then be returned to the sender. UNDELIVERABLE

COMMERCIAL MAIL RECEIVING AGENCY NO AUTHORIZATION TO RECEIVE MAIL FOR THIS ADDRESSEE Will your local post office, the one forwarding the mail go to Alaska, to find out and know what is happening? No, because the mail does not come back to them. Will the bill collector you are trying to avoid realize you didnt go there, after all? Not necessarily. The stamp on the envelope does not say No Such Person. It merely says the CMRA is not currently accepting mail for you. Now obtaining your new address or alternate address that you should be using from this time forward for privacy we will call your ghost address. A ghost address is a street address that has no connection with your actual place of residence. Before discussing how to obtain the ghost address it is first important to understand mailboxes, public and private. Mailboxes, Public and Private By public, I mean the boxes you can rent at a U.S. Post office. By private, I refer to commercial mail-receiving agencies (CMRAs), such as Parcel Plus, Packaging Store, Mail Boxes Ect., Associated mail and Parcel Centers, Pak Mail Centers of America, Postal Annex, and PostNet Postal, UPS Store and business centers. Hopefully this topic will show you a fast and simple way to achieve a basic level of privacy and security from creditors. If you do not already have a post office box, you may wish to obtain one for your personal mail. Then you could rent a private mailbox from a commercial mail-receiving agency and use a company name for business mail, magazines subscriptions, and deliveries from FedEx and UPS. Until such time as you move, of course, your present street address will be in dozens-or, more likely, hundreds-of databases. However, from this moment on, you will never again give out your street address. Then, when you move and follow the advice here and further in this document you and your personal address should drop low below the radar of collectors, creditors, repo agents, Private Investigators and so forth. However, before making any quick changes you will want to be sure to understand all the information presented here in this document. Post Office Boxes If a choice is available rent a box as far away from your home as is convenient for picking up mail once or twice a week. The ideal situation-often the case if you have a long commute to work- is to have the box in another town or city. This is sometimes possible for those who live in twin cities. (If you live in South Salt Lake get a box in North Orem, if you live in East Minneapolis, get a box in West St. Paul.)

Advantages of Having a P.O. Box First and foremost, you avoid having to give out your street address. In addition: If you move to another location in the same area, there will be no changes to make for incoming mail. Your mail will be safe from thieves, no matter how long you leave it in the box. When you are on vacation, mail will not pile up at the mailbox at your home-clear signal that the occupants are away. Disadvantages of Having a P.O. Box The biggest single disadvantage of getting a P.O. Box is the process you have to go through. Until the end of the 1990s, it was fairly easy to rent a P.O. Box and retain your privacy. Since then however, this changed and is no longer the case. Thus: You must show two forms of ID, and one of them must show your current home address. (This violates the number one rule of privacy which is to never allow your true name to be coupled with your true home address.) If you list other persons who will also be receiving mail at this address, they, too, must now furnish two forms of identification. You must sign PS Form 1993 right next to this chilling statement: Warning: The furnishing of false misleading information on this form or the omission of material information may result in criminal sanctions (including fines and imprisonment) and/or civil sanctions (including multiple damages and civil penalties). (18 U.S.C. 1001) Fortunately, I dont know of P.O. Box holder who has ever been jailed for fudging on the applications, as long as the box was never used for any fraudulent purposes.

How to Find and Use Nominees

As you might know, an attorney filing a lawsuit may name anyone he pleases. If he is suing a corporation, he may also name the directors, the officers and even the part-time secretary who writes the checks. No matter how innocent you are, if you are named, you have to defend yourself, and that costs time, money, and extreme aggravation. So then, if you wish to remain anonymous as a owner of your business your name must not surface anywhere. It can be difficult to accomplish this but it is not impossible which is why we suggest that you use the help of a proxy or nominee. A nominee is someone who takes your place as the apparent owner or manager of your company, or who opens a bank account for you, or obtains your cellular telephone, or signs up for your utilities. Who might be a good candidate? You may already have someone in mind, but if not, here are a few suggestions: Any person who has not filed a tax return for a really long time, such as a homeless person.

A illegal immigrant A crazy drunk who sobers up just long enough to sign some papers in return for a case of beer. A relative or close friend who will do this as a favor Someone who owes you money, is not in a position to pay you back, and would act as a nominee in exchange for clearing the loan. You could also use their tax ID number for income gains and leave them with a tax in the amount that they owe you. A really young person or really old person especially if from out of the country from a place like Spain or Mexico.

Whatever the case you should choose someone who has no assets, otherwise known as judgment proof Then, if a lawyer discovers there are no assets to recover, no lawsuit will be filed. Protect Yourself with a Written Agreement Here is a sample form below, although not drawn up by an attorney and because Im not a lawyer this is just a sample, but nevertheless it is clear and understandable. The forms clauses are merely an example. They can be changed to suit your purposes. I do greatly urge you to have your nominee sign it before a notary public. Keep the original in a safe place.

Limited Power of Attorney Example

BE IT KNOWN that I, [name of nominee], the undersigned, do hereby grant limited power of attorney to [you who wants it], as my attorney. My attorney shall have full power and authority to undertake and perform the following on my behalf: 1. 2. 3. 4. 5. 6. 7. Make deposits and write checks on my account at [name of bank] Form, amend and cancel limited liability companies in any state. Send and receive letters, instructions, and e-mails in my name. Write letters make requests, and order and receive merchandise in my name. Accept payments on my behalf and sell deliver reports on [subject of reports]. Engage in any other legitimate business on my behalf including but not limited to the World Wide Web and receive payments in my name. Use funds sent to me for any purpose whatsoever.

My attorney agrees to accept this appointment subject to its terms, and agrees to act and perform in the said fiduciary capacity consistent with my best interests as he in his sole discretion deems advisable. This power of attorney may be revoked by me at any time, provided that any authority of my attorney until in receipt of actual notice of revocation. Signed this ____day of__________, 20_____. ______________________________________ Signature of nominee, with name printed below. Subscribed and sworn before me on [date] by [nominee], to me known to be the person described in and who executed the forgoing instrument and acknowledged that he executed the same as his free act and deed. [Notary signature and stamp.]

Banking
Another factor in obtaining privacy is to have a private bank account. If you must have a U.S. Bank account and you dont have a social security number than you may still be able to open an account in your business name or through the use of a banking trust by using the assistance of a nominee such as a third party who will act on your behalf to open the account. Just remember that when cashing checks, do not use your drivers license for identification if you want to remain private because the bank will retain your driver license number or personal identification number if you disclose it to them. Rather, use your green card or passport, because: o It does not show a Social Security Number or Tax ID Number; o It does not show any address for you, not even the state or country in which you live; o Unlike through the Department of Motor Vehicles (or whatever name it has in your state, you cannot easily be traced with your passport number. If after presenting your passport, you are asked for your driver license, you could reply I dont use my driver license. Here is how this method of using a nominee works. Lets call your nominee Jose Faith. Jose will open a bank account in his own name. Here are the steps: 1. Choose an independent bank in a state where neither you nor Jose lives. This will isolate both of you from routine asset searches banks and other attorneys do. 2. Prepare Jose for obvious questions, such as Since you live in California, why are you opening this account here, in Wendover, Nevada? The answer might be Im thinking about moving here within the next 2 months. 3. Take cash of perhaps a $1000, purchase a bank cashiers check from a bank where you are not known, made out to Jose Faith. 4. Next, Jose practices a indecipherable signature, he than assembles the necessary identification, travels to the city where the bank is located, and opens a personal checking account which usually comes with a minimum order of checks with name and address printed on them. The bank then mails these checks to a legitimate address. 5. When the printed checks arrive in the mail, tear out the two checks with the highest numbers (so it appears the account has been used), along with a printed deposit slip. You will need these to order new checks from a mail order company such as Checks Unlimited (800-204-2244 www.checksinthemail.com). Use one of these checks to pay for the order and use the other one as the sample that you write VOID on, cross out both the name and the address on the sample check,

as well as the present number, Write in a starting number of 6001 or higher, so that the account will appear to have been established years ago. Above the deleted name and address initial in Jose Faith initials. The check mail order places usually only will mail to the address printed on the sample check, so do not try to have them sent to any other address. 6. When the new checks arrivehopefully enough to last you for years---Jose sits down and signs them until his signature starts to vary. Then take a break until he is ready to continue signing. 7. You of course keep all the checks, either well hidden or under lock and key. From this point on, you use these pre-signed checks in any way you please. (For deposits, order and use rubber stamps.) Although I prefer the printed checks that can be order by mail, many of people use their computer and printer to print their own checks which can be used as well by buying software at your local office supply store.

Limited Liability Company (LLC)

The best business structure for privacy ownership that we have discovered is an LLC. An LLC is a type of hybrid business structure that provides the limited liability features of a corporation with the operational flexibility and tax advantages of a partnership. It has become a popular choice for sole proprietors who are looking to incorporate for protection of assets or to secure additional loans. LLCs are one of the easiest and least expensive forms of ownership to organize. The Limited Liability Company is now recognized as a business structure in all 50 states and the District of Columbia. LLC owners are called members and can be individuals or other companies, including non-US citizens and non-US residents. LLCs profits and losses may pass directly to owners (no double taxation). For many start-up and growing businesses, the LLC may offer the best of all operating structures.

New Mexico LLCs

There are various uses of which to use limited liability companies. They have vast applications in business, banking, partnership, and asset protection worlds. When I mention or speak of LLCs, I refer specifically to a legal entity that has all of the following characteristics: 1. 2. 3. 4. 5. 6. 7. No one will know who owns it unless the owner tells them. It will be filed in New Mexicoa state that protects privacy. It will be managed by a single member. It will be kept in good standing by maintaining a resident agent. It will not be given an IRS identification number, such as a TIN or an EIN. It will not require an operating agreement nor the keeping of a set of books. It will list a business address that is not in the state where filed.

8. It will be filed by a specific organization skilled in the fields of privacy. 9. It will cost less than $150 to form, and less than $150 a year to maintain it. 10. The LLC name will never appear on a state or federal tax return. Income Tax Consequences The IRS treats a one-member LLC as a sole proprietorship for tax purpose; there are no income tax consequences. If Jose Faith happens to use his LLC for a part-time business, she will merely report earnings and expenses on Schedule C and submit it with his 1040 tax return. Repeat: the incomeif anyis listed on his personal tax return. Nowhere on the tax form will the name of her LLC appear. As far as the IRS is concerned, Joses LLC is invisible.

Frequently Asked Questions and Answers:

Why New Mexico for LLCs? To form a New Mexico LLC, 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 (often 100 years) A New Mexico LLC need not include the names of members. The mailing address of the principal office can be anywhere in the world. And unlike all other states, New Mexico LLCs do not require any 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! Why is a resident agent required for each New Mexico LLC? 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. (Example: If a lawsuit is filed against a New Mexico LLC, the documents will be sent to the NM resident agent.) This must be a real street address, not a mail-receiving agency. Failure to maintain a registered agent and registered office in the state of New Mexico may result in administrative dissolution (involuntary closure) of the LLC and revocation of its certificate of authority to conduct business in the state for having failed to timely answer claims. If that happens, the company would be liable to pay damages in a lawsuit without ever having the opportunity to defend itself. Rest assured, we will help you avoid costly legal mistakes by ensuring you receive all legal documents on a timely basis. We include at least six months of free registered agent

services with your LLC order. We have many years of experience handling critical documents and forwarding them to customers like you.

How are New Mexico LLCs used for privacy? The most common uses are to hold title to vehicles and real estate that are owned outright. Occasionally they are also used to own contracts or rent mail boxes or safe deposit boxes. Will you protect my privacy? ... if I get in trouble with the IRS or some other government agency, or if I use my LLC for any illegal purpose, or if I get sued for fraud, slander or whatever? If you plan to use an LLC for any such purpose, do not order your LLC from Rosie. Not only will she not protect you, your resident agent will immediately resign, with any remaining paid up years kept as damages. One question that many people have asked is, How can I prove I own the company, if my name doesnt appear anywhere? If ever there were a case where possession was nine-tenths of the law, possession of the Articles of Organization is it. The LLC is owned by whomever you say owns It.who can prove differently? The State of New Mexico doesnt know. The organizer doesnt know. No one will know unless you tell them! No shares are transferred, no owner was originally listed, and there is no annual report that could add additional information. Basically, having the original Certificate of Organization plus the Articles of Organization in your hand is the same as holding a postal money order that leaves the payee line blank. In fact, if I think back I cannot ever remember having to even show the original documents at all, to anyone. You would merely show up at a place like the DMV or a real estate title company with a photo copy of the Articles. Who is the agent? John Woodie-- no one else. Can a Non-Resident like a Mexican Immigrant open a LLC and obtain an EIN in New Mexico? As far as taxes go, after your LLC is formed you will need to obtain an EIN for it listing yourself as the responsible party (we can show you how to obtain an EIN without a Social Security Number). Also, closer to the tax period your accountant will be able to help you obtain ITIN (personal tax ID) that you would use to pay taxes on your US income. If you are the only member of the LLC then your LLC taxes will be filed on the same tax return as your personal taxes (the LLC in that case is called "disregarded entity"). What is a Federal Employer Identification Number? An Employer Identification Number (EIN) is a nine-digit number that is assigned by the IRS and used to identify taxpayers that are required to file various business tax returns. It may also be referred to as a Tax Identification Number or TIN.

EINs are used by employers, sole proprietors with employees, corporations, partnerships, LLCs, nonprofit associations, trusts, and other business entities. You need to obtain an EIN if you form an LLC. We can assist you with an application for an EIN or obtain one on your behalf for a small fee. You must provide a U.S. Social Security Number or Individual Taxpayer Identification Number (ITIN) for this service. What happens if I have an address change? If your contact information changes in the future, one or more steps may be required. At a minimum, you must notify us in writing of any changes to your permanent legal address, and you should also update the information in your internal company records, as well as with any department or agency with which your company is registered. Choosing a Business Name Many businesses select a name that identifies the type of service and a product offered or highlights a unique benefit or attribute of their business. For example, a business owner who sells spicy hot dogs might want to name the business "Firedogs". Since the name you want might not be available in your state, please provide an alternate name. If you do not have or cannot think of an alternate name, simply enter the word "call" and a business specialist will contact you in the event that youre preferred company name is unavailable. Entity name regulations vary by state. Generally, your corporate name must not match or be too similar to the name of an existing company registered in your desired state. The name must usually end with LLC or L.L.C.

Checking Order Status As soon as your order is received, we conduct a preliminary name search and submit the preferred available name to the state for formal approval. Final availability is determined by New Mexico State Public Regulation Commission at the time of filing. You can monitor the progress of your LLC order online at our website or by simply giving us a call. Order Status is updated as soon as we receive confirmation of the filing acceptance from the state. You will be notified by phone and/or e-mail should any questions arise with the order.