Kathryn,

New Mexico LLC (but not Corporation!) is famous for being a useful tool in arsenals of asset protection attorneys. There are at least 3 reasons that, combined together, contribute to this status:

1. You never need to submit any information about the members.

2. There is no annual fee or report to file with the state. That means the LLC cannot be administratively dissolved because you forgot to pay something to the state.

3. Its very cheap to form, and because there is no annual fee its very cheap to maintain.

There are other states that do not require listing members, and there are other states that allow cheap formation or no annual maintenance, but New Mexico has this favorable combination of all three, in addition to a relatively favorable legal framework.

From what I read a typical use of such LLC would be to hold assets such as a car. As far as I understand, since its practically impossible to establish through public records who owns the LLC, you as the owner of the LLC (and as a result – the car) become slightly less vulnerable for law suits where the suing party would seek to get to all your assets.