In New Mexico, it is easier for the assets of the LLC to be liquidated to satisfy a judgment.
In most states, the liquidation protections given to LLCs does not usually extend to single member LLCs.
They are running a business like everybody else and are looking for the best return on investment they can get.
Their return on an investment in a case is a function of how strong their case is, and how many assets there are to satisfy a judgment if they win.
If a case has already been filed, the only way that your personal assets will be discovered in some states is if punitive damages are involved.
This means that the opposing party is seeking more money in compensation than the harm you actually caused to teach you a lesson.
Thus, any assets held by the LLC would not be used to satisfy claims of creditors and would remain under control of the member of the LLC.
Fortunately, there is only a one-time fee of and the cost of an is about 0 per year, so those costs are almost immaterial.
If possible, think about making the New Mexico LLC the sole member of a separate LLC formed in another state, rather than registering as a foreign LLC.
Protecting your assets is not about hindering, delaying, or defrauding creditors, it is simply about making sure that the proper procedural steps are taken before a creditor can reach your assets, like showing the proper level of proof.
The procedural steps can often increase the cost of attaching those assets.