How to Form an LLC in New Mexico

New Mexico is a popular state for establishing limited liability corporations (LLCs). A New Mexico LLC is affordable. It is also the only state that allows you to create an anonymous LLC. This protects your assets and privacy. This guide will help you save time, and provide information about the steps involved in setting up an LLC in New Mexico.

What to do before you set up a New Mexico LLC

Before you move forward with your LLC plans, there’s some things you need to do. Here are some things to keep in mind before you start your new company.

Set a realistic budget

New Mexico’s LLC filing fees are $50. However, you will be charged additional fees for hiring a company to assist you in forming your LLC or acting as your registered agent. The fees you pay will vary depending on which company you hire and what services they provide. Make sure you budget for the services that are important to you.

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Check the availability of LLC names

Nobody wants to open an LLC only to find out that the name they want is already in use. A new business name cannot be identical or similar to an existing business name in New Mexico. Before you file your LLC paperwork, make sure to check the business search portal of the Secretary of State for availability. If you don’t find the term you searched, you can move on.

Register Your Business Name

Although it is not necessary, you can reserve an LLC name and keep it for up to 120 days so that you have exclusive use. Once the window expires, however, your hold cannot be renewed. After completing the form, send it along with $20 to the New Mexico Secretary Of State Office, 325 Don Gaspar Suite 300 Santa Fe, New Mexico 87501.

Appoint a Registered Agent

To receive legal or official documents, LLCs in New Mexico must have a registered office and agent. An employee or you can be your agent. As long as you are a resident of New Mexico and have a physical address within that state, P.O. boxes do not count. Boxes do not count.

Do not worry if appointing or stepping into a role is not right for you. A company can be hired to act as your agent. Depending on the company offering the service, the typical agent fee will cost between $100 and $300. You can ensure you get the best deal by reviewing testimonials and asking specific questions about the services that you want to purchase.

File Your New Mexico LLC Forms

The type of business you are filing an LLC form and the fees required to submit it will determine which forms and fees you need. The filing process for domestic entities can be completed online by creating an account. In-state LLCs cost $50.

Online filing is not possible for foreign entities (outside-state). They must instead mail their Certificates of Registration forms the Secretary of State. Foreign LLCs must also have a certificate from the originating state that they are in good standing. The form and $100 fee must be sent to the New Mexico Secretary Of State, Business Services Division at 325 Don Gaspar Suite 300 Santa Fe, NM 87501.

All money orders and checks should be made payable to the “New Mexico Secretary Of State” or “NMSOS.”

After Establishing Your New Mexico LLC

There are some other important details that you need to take care of once your LLC is established in New Mexico. These are the most important things to do in order to get your LLC started.

Register for an Employer Identification Number (EIN).

Most businesses must have an federal EIN. There are some exceptions. It is a great alternative to your Social Security number and keeps it safe from potential fraud or exposure. EINs can be obtained for free from the IRS website. EINs can sometimes be called a Federal Tax Identification Number or Federal Employer Identification Number (FEIN), but they are exactly the same thing.

All New Mexico businesses need to register with the New Mexico Department of Taxation and Revenue. You will be issued a number depending on which state taxes apply to your business after you register.

Get a Business License

To legally operate your business, you may need to obtain licenses from the state or your locality. Certain New Mexico counties and cities require that businesses have a general business licence. The state also licenses certain professions and industries. A few industries are also licensed and regulated by the federal government.

For your LLC, create an Operating Agreement

New Mexico law makes LLC operating agreements mandatory. Although they are not mandatory in New Mexico, they are a good idea. They provide the foundation for your LLC’s financial and member obligations. A well-thought out operating agreement for your New Mexico LLC will help to ensure its legitimacy and good standing. You don’t have to make one. They can help prevent confusion and internal disputes.

Most Frequently Asked Questions

What is an LLC?

A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.

Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred as a “pass through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C-corp (C-corp) or S-corp (S-corp). Small business owners prefer LLCs because of their simplicity and flexibility.

What is the cost of a New Mexico LLC?

For domestic LLCs, there is a $50 charge. Foreign LLCs have to pay $100.

How do I create an LLC in New Mexico

New Mexico’s domestic LLCs can complete their formation online. For foreign LLCs, they must first download and complete the Certificate of Registration. Then, they need to mail their paperwork and payment to the Secretary of States.

Do New Mexico LLCs file annual reports?

New Mexico, unlike most other states, does not require LLCs file annual reports.

What tax flexibility can an LLC offer?

LLCs can be taxed in a variety of ways: as partnerships, sole proprietorships, C corporations, or S corporations. This allows LLC members to reduce their tax burden.

Note: To form an LLC in your state, you can do the filing paperwork yourself or hire an LLC formation service.
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