Forming a Limited Liability Company (LLC) in New Mexico is an easy process, but it involves a few steps.
Start an New Mexico LLC for $0 + state fee
To form an LLC in New Mexico for free + state fee, we have listed 3 options to consider:
You can go online and visit the New Mexico Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
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Forming an LLC in New Mexico for $0 (DIY Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
Step 1: Choose a Name for Your LLC
The first step is to choose a unique and available name for your LLC. The name must include the words “Limited Liability Company” or the abbreviation “LLC”.
You can check the availability of your desired name on the New Mexico Secretary of State’s website.
Step 2: File Articles of Organization
Next, you need to file the Articles of Organization with the New Mexico Secretary of State. This document officially establishes your LLC and includes important information such as the LLC’s name, registered agent, and purpose.
You can file online or mail the completed form with the appropriate fee.
Step 3: Appoint a Registered Agent
Every New Mexico LLC is required to have a registered agent. The registered agent is responsible for receiving legal and official documents on behalf of the LLC.
The agent must have a physical address in New Mexico and be available during business hours.
Step 4: Create an Operating Agreement
Although not required by the state, it is highly recommended to create an operating agreement for your LLC.
This document outlines the ownership and management structure of the company, as well as the rights and responsibilities of the members.
It helps to establish clear guidelines for decision-making and can prevent disputes in the future.
Step 5: Obtain Required Permits and Licenses
Depending on the nature of your business, you may need to obtain permits or licenses from state and local authorities.
Research the specific requirements for your industry and make sure to comply with all necessary regulations.
Step 6: File Annual Reports
Once your LLC is formed, you will need to file annual reports with the New Mexico Secretary of State.
These reports provide updated information about your company, including the names and addresses of the members and managers. Failure to file the reports can result in penalties or the dissolution of your LLC.
Step 7: Obtain an EIN
If your LLC has employees or you choose to be taxed as a corporation, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
The EIN is used for tax purposes and is necessary for hiring employees and opening business bank accounts.
By following these steps, you can successfully form an LLC in New Mexico.
Extended Version and Guide
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.
If you want to use an LLC formation service, visit our list of the best LLC services in New Mexico.
What to do before you set up a New Mexico LLC
Before you move forward with your LLC plans, there are 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.
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 a 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 license.
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 to as a “pass-through” tax structure.
If the LLC meets certain criteria, it can choose to be taxed either as a C-corp or 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 State.
Do New Mexico LLCs file annual reports?
New Mexico, unlike most other states, does not require LLCs to 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.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: email@example.com