How To Start An LLC In New Mexico

If you are a small business owner hoping to set up a small business in New Mexico, creating a limited liability company or LLC is an attractive option. This is because it offers personal protection and tax benefits.

Suppose you’re hoping to create an LLC in New Mexico but don’t know where to start. In that case, we’ll provide you with all the information you need to start an LLC in New Mexico.

StateNew MexicoTexasArizonaColorado
Population2,117,52229,527,9417,276,3165,812,0696,619,825
LLC Filing Fee$50$300$50$50$130.38
LLC Annual/Biennial Fee$0 (no fee and no information report)$0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year)$0 (no fee and no information report)$10 (every year)$89.34 (every year)
Corporate Tax Rate4.8-5.9%0%*4.90%4.55%5.60%
Nominal GDP per capita$51,481$67,235$56,511$72,597$64, 773.08

Before You Set Up An LLC In New Mexico

Setting up a business in New Mexico isn’t a decision to be taken lightly. Before you get started, you might want to do the following:

  • Draw up a business plan describing the business’ goals and strategies
  • Determine who the LLCs members and managers will be
  • Learn more about your target market
  • Spend time with product development and testing
  • Think about how you will market your business
  • Ensure that your company has the funding it needs

What Does It Cost To Start An LLC In New Mexico?

If you’re prepared to start your company, you might wonder, “how much to start an LLC in New Mexico?” We’ll break down these costs in the section below to give you an idea of what you can expect to pay to start your LLC.

The most fundamental step you’ll need to take to make your limited liability company official is filing the Articles of Organization, which costs $50.

Suppose you need to register a foreign LLC in New Mexico. In that case, you must file a Foreign Limited Liability Company Application for Registration with the Secretary of State. This costs $100.

If you need a registered agent, there are a number of service providers that you can use to ensure that your business is compliant. An additional fee will apply if you choose to go this route.

An additional fee of $20 for domestic LLCs and $40 for foreign LLCs will apply if you need to reserve a business name. Certified copies of official documents and a letter of good standing will cost you $25 each.

Therefore, setting up your LLC in New Mexico will cost you $50 to $190.

Suppose you’re wondering how to start an LLC in New Mexico for free. In that case, it is essential to keep in mind that the Secretary of State charges a fee for its services.

Steps To Start An LLC In New Mexico

Steps-to-start-an-LLC

When you’re ready to make your LLC official, follow the steps below. You can find a list of forms and resources that you may need at the end of this guide.

Pick A Name For Your LLC

The words “limited company” or “limited liability company” or an abbreviation must appear in the business name. You could choose “LC,” “L.C.,” “LLC,” OR “L.L.C.” Moreover, the words “Limited” and “Company” can be shortened as “Ltd.” and “Co.” respectively.

State law also requires LLCs to have names that are different from the names of other registered businesses. The Secretary of State’s company name registry can be used to check whether a name is available.

By completing a petition for the Reservation of a Limited Liability Company Name with New Mexico’s Secretary of State, you can secure a company name for up to four months. This application must be sent through the mail, and the cost of filing is $20.

Moreover, this is also a good time to check whether the domain you wish to use is available for your chosen name. A simple Google search will tell you whether another company has used that domain name or not.

Find A Registered Agent In New Mexico

Once you have decided which name to choose for your limited liability company, you will need to find an agent. According to state law, you must nominate a registered agent when forming an LLC in New Mexico.

An agent is essentially the person or company you have given the legal authority to accept service of process and other legal documentation or notices on the company’s behalf. The agent you choose must fulfill the following requirements:

  • This person or entity must have a New Mexico address
  • During normal office hours, the agent you appoint must be on-site and prepared to receive documentation

Your registered agent will have to sign a Statement of Acceptance of Appointment.

ZenBusiness – $49 + state fees to register your LLC (read review)
Incfile – $0 + $50 state fees to register your LLC (read review)

Articles Of Organization

The Articles of Organization is a legal document that provides the state with information about your LLC.

Once you have filed the Articles of Organization with the Secretary of State, your LLC will be official. Although this may appear a monumental undertaking, it simply entails completing and submitting an online form via the New Mexico Secretary of State’s website or mail, and the cost of this filing is $50.

The state will send you an email after the LLC has been registered successfully. 

After the LLC’s registration paperwork is filed and authorized, you should receive an acceptance letter, certified Articles of Organization, and a certificate of establishment that proves the LLC legally exists. You can use the certificate to set up a bank account for the business and obtain an EIN.

Obtain A Business License Or Permit

Your company may require state, federal, and regional licenses or permits to do business in New Mexico. This applies whether you form a limited liability company or any other type of business entity.

By submitting an application to the appropriate licensing or regulating agency for your company, you can obtain a business license by email, mail, or online. Contact the appropriate license or regulatory agency for more information about business licenses.

Operating Agreement

Drawing up an operating agreement isn’t mandatory for LLCs in New Mexico. Still, implementing one is a good idea since it helps maintain limited liability status by demonstrating to the state that your business is a separate entity.

This agreement outlines the responsibility, rights, and obligations of the managers and members of the company. When no operating agreement is in place, the company is governed by state laws.

Get An EIN

An Employer Identification Number or EIN is needed to identify the LLC for taxation purposes. Suppose the company has more than one member. In that case, you’ll need to have an EIN. If you employ workers, you’ll also have to obtain this tax number.

It can be useful in a variety of situations. If you have one, it will be easier for the limited liability company to create a business bank account and apply for credit. You may need it to apply for a company permit or license.

You can apply for an EIN on the IRS website.

Did You Know?
A cost-effective option to handle official filings for your LLC is to use a registered agent service. The benefits of hiring a professional service provider typically outweigh the yearly expenses for most companies.

The Forms You Need To Register An LLC In New Mexico

Although most of the process can be done online, you may need the following forms when creating an LLC in New Mexico:

LLC Taxes In New Mexico

LLCs in the state are subject to federal and state taxes.

The gross receipts tax applies to companies that sell goods and is similar to a sales tax. If you qualify for this state tax, you must acquire a permit from the New Mexico Taxation and Revenue website.

Additionally, if you employ staff, you will need to pay unemployment insurance tax by registering with the New Mexico Department of Workforce Solutions.

Should you choose to tax your LLC as a pass-through entity, you will have to pay federal income tax, and an additional franchise tax may also apply.

Corporate Taxes in New Mexico

How Long Does It Take To Form An LLC In New Mexico?

If you decide to file the Articles of Organization by mail, you will have to wait four to five weeks for your application to be processed. However, starting an LLC in New Mexico will take just one to three business days if you choose to use the online portal.

What Does It Cost to run an LLC In New Mexico?

Because New Mexico doesn’t require businesses to submit an annual report, there are no state-mandated costs associated with running a limited liability company in the state.

Other costs depend on the nature of your business. 

What To Do After Formation?

Now that you know how to start an LLC in New Mexico, it’s time to discuss what you should do after successfully registering your company with the Secretary of State. Here are some of the steps you should follow:

  • Design an eye-catching logo. Developing your brand and establishing it as a business consumers can trust is paramount to your business’ success. One of the first steps towards that goal is to have a well-designed logo.
  • Set up a website or online store. Create a strong online presence and ensure customers can find you by building a website or eCommerce store.
  • Bank account. You can use your certificate from the Secretary of State to set up a business bank account.
  • Business insurance. By applying for insurance, you can ensure that the company is protected.

You must take the necessary steps to establish and grow your New Mexico LLC.

Resources To Start A Successful LLC In New Mexico

To help you find what you need quickly and easily, we’ve drawn up a list of the resources you’ll need to create your New Mexico LLC.

Start Marketing Your LLC In New Mexico

Once you have completed the first steps toward establishing a successful business, you need to concentrate on generating leads and improving your sales with a robust marketing strategy.

Ideally, this strategy should consist of traditional marketing techniques (flyers, billboards, press releases, etc.) and digital approaches (search engine optimization, content marketing, etc.).

If your company does not have a marketing team, you might want to consider hiring a professional marketer to help you achieve your goals. 

How To Dissolve An LLC In New Mexico

It’s essential to formally dissolve your limited liability company if you decide you no longer want to do business with it. Tax expenses, penalties, and even legal matters may arise from failing to do so in a timely manner.

To do this, you must close the company’s tax accounts and file the Articles of Dissolution with the Secretary of State.

Conclusion

Creating an LLC in New Mexico is easier than you might think. You can use the online platforms to submit your Articles of Organization quickly and easily and have your limited liability company up and running in just three days!

Frequently Asked Questions (FAQ)

Unlike other states that require businesses to submit an annual or biennial report, New Mexico does not have this requirement. This means there is no annual fee for running an LLC in the state.

Yes, New Mexico is a great place to start an LLC because it is more affordable to start and run the business here than in most other states.

Filing by mail – four to five weeks Online application – one to three business days

Yes. Depending on the nature of your LLC’s business, you may be subject to one or more forms of tax. This includes federal and state taxes.

You can keep your identity confidential while operating a business by forming an anonymous LLC. To do this, you will need to use a third party as your registered agent to avoid the typical difficulties of opening a company bank account.

Yes, New Mexico does have a franchise tax, and if you choose to tax your company as a corporation, you will have to pay this tax.

According to state law, New Mexico income tax returns must be filed by S-corporations, LLCs, and other pass-through organizations conducting business in the state.

No, the state does not have a composite tax return.

Matija Kolaric

Amazing content is the core of what we do. With more than 5 years of experience in branding, name development, and business, Matija helps create and manage content production.

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