How to Start an LLC in New Mexico: If you’re interested in setting up a New Mexico LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. New Mexico laws make it easy to establish your LLC in New Mexico. On this page, You’ll find all the steps that must be taken to ensure that your New Mexico LLC has been correctly established. We recommend you read the whole article very carefully word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in New Mexico
- After Starting Your New Mexico LLC
- New Mexico Foreign LLC
- New Mexico LLC Formation Review
How to Start an LLC in New Mexico
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC in New Mexico, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $50. There are some more steps to follow to get your LLC established in New Mexico. The following steps explain everything you need to create your LLC in New Mexico in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in New Mexico to set up your LLC.
Step 1: Decide a Name for Your New Mexico LLC
The very first step while forming an LLC in New Mexico is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
New Mexico LLC Naming Guidelines
There are a few specific requirements all the LLCs in New Mexico have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in New Mexico can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by New Mexico State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|New Mexico Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
New Mexico LLC Name Search – Instructions
|325 Don Gaspar,|
Santa FE, New Mexico 87501
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $20 to reserve your name with the New Mexico Secretary of State.
Doing Business As (DBA) or Trade Name
New Mexico does not require any Doing Business As (or DBA) filing. In the state level, there is no requirement or registration process for the fictitious name in New Mexico.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in New Mexico
The second step to forming a New Mexico LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in New Mexico. Hence, hiring a competent New Mexico Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of New Mexico or has a physical street address. Their business address or the principal address should be in New Mexico. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in New Mexico. Some LLC formation services offer standalone New Mexico registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of New Mexico can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of New Mexico and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in New Mexico.
Registered Agent Consent Application
In New Mexico, the registered agent has to sign and submit the Statement of Acceptance of Appointment Form online before starting their service with the LLC. This letter should be submitted every time a registered agent is changed by the LLC. The change of registered agent costs $20. However, it does not cost anything to submit the Acceptance Statement by the Registered Agent.
Step 3: File Articles of Organization in New Mexico
The third and most important step in forming a New Mexico LLC is to file the Certificate of Formation. This New Mexico Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $50 to file your formation certificate in New Mexico. (Read more on LLC cost in New Mexico).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in New Mexico LLC, one should know about the rules and regulations thoroughly. Also if you are expanding your existing business (an LLC) to New Mexico then you need to register as a New Mexico Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. Click on the LLC Formation option to go to the Account page. If you have already subscribed to the portal then you can log in with your credentials. Otherwise, you can create your account to start filing your LLC by clicking on the “Online Filing” button below. Read more about the New Mexico Articles of Organization for online registration.
Processing Time: It takes 2 business days to get a New Mexico LLC if you file it online.. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents in lesser time along with lifetime customer support and 100% accuracy. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your New Mexico LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an New Mexico LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like New Mexico, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve New Mexico LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 5: Filing a New Mexico LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in New Mexico LLC requires following specific rules and regulations. On the other side, EIN for New Mexico foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your New Mexico LLC. If you do it yourself it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands it should take fewer hours and you always have live chat with expert support for any help you need.
After Starting Your New Mexico LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File New Mexico business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File a New Mexico LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Cost of New Mexico LLC
Forming an LLC in New Mexico is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form a New Mexico LLC. LLCs have pass-through taxation. Hence, your New Mexico LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in New Mexico,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$20|
|Certificate of Formation Fee||$50|
|Certificate of Good Standing||$25|
|LLC Annual Fee||Not Required|
In New Mexico, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be renewed by paying $20.
In New Mexico, an Annual Report is not required. However, you can always have an internal annual report for your LLC. Also, the State of New Mexico requires LLCs to pay a Sales Tax of 5.125%. Read our guide on LLC costs in New Mexico for more information.
New Mexico Foreign LLC
If you are interested in forming a Foreign LLC in New Mexico then you need to file the Certificate of Foreign LLC to the New Mexico Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the New Mexico SOS to form your foreign LLC in New Mexico. To know more in detail, check out our guide on New Mexico Foreign LLC.
Reasons to Start an LLC in New Mexico
Those who opt for starting a New Mexico LLC will have massive incentive programs and tax benefits like a reduction in tax liabilities for operating in the state. Read more on New Mexico’s classification of LLC tax. Also, various business funding options for domestic business entities are available. Many industries are benefited from the incentives as they are creating jobs and investing capital in New Mexico. Following are the long-lasting benefits in detail discussed below.
No Franchise Taxation
When a person is thinking of expanding their business, then they get two options. Either they choose to form a new branch or series of LLCs to expand or sell the franchise rights to some other person willing to do the same business as yours. In New Mexico LLC, there is a tremendous benefit of selling franchise rights: no taxes are leveraged over the franchise. One can start the franchise LLC in New Mexico without paying taxes as they need to pay in other states.
Privacy of LLC
So many LLCs are showing interest in the state of New Mexico is the privacy policies of LLC in New Mexico. There are no questions asked regarding who are the members and managers in the LLC when a person takes the first step of starting an LLC. This gives them the flexibility to choose the members and make changes whenever they want to, by the working and contribution of a member to the LLC.
Entrepreneurs prefer this option as they don’t want their names to be in the company’s public records.
The cost to Start an LLC in New Mexico is meager. The price that is required to be paid to the government is only $50. If you are hiring a professional (registered agent) for the work of filing, you will be astonished to know that in the value of below $300, you will be paying fees to the government and the agent also for one year.
Forming an LLC in New Mexico can be a fruitful deal for businesses if we consider from the point of view of incentives offered to the businesses. The incentives are total industry-based, in which the Agro-based industries are at the top. Some benefits that are given to the value-added agricultural sectors are:-
- The tax credit is given to provide jobs in rural areas.
- For manufacturers, a receipt deduction is made based on gross consumables.
- There are preferential taxation rates for beer and wine producers.
- There is a tax exemption for Texas/New Mexico residents and also for LLC startups.
Biggest Industries of New Mexico State
Are you interested in being an entrepreneur and want to start an LLC in New Mexico? If yes, then this can be a life-changing decision for your life but wait a minute. Have you researched the top businesses of New Mexico? If not, you should do it now with the help of the below-mentioned information to help your journey.
Oil and Energy Sector
There is a massive deposit of fuel and natural gas resources in the soil of New Mexico. The Permian Basin and the San Juan Basin in the state are the biggest oil deposit, with the help of which the USA is getting 3% of crude and 10% natural gas. Also, there is sunshine in the state all year round, making it a competitor in the list of solar energy production. The energy sector’s overall contribution to the New Mexico GDP is $17.17 billion, including coal mining.
Defense and Aerospace
The environment of New Mexico State is best for the defense industry, especially aerospace. The land that is present in the state is dry, which helped the state form large-sized testing places restricted for common usage. Also, many military installation bases and research facilities in the state account for generating 1/10th of the state jobs.
Tourism and Entertainment Business
Due to the favorable environment, a vast new Mexico population loves to spend their weekends and holidays in New Mexico. Also, it is cheaper for common people to come to the state and perform various recreational and fun activities offered in the state. The industry’s contribution in previous years was $7 billion of the state’s annual GDP.
Some of the small businesses that are thriving well in the state are:-
- Medical waste disposal
- Tourism package and planners
New Mexico LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in New Mexico. Click on the steps in this list to read the full detail.
- Name your New Mexico LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In New Mexico, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in New Mexico. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in New Mexico but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in New Mexico
The procedure of filing for LLC in New Mexico may take up to 2 business days, based on the number of applications received.
Whether you are looking to start a new business, or you are interested in expanding an existing business, forming an LLC in New Mexico can be a great option. You can form an LLC online, and have the documents processed in less than three days. However, there are a few things you should know before attempting to form a New Mexico LLC.
The first thing you should do is choose a name for your LLC. Your business name needs to be distinct. This will help you avoid confusion and increase revenue. The name you choose should also be easy to remember. A good way to check to see if the name you want is available is through the Secretary of State’s business search portal.
The second step to forming an LLC in New Mexico is to find a registered agent. A registered agent is a person or company that you nominate to receive legal mail on behalf of your business. Your agent must be a corporation authorized to transact business in New Mexico. You can find out more about registered agents on the New Mexico Secretary of State website. You can also find out if you need to register a bank account for your LLC, which is a common requirement. If you do need to register a bank account, you will need to have your LLC’s federal EIN number. This is sometimes called a Federal Employer Identification Number (FEIN).
In addition to registering a registered agent, you may also need to register your LLC to receive a New Mexico business tax ID number. This can be done online, but will take some additional transit time.
When you form an LLC, you will also need to register a primary address for your business. This address will be used for legal purposes, such as receiving service of process. You will also need to register a secondary address for your LLC, which is used for business purposes. You can also register a business bank account, which is a good way to keep your personal finances separate from your business finances.
Finally, you will need to file your articles of organization. These documents will be filed with the New Mexico Secretary of State. The state will then approve your filing and send you back the approved documents electronically. The processing time for your articles of organization is usually 10 to 15 business days.
If you are going to register your LLC in New Mexico, you will need to file a Statement of Acceptance of Appointment by Designated Initial Registered Agent. This form should be filed with the New Mexico Secretary of State, and it must be signed by your registered agent. In addition, your registered agent will need to agree to accept and forward state mail and legal notices.
Once you have completed all of these steps, your LLC is officially formed. You can also check on your business tax obligations and how to pay your taxes with the New Mexico Department of Taxation and Revenue.
If you are a resident of New Mexico, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $50 (domestic LLC) and $100 (foreign LLC), LLC costs in New Mexico include a sales tax of 5.125% every year.
It takes 2 business days to get a New Mexico LLC if you file it online. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands which has impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report to the New Mexico Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the New Mexico Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLCs in New Mexico at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.