LLC Cost in New Mexico – How Much to Pay for an LLC


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Perhaps you are hoping to form a New Mexico LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in New Mexico.

New Mexico LLC Cost of Filing

Here are the costs involved in forming an LLC in New Mexico.

Cost of Filing Formation Certificates

The New Mexico Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the New Mexico Secretary of State

New Mexico Domestic LLC

  • Online Filing costs $50.
  • Annual Report filing not required
  • Name Reservation fee costs $20

New Mexico Foreign LLC

  • Online Filing costs $100.
  • Annual Report filing not required
  • Name Reservation fee costs $40
  • By Mail: Fill out the application form, and send it to Secretary of State Corporations Bureau Chartered Documents Division 325 Don Gaspar, Suite 300 Santa Fe, New Mexico 87501. Costs $100.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

New Mexico LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in New Mexico, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the New Mexico Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to New Mexico Department of Revenue

This article is your ultimate guide to the several taxes that an LLC has to pay in New Mexico. Read on to know the taxes levied by the state & federal governments in New Mexico.

The state taxes to be paid to the New Mexico Department of Revenue are :

State Income Tax

Every member of the LLC formed in New Mexico is liable for the State Income Tax. This tax is charged on the amount a person earns himself through the LLC. Usually, this tax is calculated while filing personal income tax returns. The standard income tax rate in New Mexico ranges from 1.7% to 4.9%, depending on the amount a person earns.

State Sales & Use Tax 

The current state sales & use tax rate on LLC in New Mexico is 6.625%. However, the tax rate changes as per the region or city in which the LLC is formed. Every LLC that sells tangible items or is a service provider, has to collect this type of tax & then pay it to the New Mexico Department of Revenue.

Federal Self-Employment Tax

Similar to the State tax, every person earning money from the LLC has to pay this type of tax. It is sometimes called Social Security or Medicare tax. The Federal self-employment tax rate in New Mexico is 15.3 percent. 

Federal Income Tax

The Federal Income Tax is levied on the LLC, depending on the earnings of the LLC, the tax bracket applicable to such earnings, & the manner of filing. This Tax is levied on all the profits earned by the company.

Employee & Employer Taxes

An LLC with several employees drawing monthly salaries has to also pay Employee-Employer taxes, in addition to the taxes mentioned above. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.

Cost Comparison Between States

New Mexico is surrounded by many states, namely Colorado, Oklahoma, Texas, Arizona, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
New Mexico$50None6.625%
Colorado$125$852.9%
Oklahoma$104None4.5%
Texas$300None6.25%
Arizona$50None5.6%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in New Mexico.

Other Costs

How Much Does It Cost to Maintain an LLC in New Mexico

To maintain an LLC in New Mexico you do not need to pay an annual fee. However, state income tax at 1.7% to 4.9%, sales & use tax at 6.625% and federal taxes are levied.

If you’re a business owner in New Mexico, you’re probably wondering: How much does it cost to form and maintain an LLC? This is a complicated process, and you may wonder where to find the most affordable legal help. There are several ways to get the legal assistance you need, from hiring a New Mexico PEO to registering for an online legal service. Here are some ways to get started.

Business insurance is an ongoing expense for many LLCs. Depending on the type of coverage you need, it can cost anywhere from a few dollars a year to several hundred dollars a year. In addition to annual service fees, you’ll have to pay annual state fees. Finally, a good business insurance plan is a must-have. The cost depends on your specific needs, but it’s well worth it if you want to avoid any legal hassles.

If you’re starting a business in New Mexico, you may need to obtain some permits and licenses. While a general state business license is not required, certain industries may require specialized licenses. Additionally, your LLC may need to get permits. Some of these will cost money to obtain, and some will cost money to renew. Avoiding these costs may lead to financial difficulties, so make sure you carefully consider your options.

Once you’ve formed an LLC, you should file articles of organization online. If you’re operating out of New Mexico, you’ll need to file an application for registration online. This fee is $100. Luckily, you only need to file this once. However, if you’re going to operate a business in New Mexico, you should consider filing an operating agreement instead. This document sets up your business’ policies and responsibilities. It helps preserve the limited liability status of your business and makes it obvious that it’s separate from the rest of your company.

In addition to the annual fee, LLCs in New Mexico will need to pay taxes on an ongoing basis. For instance, if you sell products, you’ll have to register for sales taxes. If you employ people, you’ll also need to pay unemployment insurance taxes. If you own a business in New Mexico, you’ll also need to register for a trade name and change your business’ address.

When you register your LLC, you’ll have to register your business with the state and hire a registered agent. Once you have your company registered, you’ll have to stay compliant on the state website by filing quarterly tax payments, and filing an annual report. You’ll also need to hire an LLC operating agreement, which outlines the business practices of the LLC. However, you can opt to do it on your own if you want.

An LLC should also have an Operating Agreement, which should be signed by the members. While operating agreements aren’t required in New Mexico, they’re an essential part of the business and help avoid disputes over financial agreements. If a disagreement arises during operation, a written Operating Agreement can help prevent litigation and keep the business running smoothly. If any disputes occur between LLC members, the courts will usually make a decision based on state law and the interests of the members. A nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service (IRS) and used by the LLC to file taxes. You can obtain this number through the IRS by mailing or online.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of New Mexico is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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