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.

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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

The first thing to consider is the fee. There is no annual fee to maintain an LLC in New Mexico. However, there is a $50 fee for changing your LLC’s Articles of Organization, and $25 for reinstatement of an administratively dissolved LLC. You’ll also need to pay $20 to register a trade name and change the address of your business. These fees are generally low, and can easily be avoided if you follow some simple guidelines.

You’ll also need to pay a business license and tax. The fee for this depends on the state you live in and what type of business you’re operating. For most LLCs, the fee is not prohibitive. You can visit the county government office to learn more about these requirements. There are many types of taxes that an LLC owner must pay. It’s a good idea to work with a qualified accountant to find out which ones you’ll need to pay.

An LLC’s license fees vary based on the type of business it is. A doctor’s license will differ from one for a real estate firm. Fortunately, New Mexico does not require state-level business licenses. Instead, businesses must obtain a local business license. You can apply for an LLC license online or through the Secretary of State. The fee is $50. The state does not charge a franchise tax for LLCs. The corporate tax is 5.9% of the profits earned by your business.

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.

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