How to form an LLC in New Mexico

Who does a New Mexico LLC suit?

New Mexico suits owners who want the lowest possible upkeep and have no ties to another state, including many owners living outside the US. If you live and run your business in another state, you will usually still have to register there, so New Mexico's low costs rarely help you. See which state to form your LLC in.

What do the Articles of Organization ask for?

• The LLC's name, including "Limited Liability Company", "LLC" or another permitted form. Check that it is free on the Secretary of State's business search.
• The registered agent and their New Mexico street address.
• The principal place of business.
• A few structural choices, such as whether the LLC is managed by its members or by managers, and its period of duration, usually perpetual.
• The organizer who files the Articles.

The names of the members are optional on New Mexico's forms, which is one reason owners who value privacy choose the state.

How do you form a New Mexico LLC, step by step?

1. Choose and check the name

   Search the Secretary of State's business records. You can reserve a name for a fee if you are not ready to file.

2. Appoint a registered agent

   An individual living in New Mexico or a company authorized there, with a physical New Mexico address. Owners elsewhere normally use a commercial agent.

3. File the Articles online and pay $50

   The Secretary of State now takes business filings through its online portal. The filing fee is set at $50 by state law, and card payments carry a small processing charge.

4. Finish the set-up

   Write an operating agreement, get the EIN and open a bank account. See how to start an LLC.

Does a New Mexico LLC file an annual report?

No. New Mexico's LLC law does not require LLCs to file annual or biennial reports, and there is no yearly state fee for keeping an LLC in existence. That makes New Mexico one of very few states with no recurring state filing for LLCs. See New Mexico LLC yearly requirements.

What you must keep up:

• A registered agent, every year. If you use a commercial agent, their yearly fee is your main recurring cost.
• Amendments when key details in the Articles change, such as the name or the agent, which carry their own filing fee.
• Your tax filings, federal and, where they apply, New Mexico's.

What does a New Mexico LLC cost?

For a comparison with other states, see how much an LLC costs.

Which New Mexico taxes can apply?

New Mexico does not have a traditional sales tax. It has a gross receipts tax, charged to businesses on their receipts from selling goods and many services in the state, which businesses usually pass on to customers. A business that sells into New Mexico above the state's threshold, or has a presence there, may need to register for it. See economic nexus.

New Mexico also has personal and corporate income taxes on income from New Mexico activity. An LLC formed in New Mexico but operated entirely elsewhere is taxed where it operates. Federally, it is taxed like any other LLC. See how LLCs are taxed.

How does New Mexico compare with Wyoming and Delaware?

New Mexico costs $50 to form and nothing to keep at state level. Wyoming costs $100 to form and at least $60 a year, and has no state income tax. Delaware costs $110 to form and $400 a year under its current form. For owners abroad, the comparison is set out in the best state for a non-resident LLC. See also Wyoming vs New Mexico LLC.

This guide is general information. It is not tax or legal advice for your situation.