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Basic
$199
Fees for filing legal documents to register or maintain a business.
02 weeks processing
Agent fee
Registered Address
Document filing with the Secretary of State
Standard
$499
Fees for filing legal documents to register or maintain a business.
05 days processing
Includes everything in basic package
Comprehensive name check
Preparation of Articles of Incorporation
Lifetime customer support (phone & email)
Federal Tax ID (EIN) Obtainment Service
Premium
$599
Fees for filing legal documents to register or maintain a business.
01 day processing
Includes everything in standard package
2 hours of free tax consultation
Key Points of New Mexico LLCs
Strong Liability Protection
New Mexico LLCs provide limited liability, shielding members/managers from personal responsibility for business debts and judgments in most cases.
Low Cost & Minimal Fees
New Mexico does not require annual or biennial reports for LLCs, reducing recurring costs.
Flexibility & Favorable Tax
New Mexico also offers an optional Pass-Through Entity Tax (PTET) election. Gross Receipts Tax/GRT applies when doing business.
Understanding New Mexico LLCs
A New Mexico LLC combines the liability protection of a corporation with the simplicity of a partnership or sole proprietorship, offering legal protection without requiring heavy annual filings or fees.
What is a New Mexico LLC?
A New Mexico LLC is a business entity that limits the personal liability of its members/managers, allows optional governance structures (member-managed or manager-managed), and must appoint a registered agent in the state.
A New Mexico LLC offers several benefits, including:
Relatively low one-time formation cost. No mandatory annual or biennial report filings for LLCs, reducing recurring legal/regulatory burdens. Flexibility in management and internal governance via Operating Agreement. Optional tax election for qualifying entities.
Why choose an LLC in New Mexico?
Choosing an LLC in New Mexico gives you strong protections of personal assets, a simple and affordable setup, fewer recurring state requirements, and favorable tax options. It’s well-suited for small business owners who want structure without heavy overhead.
Key Benefits Include:
Strong Liability Protection
Low Cost
Minimal Recurring State Fees
Favorable Legal Environment
Optional PTET Election
Flexible Management
Pros and Cons of an LLC in New Mexico
Starting a New Mexico LLC: Benefits
A New Mexico LLC shields personal assets, has a low cost to form, offers flexible management structure, and avoids many annual filings common elsewhere.
Taxation of a New Mexico LLC
By default, LLCs are treated as pass-through entities. New Mexico imposes Gross Receipts Tax on many business transactions. There is an optional PTET election for entities wanting entity-level tax treatment.
Starting a New Mexico LLC: Drawbacks
Some business activities are subject to Gross Receipts Tax, which can be complex to calculate. Foreign LLCs must pay a higher fee to register. There is no annual report requirement, but some local licenses/permits may require periodic renewals.
Who Can Form an LLC in New Mexico?
Any individual or business entity (including non-residents and foreign LLCs) may form or register to operate an LLC in New Mexico.
Types of LLCs in New Mexico
Domestic LLC (New Mexico-based LLC)
A domestic LLC is formed under New Mexico law via Articles of Organization; it operates primarily in the state and must maintain required governance structures, a registered agent, and comply with state tax registration.
Foreign LLC (Out-of-state LLC registering in New Mexico)
A foreign LLC is one formed in another state that wants to do business in New Mexico. It must file an Application for Registration with the NM Secretary of State, designate a registered agent in New Mexico, and pay a registration fee.
Restricted LLC
There is no statutory classification in New Mexico called “Restricted LLC”. Any restrictions must be implemented via Operating Agreement, custom internal rules.
Professional LLC (PLLC)
New Mexico statute allows formation of LLCs for a variety of professions, but licensed professions may have additional regulation/licensing required.
How to Start an LLC in New Mexico
Choose a Business Name
Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in New Mexico. Use the Secretary of State’s name search tool to verify availability.
Appoint a Registered Agent
Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in New Mexico.
File the Articles of Organization
Submit Form LLC to the New Mexico Secretary of State, providing LLC name, principal office address, and registered agent details.
Create an Operating Agreement
Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.
New Mexico LLC Requirements
Age and Residency
Number of Members
Management Structure
Registered Agent and Office
Name Compliance
New Mexico LLC Application
To start an LLC in New Mexico, the key step is filing the Articles of Organization (sometimes called Certificate of Formation) with the New Mexico Secretary of State. This establishes the LLC as a legal entity.
Required Information
- LLC name (must include “Limited Liability Company,” “LLC,” or “L.L.C.”) and be distinguishable in New Mexico.
- Registered agent name and physical street address in New Mexico.
- Principal business address (if different).
- Whether LLC is member-managed or manager-managed.
- Term of LLC (often perpetual unless specified otherwise).
Filing Options
- File online via New Mexico Secretary of State’s Business Services Division.
- Pay one-time formation fee of about US$50 for domestic LLC.
Post-Filing Requirements
- Operating Agreement: not mandatory to file but highly recommended to document operating rules.
- Register with New Mexico Taxation & Revenue Department (TRD) for business tax registration and tax ID.
- Maintain registered agent and comply with any local licenses or permits.
New Mexico LLC Taxation
Pass-Through Entity Taxation (Default)
By default, LLCs are taxed as pass-through entities: the LLC doesn’t pay state income tax; instead members report their share of profits or losses on their individual tax returns.
Gross Receipts Tax & Other Business Taxes
LLCs engaged in business activities in New Mexico must comply with Gross Receipts Tax (a tax on many sales or services), and possibly local taxes or licensing/industry taxes.
Optional Entity-Level / PTET Election
New Mexico allows pass-through entities to elect a Pass-Through Entity Tax (PTET) at the entity level, which may provide tax advantages, especially for certain owners.
No Annual/Biennial Report Fee or Franchise Tax (for LLC level)
New Mexico does not require LLCs to file annual or biennial reports via the Secretary of State, nor impose a separate franchise tax at the LLC level.
New Mexico LLC Annual Filing (Reports & Information)
What to File
LLCs must keep internal records and file tax returns or reports required by the TRD, including any required information for pass-through entity returns or PTET election.
Filing Deadlines
Tax-related filings are due by the same date as the federal return for the LLC/members. Gross Receipts Tax and business registrations follow state/local schedules.
Penalties & Consequences
Failure to meet tax registration or pay required Gross Receipts Tax, or failure to maintain a registered agent, can result in penalties, loss of good standing, fines, or being unable to enforce contracts/lawsuits.
Expanding Your New Mexico LLC
As your business grows, you may expand your New Mexico LLC into other states. This involves registering as a foreign LLC in each state where you plan to conduct business and ensuring compliance with those states' regulations for taxes, licensing, and reporting.
Registering a Foreign LLC in New Mexico
If your LLC was formed in another state but wishes to do business in New Mexico, you must submit a Foreign LLC Application with the New Mexico Secretary of State, designate a registered agent in New Mexico, and often provide a Certificate of Good Standing from your home state.
Doing Business in Other States
To operate outside New Mexico, you'll need to foreign-qualify in those states, comply with local/business regulations and tax regimes in those states, and maintain good standing both in New Mexico and in each state you operate in.
Find The Right State To
Form An LLC
Every state has different rules, costs, and considerations for LLC formation.
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Doing Business in New Mexico
Frequently Asked Questions
Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.
While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.
An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.