Should you form your corporation in New Mexico? We've collected the relevant information that will help you make this decision.
- Tax rate of 4.6-6.2%
- Low cost of living
- Low real estate costs
- High poverty rate
- Among "Worst States for Business" (Forbes 2016)
Cost of doing business
- $100 filing fee / $25 bi-annual statement
- Owner disclosure in original filing
Forming your corporation in New Mexico
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also restrictions on several terms that could be logically construed as being used for amateur athletic associations, insurance agencies, or financial institutions. Do a FREE name search now.
Board of directors requirements
You will need to form an official board of directors when incorporating in New Mexico. Here are the states explicit regulations regarding these directors:
- Required number of directors
New Mexico corporations must have at least one director listed in their incorporation documents.
- Age restrictions
Directors of corporations located in New Mexico can be of any age.
- Residence restrictions
There are no residence restrictions imposed on the directors of C corporations in New Mexico. However, S corporations are only allowed to have directors located in the United States.
- What information needs to be included in the Articles of Incorporation?
New Mexico does require the names or addresses of directors to be disclosed in incorporation documents.
Requirements for the Articles of Incorporation
The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in New Mexico:
New Mexico requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.
The state of New Mexico does not require officer information to be disclosed during the filing process.
Registered agent information
All New Mexico corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
Additional New Mexico filing requirements
Many states have steps in the incorporation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of New Mexico:
Initial report deadlines
All corporations in New Mexico must file an initial report within 30 days of incorporating.
If your business is a professional practice
Professional service corporations are permitted to form under the professional corporation (PC) structure.
Corporate record keeping requirements
Corporations are required to keep formal documentation regarding several of their operations. These are the explicit record keeping formalities required by New Mexico:
- A set of complete and comprehensive financial records
- Records that detail the owners and class of all outstanding stock shares
- Meeting minutes for all shareholder and director meetings.
New Mexico corporate taxation and fee requirements
There are several tax and fee requirements that must be addressed by corporations in New Mexico. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in New Mexico, it is advised that you visit the state’s official business related website.
Annual report requirements
Corporations in New Mexico are required to file a bi-annual report every two years within 3 ½ months after the end of the fiscal year. There is a $25 fee associated with this process. They must also file a franchise tax along with their corporate income tax each year within 3 ½ months after the close of each tax year. There is a $50 fee associated with this process. Learn more about annual reports.
Tax identification numbers
New Mexico requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. New Mexico does require corporations to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in New Mexico vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
S corporation election
New Mexico does not require a state-level S corp election, as they recognize any elections held at the federal level.
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