Should you form your LLC in New Mexico? We've collected the relevant information that will help you make this decision.
- Tax rate of 4.9%
- Low cost of living
- Low real estate costs
- High poverty rate
- Among "Worst States for Business" (Forbes 2016)
Cost of doing business
- $50 filing fee / $0 annual statement
- No disclosure of owners
Forming an LLC in New Mexico
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, or “L.L.C.” 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 regarding the use of terms common to amateur athletics, as well as the financial and insurance industries. Do a FREE name search now.
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:
- Required number of members
New Mexico LLCs must have at least one member or manager listed in their incorporation documents.
- Age restrictions
LLC members in New Mexico may be of any age.
- Residence restrictions
There are no residence restrictions imposed on LLC members in New Mexico.
- What information needs to be included in the Articles of Organization?
Outside of the principal member, LLC Members in New Mexico are not required to list their name or addresses in their Articles of Organization.
Requirements for the Articles of Organization
The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in New Mexico:
Registered agent information
All New Mexico LLCs 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 acts as the state’s point of contact with the company. Learn more about registered agents.
If your business is a professional practice
Professional service companies are not permitted to form under the professional limited liability company (PLLC) structure, however, they may form as traditional LLCs.
New Mexico LLC taxation and fee requirements
There are several tax and fee requirements that must be addressed by LLCs 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
LLCs in New Mexico are not required to file an annual report. However, they are required to pay a franchise tax if they paid federal income taxes during the financial year. This tax is due along with the company’s state income taxes. The cost of this tax is currently $50, regardless of the size of your LLC. Learn more about annual reports.
Tax identification numbers
New Mexico requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. New Mexico also requires LLCs 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 LLC 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.
Need a New Mexico corporation instead? Click here.