It’s easy to form an LLC in New Mexico online yourself. Just follow these steps:
- Name Your LLC
- Choose a Registered Agent
- File the NM Articles of Organization
- Create an LLC Operating Agreement
- Get an EIN
- File a BOI Report
Or, use a professional service:
Tailor Brands ($0 + State Fees)
Starting an LLC in New Mexico is Easy
You can start a New Mexico LLC online by registering the Articles of Organization with the Secretary of State. The cost of New Mexico LLC formation is $50.
Follow our How to Start an LLC in New Mexico guide below to get started.
For more information on how to form an LLC in any state, visit our How to Start an LLC guide.
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Get StartedStep 1: Create A Name For Your New Mexico LLC
Before you register your New Mexico LLC, you’ll need to come up with a name. Your business name needs to be catchy for branding purposes and legitimate for legal purposes.
Naming Your LLC
First, brainstorm some possibilities. Use our LLC name generator to get the ideas flowing.
Next, make sure your name meets New Mexico guidelines:
- it contains the words limited liability company, limited company, LLC, or L.L.C.
- it doesn’t contain restricted words or phrases (these often include words like bank, attorney, and university) without approval
- it’s distinguishable from any other entity registered in New Mexico
- full list of New Mexico naming guidelines
Next, do a New Mexico LLC name search with the Secretary of State to find out if your name is available in New Mexico.
If your business name is available and meets guidelines, you’ll be able to register it when you file your Articles of Organization with the Secretary of State.
Is the URL available? Before you commit 100% to a name, check to see if there’s a good web domain available.
We recommend buying your domain right away because even if launching a business website isn’t on your radar right now, it will be soon.
Step 2: Appoint A New Mexico LLC Registered Agent
When you file your Articles of Organization, you’ll need to list a registered agent. A registered agent’s job is to accept legal documents like service of process and tax notices for your LLC.
Your registered agent can be a person or a registered agent service. You can act as your own registered agent, but many business owners choose to use a registered agent service.
Here are a few things to think about before you decide to act as your own registered agent:
- You’ll need to be available during normal (9 am – 5 pm) business hours at the address you provide
- If you run your business from home, you’ll have to make your personal address public
- You could be served with a lawsuit in front of your family or coworkers
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Northwest offers a free year of registered agent services when you form your New Mexico LLC ($29 plus state fees) with them.
Get StartedStep 3: File the NM LLC Articles of Organization
It’s time to officially form your LLC by filing your Articles of Organization with the New Mexico Secretary of State.
You can file online with the State of New Mexico. You’ll also need to upload the Statement of Acceptance of Appointment by Designated Initial Registered Agent form when applying. The filing fee is $50.
You’ll need to know the following information to complete the form:
- Entity Name and Address
- Effective Date and Duration
- Business Purpose
- Registered Agent Name and Registered Office Address
- Governing Authority Type (LLC Management Structure)
- Organizer Information
For more detailed help with completing the form, visit our New Mexico Articles of Organization guide.
How long does it take to get a New Mexico LLC approved? LLC processing time is 2 business days.
Step 4: Create A New Mexico LLC Operating Agreement
Creating a New Mexico LLC operating agreement is the only way to legally lock down your LLC’s management and ownership structure. Having an operating agreement in place will give you something to return to if a dispute or lawsuit arises.
Even single-member LLCs benefit from having an operating agreement.
Your operating agreement should outline the following:
- Each member’s responsibilities
- How new members will be admitted
- How existing members may transfer or terminate their membership
- How profits and dividends will be distributed
You can add as many provisions as you want, as long as they don’t conflict with New Mexico business law. Take a look at our What is an Operating Agreement guide to learn more.
Download a template or create a custom Free Operating Agreement using our tool.
Step 5: Get an EIN
An Employer Identification Number (EIN) is like a Social Security number (SSN) for your company. The IRS and the state of New Mexico will use this number to track your business activity.
Your EIN will come in handy when it’s time to:
- Open a business bank account
- File Federal and State taxes
- Hire employees
The best way to get an EIN for your LLC in New Mexico is by using the free online application on the IRS website.
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Best LLC ServicesStep 6: File a Beneficial Ownership Information Report
When forming a New Mexico LLC, one of the important steps is to complete the Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).
This report — also known as the FinCEN BOI report — is designed to combat money laundering, terrorist financing, and other illicit activities by requiring LLCs to disclose information about their beneficial owners.
This is free to file through the FinCEN website.
New LLCs must complete this filing within 90 days of formation. Existing LLCs must file before January 1, 2025.
Failure to complete this filing requirement will result in a $500 per day fine.
Steps After Forming an LLC in New Mexico
After forming your New Mexico LLC, it’s important to:
Open A Business Bank Account
A business bank account helps separate personal expenses and company expenses, which is required to maintain your New Mexico LLC’s corporate veil. A corporate veil protects your personal assets from creditors in potential lawsuits against your LLC or Business.
Learn more by reading this guide to Banking for Entrepreneurs. For a multi-member LLC, you’ll also want to set up capital accounts for LLC members. We also recommend checking out our review of the best business bank accounts.
Get A Business Credit Card
A business credit card will help separate personal and business expenses while building your company’s credit history. A strong credit history will be useful for raising capital in the form of venture capital, angel investment, or small business loans.
Set Up Business Accounting
Hiring a business accountant is one of the best ways to ensure you’re taking advantage of LLC tax benefits; possibly saving you and your business thousands of dollars per year.
When forming an LLC in New Mexico, it’s a good idea to start a relationship with a business accountant as soon as you start your business to help set your company up for success.
Get Business Insurance
Business insurance helps manage risk. The most common forms of business insurance are general liability, professional liability, and workers’ compensation.
Find out the real cost of getting insurance for your business. Get a free quote or call 855-965-3168.
Keep Your Company Compliant
Research New Mexico Business Licenses and Permits
To operate an LLC in New Mexico, you will need to comply with federal, state, and local government regulations such as health permits, building permits, and signage permits.
Business licensing and permit requirements vary from state to state. To get started, visit our How to Get a Business License in New Mexico guide. To help facilitate this process, you can also utilize a business license service.
Understand New Mexico State Tax Requirements
While New Mexico technically doesn’t have a sales tax, it does impose a statewide gross receipts tax on businesses that sell property (both tangible and digital) or perform services in the state. The Taxation and Revenue Department provides a list of taxable activities, or you can visit our New Mexico Sales Tax guide to learn more about New Mexico seller’s permits.
Additionally, if you have employees in New Mexico, you will need to sign up for unemployment insurance tax with the New Mexico Department of Workforce Solutions and employee withholding tax with the New Mexico Taxation and Revenue Department.
Understand Your New Mexico LLC’s Federal Tax Requirements
Most New Mexico LLCs will need to report their income to the Internal Revenue Service (IRS) each year using Form 1065: Partnership Return (multi-member LLCs) or Form 1040 – Schedule C (single-member LLCs).
How you pay yourself will affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.
Know Your New Mexico LLC’s Federal Tax Election Options
Pass-through taxation entails a business’s profits passing through to the LLC member’s individual tax returns. Like a sole proprietorship, an LLC is taxed as a pass-through entity, also known as a disregarded entity.
Once this process is completed and after any tax-deductible expenses are taken out, the LLC members pay self-employment taxes and income tax on their portion of the business income.
Alternatively, New Mexico LLCs can choose to elect to be taxed as an S corporation (S corp) or C corporation (C corp). If S corporation tax status is elected, LLC members can be taxed as employees of the business, potentially reducing tax burden.
More LLC Resources
- New Mexico Foreign LLCs: Forming a foreign LLC allows your company to operate as one entity in multiple states. Download the New Mexico foreign LLC form to get started.
- New Mexico Certificate of Good Standing: A certificate of good standing verifies that your LLC was legally formed. To order, follow our New Mexico certificate of good standing guide.
- Dissolving a New Mexico LLC: If you are ready to dissolve your LLC, follow the steps in our New Mexico LLC Dissolution Guide.
- LLC Legal Forms: TRUiC offers a number of free LLC legal forms including operating agreements, LLC resolutions, and hiring documents.
