New Mexico LLC Costs
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The limited liability company, or LLC, business structure provides business owners benefits, including liability protection, special tax breaks, and a flexible management structure. A common misconception, especially among small business owners, is that forming an LLC is expensive and complicated in New Mexico. In reality, it is both straightforward and affordable.
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Costs to start an LLC in New Mexico
1
LLC Articles of Organization ($50)
- You must file your Articles of Organization with the New Mexico Secretary of State.
- The LLC costs to file your New Mexico Articles of Organization is $50.
- New Mexico does not offer expedited services.
2
New Mexico registered agent fee (varies between $50 to $300)
- You are required to appoint a registered agent when forming an LLC in New Mexico.
- When you obtain a registered agent, you are letting the New Mexico Secretary of State know someone is available to receive government correspondence, tax notices, and subpoenas during regular business hours.
- The cost for a registered agent varies because it depends on the service you choose, the business needs of your LLC, and New Mexico state fees.
- In New Mexico, you are allowed to appoint yourself as your registered agent. You should select a professional to avoid missing deadlines, penalties, and additional fees.
3
Fees to form a foreign LLC in New Mexico ($100)
- You must register a New Mexico LLC as foreign if you have an existing one in a different state and wish to expand.
- The cost to register a foreign LLC in New Mexico is $100.
- You will complete the Foreign Limited Liability Company Application for Registration form and submit it to the New Mexico Secretary of State.
4
LLC name reservation fee ($20)
- New Mexico does not mandate that you reserve an LLC name.
- When you reserve an LLC name in New Mexico, you ensure that no one else can obtain the same company name.
- You can reserve a New Mexico LLC name for up to 120 days before formation.
- Once an LLC name reservation has expired, you cannot renew it.
- You can reserve your LLC name online using the New Mexico Secretary of State Corporations and Business Services portal.
- Or, you can complete the Application for Reservation of a Domestic Limited Liability Company Name and submit it to the New Mexico Secretary of State.
- The cost to reserve a New Mexico LLC name for up to 120 days is $20.
5
Foreign LLC name reservation fee ($40)
- In New Mexico, a foreign LLC can reserve a company name for up to 12 months before LLC formation.
- You cannot renew your foreign LLC name once it has expired.
- You must complete the Application for Reservation of a Foreign Limited Liability Company Name and submit it to the New Mexico Secretary of State.
- The cost to reserve a foreign New Mexico LLC name for 12 months is $40.
6
Cost of certified document copies ($25+)
- You will order your certified LLC documents through the New Mexico Corporations and Business services website.
- The cost for certified documents in New Mexico is $25 plus additional fees per page.
7
Certificate of Good Standing ($25 online)
- In New Mexico, most banks and lenders require a Certificate of Good Standing to open a business bank account.
- You will use the New Mexico Corporations and Business Services portal to order your Certificate of Good Standing.
- The cost of your New Mexico Certificate of Good Standing is $25.
Steps to start an LLC in New Mexico
1
Choose a business name
You will want to consider a few things before choosing an LLC name in New Mexico.
- The name of your New Mexico LLC must be unique and be available for use.
- Your LLC name must meet all New Mexico name requirements and restrictions.
- You will want to check your LLC name’s web domain availability.
You will use the SOS portal to conduct a name check for the availability of your LLC name.
LLC name reservation fee
You do not have to reserve an LLC name in New Mexico before forming an LLC.
LLC name reservation is good for up to 120 days and cannot be renewed.
You can reserve a company name online or complete the Application for Reservation of a Domestic Limited Liability Company Name and submit it by mail to the Secretary of State.
The cost to reserve an LLC name is $20.
The cost for reserving a New Mexico LLC name is $20, and is good for up to 120 days. You do not have to reserve a company name in New Mexico.
2
Appoint a New Mexico registered agent
In New Mexico, the Secretary of State requires you to appoint a registered agent when you form an LLC in the state.
The price for a New Mexico registered agent or service varies beetween $50 and $100 a year. The cost depends on the state fees and your LLC needs.
A registered agent in New Mexico is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a New Mexico resident or a registered agent service authorized to conduct business in the state.
ZenBusiness
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone registered agent service. The price is $99 per year.
Northwest
- Total Out The Door New Mexico LLC Formation Service Package – $40 a month and includes:
- New Mexico State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
LegalZoom
- Economy – $79 plus $153 New Mexico filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
3
File New Mexico Articles of Organization
You must file your LLC Articles of Organization, or Certificate of Formation, with the New Mexico Secretary of State.
You must submit your Articles of Organization to the New Mexico Secretary of State when you are forming an LLC
The cost for filing your New Mexico Articles of Organization is $50.
Mailing address:
New Mexico Capitol Annex North
325 Don Gaspar
Suite 300
Santa Fe, NM 87501
The Articles of Organization form ask for specific information about your New Mexico.
- LLC name
- The purpose of your LLC formation
- Registered agent information
The fee in New Mexico for filing your LLC Articles of Organization is $50.
4
Get a New Mexico LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
Your EIN is a 9-digit number that the IRS, or internal revenue services, assigns LLCs for free. It acts as a Social Security number for companies for income tax purposes.
Sole proprietorships that convert into LLCs must request an EIN.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a New Mexico LLC
You should always keep your business banking and personal banking accounts separate. It helps to ensure that your private assets and credit scores are protected.
In New Mexico, banks will require a copy of your Articles of Organization, your LLC operating agreement, and the IRS-assigned EIN before allowing you to conduct business banking.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in New Mexico
When forming an LLC in New Mexico, hiring a business attorney gives your a leg up in the formation process. It keeps the process straightforward and helps with any unexpected business-related issues that may arise.
Most business attorneys will offer first-time clients free consultations upon request.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in New Mexico will cost $300 per hour.
LLC taxes in New Mexico
- LLCs in New Mexico are considered pass-through entities. Members will file personal tax returns rather than the LLC’s state tax return.
- New Mexico has a Gross Receipts Tax similar to a sales tax in other states.
- If you sell physical products or services, you must obtain a seller’s permit through the New Mexico Taxation and Revenue Taxation Access Point (TAP).
- The New Mexico state tax rate is 5.125%, and a max local and county rate of 4.313%
- When you hire employees for your LLC in New Mexico, you must register for Unemployment Insurance Tax through the New Mexico Department of Workforce Solutions.
- If you hire employees in New Mexico, you must register for Unemployment Insurance Tax through the New Mexico Department of Labor, Licensing and Regulation.
- You will use the New Mexico Department of Taxation and Revenue website to register for Employer Withholding Tax.
- Federal and state taxes are complicated, so hiring a professional tax expert is worth it for many LLCs in New Mexico.
Business licenses and permits in New Mexico
The type and price of business licenses and permits depending on the location of your New Mexico LLC and the kind of business it is.
You will use the New Mexico Regulation and Licensing Department website to check for specific licenses and permits.
A business license in New Mexico averages $35 per year.
New Mexico counties and local offices have different business licenses and permit requirements. Some are ongoing costs that will require annual renewal.
It is always best to call ahead and ask about the process, price, and business hours.
Notary public
You may find that some LLC formation documents require a notary public in New Mexico.
Most government agencies have a notary in the office if you cannot find one.
A New Mexico notary can charge a max of $5 per person and $5 per acknoweldgement.
Employer obligations in New Mexico
- You have specific employee obligations if you hire employees for your LLC in New Mexico.
- The federal government requires all businesses to verify that their employees are eligible to work in the US. You will file Form I-9 from the USCIS Website.
- You will need to enroll in worker’s compensation insurance.
- You must report all new hires using the New Mexico New Hire Directory.
- You will find a complete list of employer obligations in New Mexico.
Benefits of a New Mexico LLC
- In New Mexico, forming an LLC makes business banking seamless. Banks and lenders require new business owners to open a business banking account that is separate from their personal one. An LLC reduces your personal liability.
- An LLC has different compliance requirements than incorporations. Corporations must answer to shareholders and stock owners when making business decisions and deals.
- LLCs are pass-through entities in New Mexico. Your LLCs earnings are only taxed once through your personal tax return.
- You help to avoid double-taxation as an LLC. Other business structures such as C-corporations are naturally taxed twice while LLCs are not.
- New Mexico does not require LLCs to file an annual report. Some states have annual fees in the hundreds. It makes the lack of annual report fees appealing.
- Many holding companies set up LLCs in New Mexico because of the low LLC filing fees.
FAQs
How long does it take to register an LLC in New Mexico?
LLC registration in New Mexico takes 1 to 3 business days if you file online and 2 to 3 weeks if you file by mail.
New Mexico does not offer any expedited services.
How do I dissolve my New Mexico LLC?
You will file your Articles of Dissolution with the New Mexico Secretary of State.
You will complete the Domestic Limited Liability Company Articles of Dissolution form and submit it by mail. The cost to file your New Mexico LLC cancellation is $25.
Does New Mexico require a DBA for an LLC?
The abbreviation DBA stands for ‘doing business as.’ A DBA, or assumed name, is any registered name a person or LLC uses to do business that is not the legal name.
New Mexico does not require a DBA for LLCs.
Do I need a business operating agreement for my LLC in New Mexico?
In New Mexico, the Secretary of State does not require you to create an LLC operating agreement.
However, LLCs sometimes opt to have one file to avoid future misunderstandings between departments and members. The operating agreement can be written or oral, as long as it is on the company file.
Does New Mexico have an annual franchise tax?
In New Mexico, there is no annual or biennial franchise tax. New Mexico does have a Gross Receipts Tax.
Are there publication requirements for an LLC in New Mexico?
Unlike Arizona, New Mexico has no publication requirements, nor do they have an annual report to file.
However, when you publish a notice of your new LLC, you alert future customers of your arrival. It is a great way to introduce new LLCs, small businesses, and entrepreneurs to the public.
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