Get the fastest New Mexico LLC formation online with worry-free services and support to start your business
Let's start by checking the availability of your company name in New Mexico.
You aren’t alone if the thought of starting a business in New Mexico sounds intimidating. One-third of Americans have considered starting a small business — without ever realizing their dream. Why not? People are daunted by the steps needed to get started, like creating a New Mexico LLC, figuring out legal registration, tax compliance, and more.
However, starting a limited liability company (LLC) in the Land of Enchantment isn’t overly complicated. With this guide, we give you detailed insights into the process. Once you have an overview of New Mexico’s LLC formation requirements, you’ll have the confidence needed to get started.
Read on for a step-by-step breakdown of what you need to do to establish your New Mexico small business. Discover how our LLC formation service can simplify the startup process even further and what tools we offer to support your company’s success.
Naming your LLC in New Mexico is the first step in the formation process. Your business name is important. It’s how people will recognize and remember you. Don’t get too complicated, but choose a moniker that is memorable. Your LLC’s name should convey the products or services you are providing to avoid confusion.
Additionally, there are some legal guidelines for naming a New Mexico LLC to keep in mind:
When you’re coming up with a business name, it’s wise to consider whether you can secure a matching domain name so that your future website can be easily found online. We have a tool to help you do a preliminary domain name search. Our domain name registration service can help you secure the online name that will best serve your company.
Once you have the perfect name chosen, you will still need to complete a few steps before you can file your Articles of Organization to legally establish your business. Reserving your business name in the meantime ensures that nobody else can take it. You will only be able to do this online, as New Mexico has no option for reserving your name by mail. If you’d rather not deal with this process yourself, we have a business name reservation service that can handle it for you. As part of the service, we also check to see if your desired name is available.
Visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out if your desired business name is already trademarked go to the New Mexico Secretary of State website.
Many states require businesses to register any names they wish to operate under other than the one listed on their formation documents. This is known as a “doing business as” or DBA name, but is also called a fictitious name, trade name, or assumed name. New Mexico does NOT require businesses to do this, along with Kansas. However, if you want to branch out into other states, you may have to register it with that state’s business formation and compliance office.
You’ll need to appoint a registered agent. The state requires every registered business entity, including LLCs, to have a New Mexico registered agent. This individual or business entity is responsible for accepting service of process (legal documents) on the business’s behalf.
A registered agent service like ours provides:
Once you have your LLC name and the registered agent picked out, you can file your New Mexico Articles of Organization. This is the formal paperwork needed to establish your company as a legal entity in the eyes of the state.
Filing official government documents like this can be intimidating and/or complicated for many people, which is why we’re here. With our business formation plans, we handle the filing for you to make sure it’s done correctly the first time. But, although we can handle this for you, we’ll show you how the process works below.
You can’t file by mail. New Mexico only allows you to e-file. To do so, visit the Secretary of State’s Corporations and Business Services webpage. Click “Create User Account” and enter your name and the required contact information.
Once you create your account, you can then file your Articles of Organization. The process is straightforward. You will need the following information:
You must also pay a filing fee when submitting the Articles of Organization.
If you have us handle filing your Articles of Organization, once the state approves your LLC, your paperwork will be available from your ZenBusiness dashboard. Here you can keep it and other important paperwork digitally organized.
Once you get your paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents. These documents may include your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.
By now you’re realizing how often you’ll need to supply an address for your new business. That can be unsettling for some business owners, especially those running their business from home. In instances where there’s not a requirement to give the registered agent address or official principal address for your business, a virtual business address can come in handy.
With our virtual business address service, we supply you with a physical street address where you can have your mail sent without divulging your real address to more people than necessary.
You’ll want to draft an operating agreement that outlines how to structure and manage your LLC. It includes details like who the LLC’s members are, their ownership percentages, how to distribute profits, and how to make management decisions. It should also detail what happens if a member wants to leave or if the LLC sells.
While it’s not legally required to submit an LLC operating agreement with your New Mexico Articles of Organization, it’s smart to draft one at this time. Setting out details on paper will decrease the likelihood of conflict. You can refer back to this document in case disagreements arise between LLC members.
This document also gives you credibility. Say you want to expand your business, either by bringing in a private investor or through a business loan. The odds are that you will be asked to present an operating agreement to show your LLC is run in a serious, reliable manner.
Since an operating agreement deals with sensitive financial and legal details, you want to make sure it’s thorough and clearly worded. Creating an operating agreement for your New Mexico LLC is easy with our customizable operating agreement template.
Identifying your LLC for tax purposes is where an Employer Identification Number (EIN) comes into play. If you have more than one member in your New Mexico LLC, you will need an EIN. You will also need an EIN if you hire employees.
Your EIN (also referred to as a Tax ID Number or Federal Tax Identification Number) can be beneficial in other ways. Having one will make it easier to open a business bank account for your LLC and obtain a business line of credit or a loan. You may also need it to apply for business licenses.
You can get your New Mexico LLC’s EIN through the Internal Revenue Service (IRS) website, by mail, or by fax, but if you’re not fond of dealing with that particular government agency, we can get it for you. Our EIN service is quick and eliminates the hassle.
Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult, but it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities.
We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.
For further help managing your new business’s finances, try the ZenBusiness Money App. It can help you create invoices, receive payments, transfer money, and manage clients all in one place. If you want to save yourself the hassle, a reliable partner like us can handle the process of obtaining an EIN for a small fee.
The state fees for forming a New Mexico LLC range from $50 to $150, depending on factors such as your method of filing, whether you choose to reserve your business name, etc. Note that fees change over time, so you should check the Secretary of State website for the most recent fee schedule.
In general, an LLC offers a streamlined means of establishing a business. It doesn’t require a large capital investment to get off the ground, for example. When you form your LLC in New Mexico, you enjoy additional advantages:
Learn more about the benefits of starting an LLC.
There’s no option to mail your document, so online processing is relatively fast. It typically takes two business days to hear back after you’ve filed your Articles of Organization.
New Mexico has options for expediting your filing for an additional fee. If you’re in a hurry to form your LLC and don’t want to jump through the hoops of the state’s expedited filing processes, we can handle it for you with our faster filing speeds service.
No, this is not required in New Mexico — but it is recommended to create one to help further separate your personal liabilities from your business debts and liabilities in the event of legal issues. Just make sure to keep it with your other business paperwork to refer to it easily.
You can opt to have your New Mexico LLC treated as a sole proprietorship (referred to as a “disregarded entity” by the IRS), a partnership, or a corporation for federal tax purposes. Most LLC owners decide to have their business taxed the default way, which is as a sole proprietorship (for single-member LLCs) or a partnership (for multi-member LLCs). This method only requires your LLC members to pay taxes on their percentage of the profits on their personal tax returns. The LLC itself is not taxed.
You must also register your business with the New Mexico Taxation and Revenue Department, where you’ll get a Combined Reporting System (CRS) identification number through the New Mexico’s Taxpayer Access Point (TAP).
If you have your LLC taxed as a C corporation or S corporation, you have to pay the state a corporate franchise tax — there is a minimum fee that would need to be paid. If you choose to have your LLC treated as a sole proprietorship or partnership, you will pay state income taxes on whatever profits you take out of the company.
If you want to determine your bookkeeping, accounting, and tax needs, check out our Free Accounting Assessment.
This depends on many factors, like how many members your LLC has and how much it’s worth. A tax professional can advise you on what structure best suits your needs.
A Series LLC, which refers to one or more LLCs under the umbrella of a parent LLC, is a concept that appeals to many business entrepreneurs. However, Series LLCs are not legal in all states. New Mexico does not permit Series LLCs as of June 2020.
You’ll need to make sure your LLC has all the licenses and permits it’s required to have by law. Unfortunately, because licensing varies by industry and location and can occur on the federal, state, and local levels, there’s no central place to check to see if you have all the licenses and permits you need. You’ll have to do some research.
If you don’t have the time or inclination to do all this research, or if you just want the peace of mind to know that your business has all the licenses and permits it’s legally required to have, our business license report service can do the work for you.
New Mexico has different annual reporting requirements (and form names) for different business types. For-profit corporations file a biennial report (every two years), and nonprofits file their report annually. LLCs may be required to file Form PTE, New Mexico Information Return for Pass-Through Entities; Form S-Corp, New Mexico Sub-Chapter S Corporate Income and Franchise Tax Return; or Form FID-1, New Mexico Fiduciary Income Tax Return. The due date for this filing is on or before the due date of your federal return for the tax year.
A New Mexico LLC can be dissolved by filing the Articles of Dissolution with the Secretary of State. The business must be in good standing upon dissolution — for example, all of your taxes must be paid. You will have to pay a filing fee as well.
For more information, visit our New Mexico business dissolution guide.