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Before you start a limited liability company (LLC) in New Mexico, you’ll need to appoint a registered agent. But what is a registered agent? What are they required to do, and who can be one? We’ll answer those questions below.
What is a New Mexico Registered Agent?
A registered agent is an individual or company that is designated by the LLC to receive important legal documents on behalf of the business. This position is necessary because it ensures that the right people within an LLC are notified in the event of time-sensitive events such as service of process for lawsuits, tax notices, and garnishment notices against employees.
Who can be a Registered Agent in New Mexico?
According to New Mexico law (NM Stat § 53-19-5 [2019]), a limited liability company shall maintain in New Mexico:
(1) a registered office that may be the same as the limited liability company’s principal place of business; and
(2) a registered agent for service of process on the limited liability company that is either:
(a) an individual resident of New Mexico;
(b) a domestic corporation, limited liability company, or partnership having a place of business in New Mexico that is the same as the registered office; or
(c) a foreign (out-of-state) corporation, limited liability company, or partnership authorized to transact business in New Mexico having a place of business that is the same as the registered office.
Should you be your own New Mexico Registered Agent?
There are various reasons to consider hiring a service to act as a registered agent, including:
- Availability – A registered agent needs to generally be available at the principal address during normal business hours. This makes it difficult to leave the office to run errands, meet up with potential clients, etc.
- Compliance Reminders – Some registered agent services (like ZenBusiness) provide reminders of upcoming state requirements, such as filing annual report filings. Forgetting compliance obligations can get you in trouble with the state.
- Avoiding Embarrassment – If you serve as your own registered agent and a lawsuit is filed against the business, you could have papers served to you at your office in front of clients. Obviously, that could be bad for business.
How is a Registered Agent Appointed in New Mexico?
You must name your registered agent when you complete the official paperwork with the state to form your LLC, so you need to decide who your registered agent or registered agent service will be before you begin that process. Be sure to inform whomever you’re appointing and get their permission to serve in that role.
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