Forming an LLC in New Mexico

If you are wondering how to form an LLC in New Mexico, then you should know that this process involves many steps of varying difficulty, from those as simple as choosing a name to those as complex as forming an operating agreement.

That said, an LLC has many desirable features for those just starting out in business, such as limited liability, which protects your personal assets if your business incurs debts or legal trouble. Because of this, forming an LLC may be worth the effort.

To do so, you can follow these steps:

  1. Select a name. Be sure to follow guidelines for names in New Mexico. Any name must contain some variation of “Limited Liability Company.” Also, some words are restricted or forbidden. You can check name availability with New Mexico’s LLC name search. If the one you want is not taken, you can file for it or reserve it for 120 days after paying a $20 fee. You should also reserve an email and web address similar to your name in case you ever want to use them.
  2. Select a registered agent. This is an individual or business entity that receives and sends legal documents on your behalf. Such an agent has to be a New Mexico resident or a business authorized to operate in the state. Either of them must have a New Mexico street address. You or someone else in your company may act as your registered agent.
  3. File articles of organization. These must be filed with the Corporation Bureau in duplicate and must contain such information as the LLC’s, organizer’s, and registered agent’s names and addresses; the effective date if it is not the filing date; the LLC’s management structure; and the LLC’s duration, if it is not meant to be perpetual. The filing fee is $50. New Mexico has no annual business entity fees.
  4. Form an operating agreement. This document sets out the operating and ownership processes of the LLC. New Mexico does not require it, but it is recommended, especially for multi-member LLCs. The operating agreement is identified by the State of New Mexico as a governing document for your LLC, and as such, it should be kept on file with your registered agent.
  5. Get an employer identification number (EIN). This functions to identify your company for tax purposes and is required for filing taxes. Some banks may also require it if you want to open a business checking account. If your LLC is multi-member, has employees, or takes corporation election for tax purposes, it must acquire an EIN. This can be acquired for free from the IRS.
  6. Obtain a state tax ID. All LLCs, domestic to New Mexico or foreign, are required to register with the New Mexico Taxation and Revenue Department and get a Combined Reporting System identification number. To do this, you can either apply at your local tax office or online.
  7. Meet other tax requirements. New Mexico LLCs are subject to various federal and state tax classifications. To the Taxation and Revenue Department, sole proprietorships must submit a New Mexico Personal Income Tax Return (PIT-1), partnerships and pass-through entities must submit an Income and Information Return for Pass-Through Entities (PTE), and C corporations must submit a Corporate Income and Franchise Tax Return (CIT-1). Other tax requirements can be seen here.
  8. Obtain permits or licenses. You may be required by the State of New Mexico to obtain certifications, registrations, or licenses depending on your business’s activities. If your LLC offers professional services, you may be required to obtain permits or licenses from the state’s licensing boards.

You can create an LLC by using the New Mexico Secretary of State's online portal, which can take as little as 15 minutes, including time for conducting an LLC name search, adding an industry code (NAICS), paying the filing fee, and selecting a primary agent. Additionally, this portal prompts you to enter any information required by state statutes, thus reducing potential filing mistakes on your part. Submission review takes three days or less on average, and will often be completed on the same day.

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