How to Start an LLC in New Mexico: Everything You Need to Know
Starting an LLC in New Mexico involves choosing a name for your LLC and registering it with state authorities. 3 min read
2. Naming Your LLC
3. Registered Agent
4. Articles of Organization
5. Operating Agreement
How to Start an LLC in New Mexico
Starting an LLC in New Mexico involves choosing a name for your LLC and registering it with state authorities. With that, you must meet certain requirements that are specific to New Mexico.
Naming Your LLC
Before choosing your name, keep in mind that your name must include words such as “Limited Liability Company” or “Limited Company.” You can also use abbreviations in the form of “LLC,” or “LC.” The word “limited” can also abbreviated in the form of “Ltd.,” or you can abbreviate “company” into “co.” However, certain words such as “university,” “bank” or “attorney” require extra paperwork and additional licenses in some cases. Further, you may not use the following words when naming your LLC:
- Secret Service
You are barred from using any name that associates your entity with a government agency of any kind.
The name must be different from other names in the state database. You may check names already in use at the secretary of online state database. Once you choose a name, you may reserve it for up to 120 days. You must file a separate reservation application with the Secretary of State Corporation Department. While the reservation is not a requirement, it is a good idea to reserve your name to ensure that no one uses it while your registration is being processed. You must file the application via mail and you must pay a filing fee of $20.
Once you have successfully registered the name, claim the name in domain form as well, even if you do not intend to establish your business online. Reserving your domain name prevents others from using your LLC name online. If you intend to take your business online, create an email address that successfully matches your business name (ex. @yourbuisness.com).
Upon successful name registration, you must choose a registered agent. The registered agent receives any legal paperwork on your LLCs behalf and forwards it to your business. Such documents can include court papers or any official paperwork from New Mexico officials. A registered agent must meet the following conditions:
- Be a New Mexico Resident
- Be Authorized to Conduct Business in New Mexico
The agent can be yourself or anyone within the company.
Articles of Organization
- LLC Registered Agent
- Member-Managed or Manager-Managed
- LLC Dissolution Date (if any)
In addition, your articles document must include what’s called a Statement of Acceptance of Appointment by Designated Registered Agent, which will be signed by the registered agent. You file your articles document via mail, and the fee is $50. Processing times are usually between seven to ten business days, and you can pay $150 if you need same-day filing. You may also pay $100 if you want the filing processed within two business days. Fees may vary, so check with the Corporations Bureau for updated fees.
An operating agreement establishes the management structure of your business. A good operating agreement should have the following featured:
- Operating Procedures
- Compensation System
- Roles, Rights, and Duties of Each Member
An operating agreement is not mandatory in New Mexico, but you should draft one, especially if you have more than one member. Even though New Mexico does not require operating agreements to be registered, the state recognizes them as governing documents.
An employer identification number (EIN) is used by the IRS to identify and tax your business entity. Essentially, it is the social security number of your business and it used to file federal and state taxes. Further, banks usually require an EIN to open a business bank account.
You would need to create an EIN for the following reasons:
- If your LLC has more than one member
- If you intend to hire employees
- If you want your LLC taxed as a corporation as opposed to a sole proprietorship
With that, you can obtain an EIN number free of charge via the IRS website. You may also complete the EIN form and mail it in.
Need to learn how to start an LLC in New Mexico? If you need more information, submit your legal inquiry to the UpCounsel marketplace. UpCounsel has some of the top lawyers around the nation that will help you create an LLC in New Mexico and guide you through setting up the best management structure that will satisfy all members. Further, we will help you find the best tax structure for your LLC that will save you money.