There are a lot of great places where you can start up and operate an LLC. One of those is New Mexico, and if you’re considering this location but worried about the cost or complexity of LLC creation you’re definitely not alone. All too often, people who want to start businesses hold themselves back because they worry about the initial costs or the work involved. They might also be unclear on where to start or all the steps to take, so they change focus instead of pushing forward.
It’s completely understandable why someone would do that, but you can make a different choice when you want to start up an LLC in New Mexico. There are great options for support, guidance, and information to make your LLC goals a reality. One of the best options is to work with an LLC formation service to reduce the pressure you may be under and ensure that you set up properly.
You also need to consider how much you’ll need to pay for LLC creation, and that varies depending on the state you’re in. Some people will form an LLC in a different state from the one where they live, simply because the formation and operation processes and costs are so much less in a different location. In this post, we’ll examine the LLC formation costs for New Mexico, so you can feel more prepared as you start out on your new business journey.
Before forming your New Mexico LLC you must understand the steps to take and how much they cost. That way you won’t get partway through the creation of your new LLC and realize that finances are going to be a problem. While the overall cost for getting an LLC up and running typically isn’t very high, you may be trying to start your new business on a shoestring budget that doesn’t have a lot of margin for error. Knowing the costs upfront can help with your peace of mind and make creating your business more enjoyable.
When you find a name for your LLC the first thing you’ll need to do is make sure no one else is using it. Performing a name search doesn’t cost anything, which makes it easy to see if you need to change or adjust the name you’ve selected right from the beginning. Once you settle on a name that isn’t being used, though, you’ll have expenses if you want to reserve your business name or work under a different name (DBA). Name reservation costs $20 and is good for 120 days.
A DBA technically doesn’t have a cost because there’s no registration required. However, you can register a name that’s tied to your Articles of Organization by filing an Articles of Amendment with the state. That costs $50 and prohibits someone another entity from using the assumed name you’ve chosen.
To file Articles of Organization you’ll need to go through the online portal for the Secretary of State. The filing costs $50 and should be processed in one to three days. Through that same portal, you can also get important documents such as a Certificate of Existence or Certificate of Status, along with conducting trademark searches and ensuring that a business is in good standing. A Certificate of Good Standing costs $25.
You can appoint a registered agent for free or serve as your own registered agent, especially if you want to keep the costs down. However, a registered agent has some obligations that might not fit your lifestyle, especially if you travel outside the state or don’t have an office location that’s open during normal business hours.
A registered agent service like ours starts at $199 per year and can cost up to approximately $400 yearly, depending on what options you choose for the assistance you need. If you’re not familiar with how to operate an LLC or you don’t have someone else to appoint, this can be the right choice for peace of mind.
New Mexico doesn’t require an Operating Agreement for LLCs, but it’s still a good idea to have one. This helps provide plenty of protection for LLC members and can help keep you feeling secure about the legal and financial obligations required of you and any other LLC members. The cost can be as low as $0 if you create this document yourself. Your other options are to use an operating agreement service like ours, or work with an attorney. Attorney-created agreements will generally have the highest costs, at around $1,000.
The State of New Mexico views most LLCs as pass-through entities, which means that the LLC itself doesn’t pay taxes. Instead, the members pay any tax due for the business on their personal tax returns. However, if you have special circumstances that require your LLC to pay taxes to the federal government then your business must also pay franchise tax in New Mexico. Any franchise tax due is filed alongside state income tax.
New Mexico doesn’t have a state business license, but it does require businesses to register for a Tax Identification Number. Additionally, the majority of cities and counties have specific regulations that need to be followed, and these will come with licenses and permits. Among the more common requirements throughout the state are:
By forming an LLC in New Mexico you’ll have some expenses you can write off on your federal income taxes. That helps you get back a little of what you put in, and keeps your business financially stronger. Many businesses don’t turn a profit right away, so having more money in the bank can reduce your stress levels and make it easier for you to get your business up and running. The main costs you can deduct include:
LLC Filing Fee (Articles of Organization) | $50 |
Certificate of Good Standing | $25 |
Business License or Permit | varies by city/county (generally around $35 – 50 per year) |
Registered Agent (Optional) | $199 – $400 |
Reserving a Business Name (Optional) | $20.00 |
Articles of Amendment/Assumed Name | $50.00 |
Operating Agreement (Optional) | $0 – $1000 |
Franchise Tax | Only if LLC pays federal income tax |
Setting up your LLC in New Mexico doesn’t need to be a stressful or complicated process. However, it’s easier when you have a little bit of help along the way. By using our LLC creation service you remove all the guesswork and worry from setting up your business. That allows you to focus on growing your LLC for the future, instead of being concerned about its setup. New Mexico is business-friendly overall, and there are low fees and barriers to entry when you want to start up and operate an LLC there. It’s a great place to make business goals come true.
One of the best reasons to choose New Mexico for your LLC formation is that there are low costs for businesses there. It’s a good place to operate your LLC without unexpected costs and difficult paperwork issues. Naturally, that’s good news if you’re not familiar with operating an LLC and want somewhere that’s easy and convenient for a home base. Then, you can get started on your business plans and see your LLC dreams come true.
Technically, you aren’t required to live in New Mexico to have an LLC that’s based out of that state. You can live in another state or even another country and still own a New Mexico LLC. However, keep in mind that you’ll still need a legal presence there, and that’s typically done through a registered agent who can accept legal and official correspondence on behalf of your business.
While the State of New Mexico won’t require you to get an EIN (employer identification number) from the IRS for your LLC, it’s still a good idea to do so. If you want to open a business bank account or you’re going to have employees, you’ll need one anyway. It’s free, and it’s easy to get, so you can have the extra security of keeping your business’ finances and personal finances separate.
When you have an LLC you need to have a registered agent. They’ll be required to live in the state and receive correspondence on behalf of the LLC. You, a business partner, an attorney, or anyone else you appoint can serve in this capacity as long as they’re a legal adult with an address in New Mexico. Choosing a registered agent service is a good idea, though, to reduce any chances of complications with important paperwork.
You can create your New Mexico LLC on your own, but working with an LLC formation service has some worthwhile benefits. Peace and mind and convenience are the largest of the two, and it having a service to help you can be very valuable when you have questions about the development and creation of your LLC. It’s vital that you don’t make a mistake that could put you at risk of financial or legal issues.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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