As a business owner, you probably already heard of New Mexico’s impressive economic environment and tax structures. But, while it is enticing to know these leverages, have you ever wondered how much it will cost to register an entity in this state? In this post, our trade experts will talk about all New Mexico LLC fees to determine if this location suits your budget. 

Formation Costs for a New Mexico LLC

Business Name Reservation

Reserving your chosen LLC name is not a mandatory procedure even in the state of New Mexico. In fact, you can directly claim rights with the desired trade label through filing your articles of organization as long as it’s not similar to any existing LLCs within the state. 

However, if you’re not yet keen on facing the legwork, you can secure the said name by paying a $20 reservation fee to have its ownership within 120 days.

Articles of Organization

If you decide to forego the name reservation, one of the initial New Mexico LLC fees you must pay is the submission of your articles of organization. This filing allows the government to record your company’s information and comes with a processing fee of $50. 

lady reading documents outside

You may file it online via the website of the New Mexico Secretary of State [1], where the E-File Domestic (NM) Limited Liability Company Formation could be easily found. 

Operating Agreement

If you’re forming an LLC with two or more members, our business specialists highly recommend crafting an operating agreement. Although it’s not a mandatory procedure, this internal document outlines management provisions and ownership rights helpful when faced with crucial decisions and internal conflicts. 

Creating an operating agreement won’t come with any costs when you craft it yourself. However, considering its legal implication to the business, seeking professional assistance services is an ideal solution. 

EIN Registration

Your business is not legally identified until you have your Employer Identification Number (EIN). This nine-digit requirement is often asked when filing tax documents or opening company bank accounts. You can request an EIN without any charges from the IRS. 

Registered Agent

In New Mexico, your registered agent acts as the receiver of all time-sensitive legal and tax documents from the state, so you can only imagine the significance of its obligations. While you have the option to elect yourself in this function, you can also hire professional registered agent services to lessen the chances of non-compliance. 

women in suit smiling

The service fees for these types of providers depend on the features you decide you sign up for and range from $0 to $300.

(If you are looking for service online, you can check our list of top-performing online incorporation service providers here)

Business License/s

After submitting your formation documents, the next step you should do is check whether your business needs specific licenses and permits to operate legally. While not all LLCs are obliged to submit this requirement, it all depends on the nature of your business and standards set by the state, local, and federal government. 

Other Taxes

On the bright side, New Mexico considered LLCs as pass-through entities. So although you will still be taxed for business-related transactions like hiring employees, you won’t be imposed with franchise tax on your corporate returns. Instead, all profits and losses will be reported on individual tax returns of your LLC members. 

Foreign LLC Registration

Are you expanding your business entity in New Mexico? If that is the case, you have to submit an Application for Registration and settle a one-time filing fee amounting to $100 payable to the Secretary of State. 

hands writing on a notebook

LLC Formation Services (Optional)

Not everyone has the guts and time to handle their formation filings single-handedly. That’s why some of them hire excellent LLC formation companies. With extensive industry experience, these professional companies will accurately manage all the legwork on your behalf with an annual or monthly charge of $0 to $300. 

New Mexico Annual LLC State Fees

Unlike most states, New Mexico does not oblige the LLCs operating under its jurisdiction to submit annual reports with recurring fees. However, we still advise you to update your business records whenever you change necessary state requirements like registered agent address to avoid non-compliance risks.

Overall Costs

Putting into account the mandatory formation filing fees, the overall estimated expenses when forming a New Mexico LLC is around $50. This estimation excludes possible taxes and license acquisition for business-specific transactions and other additional services. 

FAQ

How much does it cost to form an LLC in New Mexico?

The cost to form an LLC in New Mexico ranges around $50. This calculation only includes the filing fee for the formation documents as the state does not require any annual submissions. Additional costs may incur through acquiring specific licenses and paying taxes, depending on the nature of your business.

Conclusion

As you may already notice, New Mexico LLC fees may appear to be more affordable than other states. Although you don’t need to file any annual reports, our trade specialists still advise you to track and maintain your state requirements so that you can operate smoothly in the long run. 

For other related pages, you can also consider these states: 

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