Are you considering incorporating your business in New Mexico? Find out more about the forms you need, how to file the paperwork, fees and other costs, and steps to guide you through the process.
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by Jane Haskins, Esq.
Jane has written hundreds of articles aimed at educating the public about the legal system, especially the legal aspe...
Updated on: November 28, 2023 · 5 min read
A corporation’s shareholders have limited liability for the corporation’s financial obligations because the corporation is a legal entity separate from its owners. This means that when shareholders invest in a corporation, they are only risking the amount of their investment. They are not responsible for the full amount of any court judgment or debt owed by the corporation. There may also be other advantages, such as tax savings and investor appeal, to incorporating your business.
To form a corporation in New Mexico, you must file articles of incorporation and a signed registered agent form with the Secretary of State and pay a filing fee. The corporate existence begins when you file the articles, unless the articles specify a later date. The articles of incorporation must contain the following information:
A corporation can offer different types of stock, called classes or series. These classes can offer different rights to their shareholders, for example, some classes of stock may offer voting rights while others do not. Regarding stock structure, the following applies: Regarding stock structure, the articles of incorporation must also state the following:
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Before filing articles of incorporation, you should check the availability of your preferred corporation name, which can be done by searching the Secretary of State’s records online or through an online entity name check service.
A corporate name can be reserved for 120 days by filing an application with the Secretary of State’s office or through an online entity name reservation service.
Your corporation’s name must meet the following requirements:
An incorporator is responsible for signing the articles of incorporation and filing them with the Secretary of State. The incorporators’ responsibilities end when the articles of incorporation are filed.
The following requirements apply when specifying incorporators in your articles:
The board of directors determines a corporation’s overall strategy, policies, and business goals. Directors must be diligent and prudent in managing the corporation’s affairs, and their actions must be in the best interests of the corporation.
The following requirements apply when specifying directors for your corporation:
Every corporation must have a registered office and a registered agent at that office who is responsible for receiving lawsuits, notices, and demands that are addressed to the corporation. When specifying your registered agent in the articles of incorporation, you must adhere to the following requirements:
You can state your corporation’s purpose in general terms to allow flexibility in case your business changes in the future. For example, New Mexico allows you to state that your corporation’s purpose is “the transaction of any lawful business for which corporations may be incorporated under the Business Corporation Act.”
Corporate bylaws describe the rules and procedures that will govern the corporation. They are not filed with the Secretary of State. The following requirements pertain to bylaws for New Mexico corporations:
The New Mexico Secretary of State requires a fee when filing articles of incorporation or reserving a corporation name. Corporations are also required to pay state and federal income taxes.
Ready to start a corporation in New Mexico? LegalZoom provides New Mexico corporate formation and filing services, including providing a registered agent in New Mexico.
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