LLCs in New Mexico are affordable and easy to form. And as with other states, the State of New Mexico has some specific requirements that are unique to the state.
Interested parties must register with the Corporations Bureau at the New Mexico Public Regulation Commission by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.
The specifications required of a New Mexico LLC are:
Registration. Registrants must file Articles of Organization with the Corporations Bureau. The documents must be filed in duplicate and must include pertinent information such as:
- LLC name and registered office address
- Effective date, if other than the filing date
- Duration, if not perpetual
- Organizer’s name, address and dated signature
- Name and address of registered agent
- Completed and signed original Statement of Acceptance of Appointment by Designated Initial Registered Agent form
All documents submitted must be accompanied by the payment for the filing fee.
Forms and fees. LLC registrants are required to file Articles of Organization, accompanied by the necessary filing fee of $50. Expedited processing services are available. For same-day filing, there is a $150 fee. Should you opt for processing within two business days, the fee is $100. Fees can change, please check with the Corporations Bureau for the most recent requirements.
Timeline. The standard processing time for documents with the Corporations Bureau is between seven to 10 business days. For an additional fee, expedited processing services are available that shorten the process to two business days or the same day.
Naming requirements. LLC naming requirements can be confusing. However, the easiest way to ensure that your LLC name will be approved is to make it distinguishable from other LLCs and include specific words required of LLCs. You may opt to have a preferred name checked for availability before filing your LLC formation documents.
Formation requirements. To form an LLC, a registrant must first file Articles of Organization with the Corporations Bureau.
An LLC with more than one member is also strongly advised to have a limited liability operating agreement among its members.
Should your LLC offer professional services, you may have to obtain certain licenses and permits from the state’s professional licensing boards.Ready to start your LLC? START AN LLC ONLINE NOW
Starting an LLC in New Mexico
Before you begin the registration process for an LLC in New Mexico, it’s important to know what an LLC is and whether or not it is a viable business structure for your company, so be certain to read up on the definition and benefits of an LLC.
These steps will guide you through the LLC registration process with the New Mexico Corporations Bureau:
1. Decide on a name for your business. You can choose any name for your LLC as long as it ends with “Limited Liability Company,” “Limited Company” or any variation of its abbreviation—e.g., LLC, L.L.C., LC or L.C.
A name may be reserved for up to 120 days. You must file a name reservation application with the Secretary of State Corporation Department. All requests must be accompanied by the $20 filing fee. Be sure to include the name to be reserved and the applicant’s information and dated signature.
A preferred name may be checked for availability by accessing the Secretary of State’s website.
2. Assign an agent for service of process. Registered agents are individuals or corporations authorized to do business in the state and which have permanent addresses in New Mexico. Registered agents accept legal documents on behalf of the LLC and make sure its members are notified.
3. Get an Employer Identification Number (EIN) from the IRS. If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.
4. Create an operating agreement. Although LLCs in New Mexico are not required to have a limited liability company operating agreement, it is wise to have one in place with other members should your LLC have more than one member. The State of New Mexico recognizes limited liability company operating agreements as governing documents.
5. Familiarize yourself with the LLC’s continuing legal obligations. Continuing legal obligations may vary with each state. These could be, but are not limited to, state taxes, annual or biennial reports and so on.
Make sure that your LLC, should it offer professional services, meets state legal requirements.
Filing an LLC and Fees
Following are the forms and fees that are required when starting an LLC in New Mexico:
1. Forms. Complete and submit Articles of Organization with the Corporations Bureau. All documents submitted must be accompanied by the payment for the necessary filing fee.
2. Fees. The filing fee for Articles of Organization is about $50. Expedited services are available for an additional $100 or $150, depending on how soon you need your documents processed. These fees can change, check with the Corporations Bureau for the most recent fees.
3. Limited liability company operating agreement. Although the LLC operating agreement will not be submitted to the Corporations Bureau, it is a good idea to have one in place for LLCs with more than one member. This document should be kept on file by the registered agent.
4. Taxes. LLCs in New Mexico are treated as corporations, limited liability partnerships or single-member LLCs and are subject to federal income tax classifications. Depending on the type of taxation you opt to have for your LLC, you will have different federal tax responsibilities. New Mexico state tax responsibilities are as follows:
a) An LLC treated as a limited liability partnership. Per New Mexico state law, LLCs treated as partnerships are required to submit a completed Income and Information Return for Pass-Through Entities (PTE) to the Taxation and Revenue Department.
b) An LLC treated as a C corporation for federal tax purposes. Per New Mexico state law, LLCs treated as C corporations are required to submit a Corporate Income and Franchise Tax Return (CIT-1) to the Taxation and Revenue Department.
c) An LLC treated as an S corporation. Per New Mexico state law, LLCs treated as partnerships are required to submit a completed an Income and Information Return for Pass-Through Entities (PTE) to the Taxation and Revenue Department.
d) An LLC treated as a sole proprietorship. Per New Mexico state law, LLCs treated as a sole proprietorship are required to complete and submit a New Mexico Personal Income Tax Return (PIT-1) to the Taxation and Revenue Department.
You should always make sure to acquaint yourself with the state laws regarding taxation. Your LLC may be subject to other taxes depending on the kind of services your LLC may offer.
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