Last Updated: June 7, 2024, 2:41 pm by TRUiC Team

How to Start an LLC in New Mexico (2024 Guide)

Wondering how to start an LLC in New Mexico

To get started, you'll need to pick a suitable business name, choose a registered agent, and file your Articles of Organization with the New Mexico Secretary of State ($50 processing fee). 

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 65% of our readers and hire a specialized New Mexico LLC formation service (recommended).

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Northwest ($29 + State Fees)

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LegalZoom ($249 + State Fees)

Start an LLC in New Mexico

How to Form an LLC in New Mexico in 6 Steps

In order to form your LLC in New Mexico, there are certain steps you’ll need to complete:

  1. Name Your New Mexico LLC
  2. Choose a Registered Agent
  3. File the Articles of Organization
  4. Create an LLC Operating Agreement
  5. Get an EIN
  6. File a Beneficial Ownership Information Report

Step 1: Name Your New Mexico LLC

Before you get started, you will need to pick a suitable name for your New Mexico LLC.

This will need to comply with all applicable naming requirements under New Mexico law and be both succinct and memorable, as this will make it easily searchable by your potential clients.

1. Important Naming Guidelines for New Mexico LLCs:

  • Your name must contain the words “limited liability company” or a suitable abbreviation (e.g., LLC, L.L.C, etc.). 
  • Your name must be sufficiently distinguishable from all other business names that have been registered with the New Mexico Secretary of State. 
  • Your name cannot include words that are reserved for use by state or federal bodies (e.g., county, City, Police, etc.). 
  • Your name cannot be offensive to any person or group (i.e., cannot contain any vulgar, profane, or discriminatory language). 

For more information, have a look at New Mexico’s statutory LLC naming guidelines

2. Is the name available in New Mexico?

To check whether your desired name has already been taken by another business entity in New Mexico, you can perform a name search on the state of New Mexico’s website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days ($20 processing fee). 

For more information, you can have a look at our New Mexico LLC Name Search guide.

3. Is the URL available?

You should check online to see if your business name is available as a web domain. Even if you don't plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it, potentially saving you both time and money in the long term. 

Find a Domain Now

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

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If you need additional information before getting started, you can have a look at our in-depth comparison of the Best LLC Services in 2024 instead.

FAQ: Naming a New Mexico LLC

LLC is short for "limited liability company". It is a simple business structure that offers more flexibility than a traditional corporation while still providing legal protection for your personal assets. Read What is a Limited Liability Company for more information.

Or, watch our two-minute video: What is an LLC?

You must follow the New Mexico LLC naming guidelines when choosing a name for your LLC:

  • Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
  • Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
  • Receive the proper licensing when using the words such as lawyer or doctor.

If you are having trouble coming up with a name for your LLC, use our LLC Name Generator. That will not only find a unique name for your business but an available URL to match.

Yes. You or anyone else in your company can serve as the registered agent for your New Mexico LLC.

Read more about being your own registered agent.

Step 2: Choose a Registered Agent in New Mexico

After you find the right name for your LLC, you will need to nominate a New Mexico registered agent. This is a necessary step in your Articles of Organization (i.e., the LLC paperwork used to file and register your business with the Secretary of State).

What is a registered agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. You can think of your registered agent as your business’s primary point of contact with the state.

Who can be a registered agent? A registered agent must be a resident of New Mexico or a business entity that is authorized to transact business in the state. This can be an LLC member — such as yourself — a registered agent service, or a business attorney. 

Keep in mind that your initial registered agent will need to sign a Statement of Acceptance of Appointment form in order to be accepted by the Secretary of State. This will need to be filed alongside your Articles of Organization. 

Get Free Registered Agent Services

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge.

FAQ: Nominating a Registered Agent


Having said that, this is generally not recommended due to the fact that your registered agent’s information will become publicly available. 

It will also restrict how flexible you can be, as you will need to be available during regular working hours in your registered office address in order to receive service of process in person (if applicable). 

Read more about being your own registered agent.

Using a professional registered agent service is an affordable way to manage government filings for your LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.

For more information, read our article on New Mexico registered agents.

Step 3: File the New Mexico LLC Articles of Organization

To register your New Mexico LLC, you'll need to file the Articles of Organization with the New Mexico Secretary of State. You can do this online. Additionally, you must file a Statement of Acceptance of Appointment by Designated Initial Registered Agent, which your registered agent must sign.

Before filing, make sure you have completed your Articles of Organization correctly. You will the following information:

  • Your LLC’s name and principal office address (cannot be a P.O. box)
  • Your registered agent’s name, street address, and signed consent form
  • Your LLC’s purpose and management structure (i.e., member or manager-managed)
  • Your LLC’s duration period (e.g., perpetual, etc.)

File the Articles of Organization

File Online With the New Mexico Secretary of State

File Online

Fee: $50

Note: Your registered agent’s Statement of Acceptance of Appointment form will need to be uploaded at the time of filing. The website provides a downloadable form during the formation process.

For help with completing the form, visit our New Mexico Articles of Organization guide.

Note: If you're expanding your existing business to the state of New Mexico, you'll need to register as a foreign limited liability company (LLC).

FAQ: Filing New Mexico LLC Documents

The processing time for an LLC’s Articles of Organization in New Mexico is between two and seven business days on average. Keep in mind that the SOS can take significantly longer during periods of high incorporation submissions. 

An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign limited liability company must be formed when an existing LLC wishes to expand its business to another state.

Read our What Is a Foreign LLC article to learn more.

The minimum cost to start a New Mexico LLC is $50, which covers the cost of filing your Articles of Organization with the Secretary of State (if done independently). 

To learn more, read our guide on the cost to form a New Mexico LLC.

Step 4: Create a New Mexico LLC Operating Agreement

In New Mexico, LLCs are not required to have an operating agreement, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all LLC members are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our New Mexico LLC operating agreement guide.

FAQ: Creating a New Mexico LLC Operating Agreement

No. The operating agreement is an internal document that you should keep on file for future reference. However, many other states legally require LLCs to have an operating agreement.

Step 5: Get an EIN for Your New Mexico LLC

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify business entities and keep track of a business's tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN number is required for the following:

  • To open a business bank account for the company
  • For federal and state tax purposes
  • To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

- OR -

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

An SSN is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application. Learn more about applying as an international applicant.

All LLCs with employees, or any LLC that is not a single-member LLC, must have an EIN. This is required by the IRS.

Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.

When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.

However, some LLCs can reduce their federal tax obligation by choosing the S corporation (S corp) status. To learn more, read our LLC vs. S Corp guide.

Step 6: File a Beneficial Ownership Information Report

Beginning January 2024, LLC owners must file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN). Existing LLCs can file their report any time between January 1, 2024, and January 1, 2025, while new LLCs must file their report within 90 days of formation

This contains similar information to that of your Articles of Organization, such as your LLC name and member information, and can be filed online for free. Failure to file an accurate report on time can result in a $500 per day fine.

Note: There are certain filing exemptions, such as for large companies (i.e., more than 20 full-time employees), tax-exempt entities, and publicly traded companies. 

Considering Using an LLC Formation Service?

We reviewed and ranked the top LLC formation services. Find out which is best for you.


Maintain Your New Mexico LLC

After you’ve successfully submitted your New Mexico LLC forms, you will need to stay compliant for tax purposes.

Sort Out Your Taxes

Regardless of where your LLC is registered, you will be required to pay certain federal taxes. This includes corporation and employer taxes (for LLCs filing as a C corporation), and federal income tax and self-employment taxes (for LLCs taxed as pass-through entities).

In addition, there are a number of different taxes you’ll be required to pay at a local and state level, which can vary depending on the nature of your business.

Below are some of the most common New Mexico business taxes:

Income Taxes

There are three main types of state income tax for you to be aware of as the owner of an LLC based in New Mexico:

  • Individual Income Tax: If your LLC has a default tax structure or has elected S corp status, each member will be required to pay individual income tax, which in New Mexico is set at a statewide rate varying between 1.70% to 5.90%. 
  • Corporate Income Tax: New Mexico LLCs taxed as C corps need to pay corporate income tax at a rate of 4.8% on sales of $500,000 and below and 5.9% on any sales above this threshold.
  • Pass-Through Entity (PTE) Tax: Under legislation passed in 2022, LLCs and other pass-through entities are now able to elect to pay income tax at a business level, which is paid at a flat rate of 5.9% on your LLC’s total profits.

While you can submit your income tax return by mail, the New Mexico Department of Taxation and Revenue encourages taxpayers to file electronically using the Taxpayer Access Point (TAP).

Gross Receipts Tax

Instead of sales and use tax, New Mexico imposes a gross receipts tax (GRT) on any entity conducting business in the state. This is set at a statewide rate of 5.125% on the total amount of money or value your LLC receives from most business activities but can vary up to as much as 9.3125% when the additional rates imposed by counties and municipalities are included.

You can elect to pay this tax and submit a return on a monthly, quarterly, and annual basis. For annual filers, the due date is April 20, whereas for monthly and quarterly filers, the deadline is the 20th of the month following the end of the quarter.

Note: To be able to pay gross receipts tax, your LLC will first need to register with the New Mexico Taxation and Revenue Department. This can be done online using the New Mexico TAP or by filling out and submitting Form ACD-31015.

Franchise Tax

All corporations (including LLCs that have elected to be taxed as C corps) are required to pay a franchise tax. This is an annual charge of $50 that must be paid regardless of a business’s activity level or profitability. A few business entities are exempt from this requirement, including:

  • Insurance companies or groups that share insurance coverage and pay a tax to the state for their premiums.
  • Trusts set up in the US for employee benefits like stock bonuses, pensions, or profit-sharing.
  • Nonprofit organizations such as religious, educational, and charity groups (unless they earn money through activities not related to their main purpose.)

Note: If your LLC is liable to pay franchise tax in New Mexico, you’ll file a return for this tax using CIT-1, Corporate Income and Franchise Tax Return by April 15. This can be submitted by paper or online through the New Mexico TAP system.

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Steps After LLC Formation

After forming your LLC, you will need to get a business bank account and website, sort all required business licensing, and get business insurance, among other things. 

Visit our After Forming an LLC guide to learn more.

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