Follow our step-by-step How to Start an LLC in New Mexico guide to get started today.
- 1. Name Your New Mexico LLC
- 2. Choose a Registered Agent
- 3. File the Articles of Organization
- 4. Create an Operating Agreement
- 5. Get an EIN
- 6. Keep Your Company Compliant
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Step 1: Name Your New Mexico LLC
Choosing a company name is the first and most important step of forming a New Mexico LLC. Be sure to choose a business name that complies with New Mexico naming laws and requirements and is easily searchable by potential business clients.
1. Follow the naming guidelines for your New Mexico LLC:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional legal paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
2. Is the name available in New Mexico? Make sure the business name you want isn't already taken by doing a name search on the State of New Mexico's website.
To learn more about searching for a New Mexico LLC name, read our full guide.
3. Is the URL available? We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.
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.
We reviewed and ranked the best LLC services. Find out which is best for you.
Step 2: Choose a New Mexico LLC Registered Agent
You are required to nominate a New Mexico registered agent for your New Mexico LLC.
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. Think of your registered agent as your business's point of contact with the state.
Who can be a registered agent? A registered agent must be a resident of New Mexico or a corporation, such as a registered agent service, authorized to transact business in New Mexico. You may elect an individual within the company including yourself.
Recommended: Check out these best registered agent services.
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 apply online. Additionally, you must file a Statement of Acceptance of Appointment by Designated Initial Registered Agent, which your registered agent must sign.
Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.
File the Articles of Organization
File Online With the New Mexico Secretary of State
Note: Your registered agent must sign a Statement of Acceptance of Appointment, which must be uploaded at the time of filing.
For help with completing the form, visit our New Mexico Articles of Organization guide.
If you’re expanding your existing LLC to the state of New Mexico, you will need to form a foreign 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 business owners 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.
Recommended: Download a template or create a free operating agreement using our tool.
Step 5: Get an EIN
You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity 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.
Steps After LLC Formation
Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.
Visit our After Forming an LLC guide to learn more.
Step 6: Keep Your Company Compliant
New Mexico Business Licenses & Permits
To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.
Find out how to get the necessary business licenses and permits for your LLC with our New Mexico Business License guide.
Recommended: Consider having a professional service research your business’s licensing requirements. Read our best business license services review.
New Mexico LLC Tax Filing Requirements
In order to keep your business in good standing, it's important to stay up to date on your New Mexico LLC taxes.
Depending on the nature of your business, you may be required to register for one or more forms of state tax.
Gross Receipts Tax
Most businesses are required to register for New Mexico's Gross Receipts Tax, which is similar to a sales tax, with the New Mexico Office of Taxation & Revenue. The tax rate varies from 5% to 9.3125% based on your county and potentially your municipality.
If you have employees in New Mexico, you will need to register for Unemployment Insurance Tax through the New Mexico Department of Workforce Solutions. You will also need to sign up for Employee Withholding Tax through the New Mexico Department of Taxation and Revenue website.
New Mexico uses a graduated-rate individual income tax table, ranging from 1.7% to 5.9%. Your bracket will depend on your LLC's income.
State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit the New Mexico Office of Taxation & Revenue website.
If you plan to hire employees, stay compliant with the law by following these steps:
- Verify that new employees are able to work in the US
- Report employees as "new hires" to the state
- Provide workers' compensation insurance for employees
- Withhold employee taxes
- Print workplace compliance posters and place them in visible areas of your workspace
Find out more information at the New Mexico New Hires Directory.
Recommended: Check out our Hiring for Your Small Business Guide for resources like sample job descriptions, payroll service reviews, and more.
Common Questions About New Mexico LLCs
What is an LLC?
LLC is short for “limited liability company.” It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. Read our What is a Limited Liability Company guide for more information.
Or, watch our two-minute video: What is an LLC?
How do I name my New Mexico 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.
After you get your business name, get a unique logo using our Free Logo Generator.
Can I be my own registered agent?
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.
Is a registered agent service worth it?
Using a professional registered agent service is an affordable way to manage government filings for your New Mexico 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.
What is the processing time to form my New Mexico LLC?
New Mexico Articles of Organization processing takes about two business days.
What is the difference between a domestic New Mexico LLC and foreign LLC?
An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign LLC 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.
How much does it cost to start a New Mexico LLC?
The cost to start a New Mexico LLC is $50.
To learn more, read our guide on the cost to form a New Mexico LLC.
Do I need to file my operating agreement with the state?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
How do I get an EIN if I don’t have a Social Security number?
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.
What tax structure should I choose for my New Mexico LLC?
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.
Do I need an EIN for my LLC?
All LLCs with employees, or any LLC with more than one member, 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.
What is the minimum wage in New Mexico?
The minimum wage in New Mexico is $12.00 per hour. For employers in Santa Fe, the minimum wage is $12.95 per hour.
How often do I need to pay employees?
New Mexico requires wages to be paid at least twice per month, except for professional, administrative, or executive employees who may be paid once per month.