New Mexico is a pro-business state with a supportive tax structure and thriving small business community. If you’re ready to become a part of the entrepreneurial ecosystem in New Mexico, you’ve come to the right place. Follow these steps to register an LLC in New Mexico and launch your business today.
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New Mexico LLC Quick Facts
- Forming an LLC helps to provide personal asset protection for business owners.
- To register an LLC in New Mexico, you must file Articles of Organization.
- The filing fee to start an LLC in New Mexico is $50.
- You are required to have a registered agent in New Mexico.
6 Steps to Registering an LLC in New Mexico
Starting an LLC in New Mexico is easy, just follow these six steps to get started.
To register an LLC in New Mexico, follow these six steps:
- Name Your New Mexico LLC
- Appoint a Registered Agent
- Submit Your Articles of Organization
- Create an Operating Agreement
- Obtain an EIN and Handle Taxes
- File a Beneficial Ownership Information Report
Step 1: Name Your New Mexico LLC
To start, you need to decide on a name for your New Mexico LLC.
New Mexico business names must meet the following criteria:
- Include the term “Limited Liability Company” or an abbreviation
- Be unique and distinguishable from any other business entity in the state
- Cannot include terms that imply government affiliation such as “FBI”
For the full list of naming requirements for New Mexico LLCs, read through the state’s statutes.
To ensure your business name is unique, you will need to complete a business name search on the New Mexico Secretary of State website.
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Step 2: Appoint a Registered Agent
You must appoint a registered agent in order to form an LLC in New Mexico. The registered agent is responsible for receiving important documents and information on behalf of the company.
When designating a registered agent in New Mexico, the following requirements must be met:
- The registered agent must have a physical address in New Mexico
- The registered agent must be present at the designated address during business hours
- The registered agent cannot be the LLC itself but can be an LLC owner or employee
Who Is Eligible to Serve as a Registered Agent?
To register an LLC in New Mexico, it is important to understand who is eligible to serve as a registered agent. The registered agent can be the LLC owner, an employee of the company, a friend, a family member, or a hired registered agent service.
Step 3: Submit Your Articles of Organization
Next, you need to submit your Articles of Organization to the New Mexico Secretary of State. This can be done online. You will also need to include a Statement of Acceptance of Appointment for your registered agent along with your formation documents.
The filing fee is $50.
Make sure to have all required information ready, such as:
- Your LLC name and address
- Your registered agent’s name and address
- The purpose for which your LLC is being formed
- Your LLC management structure (manager-managed vs. member-managed)
- Your LLC’s duration
Quick Note: If your LLC was initially formed in another state, you must register it as a foreign LLC in New Mexico. This process can be completed by submitting an Application for Registration along with a $100 filing fee to the Secretary of State.
Step 4: Create an Operating Agreement
Creating an operating agreement is a crucial step in the process of registering an LLC in New Mexico. However, it isn’t required. An operating agreement is a document that lays out the internal procedures and ownership details of the company.
While New Mexico does not legally require LLCs to have an operating agreement, it is highly recommended to create one to avoid any potential conflicts in the future. This document can help ensure that all members of the LLC are on the same page and understand their roles and responsibilities within the company.
Step 5: Obtain an EIN and Handle Taxes
After registering your LLC in New Mexico, it is important to obtain an Employer Identification Number (EIN) from the IRS. This unique number is necessary for tax reporting purposes, hiring employees, and opening a business bank account.
You can easily apply for an EIN for free on the IRS website.
In addition to obtaining an EIN, it is important to manage taxes effectively for your LLC in New Mexico. Identify any additional tax requirements for your business by visiting the New Mexico Taxation and Revenue Department website.
Step 6: File a Beneficial Ownership Information Report
To register an LLC in New Mexico, you must also ensure compliance with the Beneficial Ownership Information (BOI) Report requirement set by the US Financial Crimes Enforcement Network (FinCEN).
New LLCs have 90 days from formation to submit this report, while existing LLCs must file between January 1st, 2024, and January 1st, 2025. Failure to comply will lead to a $500 per day fine.
To file the BOI Report, you can easily do so online for free on the FinCEN website.
Next Steps
- Open a business bank account to separate and protect your personal assets. Consider signing up with Lili for quick access to business banking and more financial tools.
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- Apply for any necessary licenses and permits that may be required federally or by the state of New Mexico. Review state license and permit requirements on the New Mexico Business Portal.
- Obtain appropriate insurance coverage for your LLC, including general liability, workers’ compensation, and personal liability insurance. With Next Insurance, you can obtain fast, affordable coverage.
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Additional Tips for Success
- Build a strong network: Connecting with other entrepreneurs, mentors, and industry leaders can provide valuable support and open doors to new opportunities for your LLC.
- Stay on top of compliance requirements: Be diligent in following New Mexico’s regulations and requirements to ensure that your LLC remains in good standing and compliant with the law.
- Plan for the future: Set clear goals and milestones for your LLC to guide its growth and success in the long term. Keep an eye on market trends and adjust your business strategy accordingly.
Conclusion
After completing the necessary paperwork and filing for your LLC formation in New Mexico, you must also register for an Employer Identification Number (EIN) with the IRS. This unique identifier is essential for tax purposes and hiring employees.
It is important to comply with all state and local regulations to avoid any penalties or legal issues in the future. Make sure to keep all documents related to your LLC formation in a safe and easily accessible place for reference. Lastly, consider consulting with a legal or financial professional to ensure that all steps have been properly followed and that your LLC is set up for success in the state of New Mexico.