Santa Fe. Wine country. Chili peppers and the Albuquerque International Balloon Fiesta. New Mexico is known for many things including the famous breakfast burrito!
You’ve made the decision to take the risk, and now you want to know how to create an LLC in New Mexico. What should we do then? And what will the price be? We’ve outlined all the procedures you’ll need to follow, along with the costs and paperwork needed for New Mexico firms below.
LLCs provide small companies liability protection plus tax benefits. Follow these easy steps to get your limited liability company (LLC) operating in the state of New Mexico after you’ve decided that an LLC is the most suitable corporate structure for your requirements.
You have the option to form an LLC by yourself or use a business creation agency.
1. Assigning a Name to your New Mexico LLC
When choosing a name for a limited liability company (LLC) in the state of New Mexico, there are two primary rules that must be followed:
- The name of a limited liability company (LLC) must be able to be differentiated from the names of other firms already registered with the New Mexico Secretary of State.
- One of the following terms or abbreviations must be used in the name of a limited liability company (LLC): “Limited Liability Company”, “LLC”, “L.L.C. “, “L.C.”, or “LC.” It is OK to use the abbreviations “Ltd.” and “Co.” in place of the full terms “Limited” and “Company,” respectively.
Verify your LLC name is available
After deciding on a name that satisfies the requirements of the state’s naming criteria, the next step is to investigate whether or not it is available by using the NM State Secretary Business Search.
Make a name reservation with the NM Secretary of State.
If you want to prevent another company in New Mexico from using the name of your limited liability company before you submit the articles of organization, it is a smart idea to reserve the name with the Secretary of State.
Mail in an application for the reservation of the limited liability company’s name to reserve the name for a maximum of one hundred and twenty days. The filing cost is twenty dollars.
2. Choose a registered agent in New Mexico
A registered agent in New Mexico is required of every limited liability company operating in the state. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
It is possible for the Registered Agent to be either a resident of New Mexico or a corporate body that is permitted to conduct operations in New Mexico. The Registered Agent is required to provide evidence of a New Mexico street address where they may be reached.
What does a NM Registered Agent do?
A Registered Agent receives tax forms, legal paperwork, lawsuit notices, and government communication on your business’s behalf. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who can be a New Mexico Registered Agent?
A Registered Agent must either be an individual who resides in New Mexico on a permanent basis or a company that is permitted to carry on trade inside the state of New Mexico. An example of the latter would be a Registered Agent service. You have the option of selecting anybody who works for the organization, including yourself.
3. Publish your company’s articles of incorporation.
Your limited liability company (LLC) will be formally recognized after you have a document called the Articles of Organization that lays forth fundamental information about your business. Because this form serves as the legal registration for your company with the state, it is essential that all of the details be accurate.
What should be included in a company’s Articles of Organization?
When completing the Articles of Organization for your New Mexico LLC, you are required to give the following information:
- LLC’s name
- LLC’s duration–perpetual or limited
- The LLC’s registered agent’s name and address
- Location where the Secretary of State should send notifications to the limited liability company (LLC) through mail.
- How the Limited Liability Company (LLC) will be run: by its members or by its managers
- Whether or whether the limited liability company would provide professional services
- Address and name of each individual who created the LLC, as well as a member or manager with direct knowledge of the LLC’s actions.
Submission of Your Organization’s Articles of Incorporation
The filing of the Certificate of Formation is the third and most crucial stage in the process of incorporating a limited liability company in the state of New Mexico.
It costs $50 to submit a formation certificate in New Mexico and requires that you have this legal document known as the New Mexico Articles of Organization. This document is required in order to formally register your company with the Secretary of State.
Visit the Online Service for the Secretary of State to submit your paperwork. You will be sent to the page for the online service. To access the Account page, go to the LLC Formation option and click there.
You will be able to use your credentials to log in to the portal if you have previously subscribed to the service. In any case, you may begin the process of forming your LLC by creating an account after clicking on the “Online Filing” button that is located below.
4. Obtain a Cert From the State
After the formation paperwork of the LLC has been submitted and authorized, the state will issue you a certificate that proves the LLC officially exists. If you ask for a copy and pay an appropriate stamp, the state will send you the certificate.
5. Draft an Operating Agreement for Your Company
Even while establishing a detailed LLC operating agreement is not a legally required step for incorporating a limited liability company in the state of New Mexico, it is highly suggested for all new limited liability firms to do so.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific duties and commitments that each member of the limited liability company (LLC) has
- Lay out the operational structure of the LLC.
A limited liability corporation (LLC) may face legal and practical issues without an operating agreement.
6. Obtain a company tax ID
A number of limited liability companies (LLCs) will be required to get a Federal Employer Identification Number (EIN), often known as a tax ID number.
An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay government employer taxes, open a bank account (in most situations), or recruit staff.
On the website of the Internal Revenue Service (IRS), which is accessible without charge, you may check to see whether you require an EIN and submit an application for one online.
The vast majority of companies are required to obtain an EIN, although a significant exception is provided for single-member limited liability companies, which are permitted to use the owner’s Social Security number instead.
Depending on the nature of their operations and where they are located, some limited liability companies (LLCs) that do business in New Mexico may be needed to get one or more business permits from the state or from their respective municipal governments.
Consult the New Mexico Start a Company Guide, which is made available by the Secretary of State, for advice on how to satisfy the prerequisites for obtaining a state license to operate a business. The New Mexico Licensing Directory allows for the search and retrieval of specific license information.
Contact the municipal or county clerk where your LLC is situated for local licensing requirements.
7. Annual Renewals
It is not necessary to submit an Annual Report in New Mexico. On the other hand, you always have the option of compiling an internal yearly account for your LLC. Additionally, limited liability companies (LLCs) in the state of New Mexico are obligated to pay a sales tax of 5.125%.
What are the fees and next steps?
The fees for establishing a limited liability company in New Mexico begin at $20 for the Name Reservation cost, $50 for the Certificate of Formation price, and $25 for the Certificate of Good Standing fee.
Consider the following additional fees that may be incurred by an LLC:
- Reserving a Name for an LLC
- Copy of certified documents
- DBA (Doing Business As) name
- Receiving Your Certificate of Existence
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the state’s website.
The following are additional activities that are possible after your LLC has been officially registered:
- Obtain any relevant permits or licenses, such as those from the health department, zoning department, department of home occupations, department of occupational licensing, etc. Some states require a seller’s license.
- Register your company with the department of revenue in your state.
- Create a bank account for your company.
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
DIY or professional LLC formation?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state and with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to hire a professional LLC provider so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional agency that specializes in company forms. They can take care of the things that you may not have time to think about for a price ranging from $50 to over $500, and some examples of such things are as follows:
- Creating an LLC operating agreement that describes the who, what, when, where, why, and how of your business (required in some states).
- Putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- payment of filing fees and registration with the appropriate parties.
- Registering the name of your company and ensuring that the name you choose for your limited liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
What is the cost of obtaining a business license in the state of New Mexico?
A name reservation charge of $20, a certificate of formation price of $50, and a certificate of good standing fee of $25 are the costs associated with obtaining a business license in the state of New Mexico.
Where in New Mexico can I get a license to do business?
By submitting your Articles of Organization to the NM Secretary of State and paying the required fee of $50, you will be able to get a New Mexico business license.
How long does it take to set up an LLC in New Mexico?
New Mexico LLCs may be created online in 1-3 days or by mail in 4-5 weeks. In both instances, a filing fee of $50 will need to be paid to the state.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.