Our picks for LLC formation services

ZenBusiness
  • Low cost
  • Quick turnaround
  • Expert service and support
Visit ZenBusiness
nw logo Northwest Registered Agent
  • Same-day filing service
  • Affordable pricing
  • Strict ethical code
Visit Northwest
LegalZoom Logo LegalZoom
  • Simple setup
  • Wide range of services
  • Technical support
Visit LegalZoom
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When starting a new company, choosing a business entity is the most important decision that the founders must make. For most businesses with more than one founding member, forming an LLC is often the best option for a number of reasons.

An LLC is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts. Moreover, LLCs often enjoy a lower tax rate than corporations. Nevertheless, creating an LLC can get complicated depending on where you are based, with the formation process, filing fees, and continuing legal obligations differing from state to state.

Forming an LLC in New Mexico follows a standard process that shouldn’t give entrepreneurs much trouble. What’s more, LLCs in the state are not required to file annual reports or pay the associated fees, which are common requirements in most states.

To avoid a misstep in the filing process, follow these steps to start an LLC in New Mexico, and refer to the checklist at the bottom of the post to familiarize yourself with the legal and financial requirements for LLCs in the state.

Starting an LLC in New Mexico step-by-step

1. Select a name for your New Mexico LLC

Follow naming requirements

There are 2 major guidelines to follow when naming your LLC in the state of New Mexico:

  1. An LLC’s name must be distinguishable from the names of existing businesses on file with the New Mexico Secretary of State.
  2. An LLC’s name must contain one of the following phrases or abbreviations: “Limited Liability Company”, “LLC”, “L.L.C.”, “L.C.”, or “LC.” The abbreviations “Ltd.” and “Co.” may be substituted for the words “Limited” and “Company”, respectively.

Need help coming up with a business name? Check out our free business name generator.

Check LLC name availability

After selecting a name that complies with state naming guidelines, check its availability by performing a search with the New Mexico Secretary of State Business Search.

Reserve your LLC name with the New Mexico Secretary of State

Reserving your LLC name with the Secretary of State is a good idea since it prevents another New Mexico business from using it before you file your Articles of Organization.

File a Reservation of Limited Liability Company Name application by mail to reserve the name for up to 120 days. The filing fee is $20.

Read more: How to perform a New Mexico business name search

2. Designate a registered agent

As in every U.S. state, forming an LLC in New Mexico requires the appointment of a registered agent service to handle state and federal legal documents and service of process on the business’s behalf.

The registered agent must either be a state resident or business entity with a street address in New Mexico OR if the individual or business is based out-of-state, they must have a business office in New Mexico.

Our picks of the best registered agent services

  • ZenBusiness: There’s no need to stress about filing paperwork when you work with ZenBusiness. This company offers a great variety of LLC services, the focus of which is to ensure your business is set up correctly with the proper paperwork filled out and delivered to the right branch of your state government. Of course, ZenBusiness does charge for their services, but customers say they get the most bang for their buck.
  • Northwest Registered Agent: Starting a business requires a lot of state-mandated paperwork, which can be confusing for new business owners. Northwest offers business services that can help entrepreneurs find the right documentation, fill it out, and file it on time with the right government agency. In addition to helping you set up an LLC, Northwest has a host of additional services, like registered agent services, that new owners will find useful too.
  • Bizee: Bizee offers a great library of material to help first-time business owners figure out what kind of business they should set up. From there, Bizee will aid with documentation and filing procedures and demystify terms like registered agent, articles of organization, and EIN. The company has a strong reputation and great reviews online, too.
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Read more: How to Find the Best Registered Agent in New Mexico

3. File Articles of Organization

An LLC is legally formed in New Mexico through the filing of Articles of Organization with the New Mexico Secretary of State.

The Articles of Organization must provide the following details:

  • LLC’s name, address, email address, and phone number (optional)
  • Registered agent name and address
  • Date that the Articles become effective
  • LLC’s duration (if not perpetual)
  • LLC’s purpose of business
  • Whether the LLC is member-managed, manager-managed, or has a single member
  • LLC organizer name and contact information

The filing must be done online (the creation of a user account is required). The filing fee is $50 and can be paid by credit card

Foreign LLC registration

An LLC formed in a state other than New Mexico that intends to do business in the state must register with the New Mexico Secretary of State.

Follow these steps to do business in New Mexico as a foreign LLC:

  1. Comply with New Mexico LLC naming guidelines and confirm that your LLC’s name is available for use in the state using the Secretary of State Business Search.
  2. Appoint a New Mexico registered agent.
  3. File a Foreign Limited Liability Company Application for Registration with the New Mexico Secretary of State. The application must be filed by mail and the filing fee is $100.

4. Draft an operating agreement

Although not a legally mandated step for forming an LLC in New Mexico, drafting a comprehensive LLC operating agreement is strongly recommended for all nascent limited liability companies.

The operating agreement should do the following:

  1. Describe the LLC’s business structure
  2. Establish the individual responsibilities and obligations of LLC members
  3. Detail how the LLC will be run

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

5. Obtain an IRS Employer Identification Number (EIN) 

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of single-member LLCs).

The nine-digit EIN is like a social security number for a business and is necessary to pay income tax, file tax returns, open business bank accounts, and perform many other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your New Mexico LLC’s additional legal obligations

Once an LLC is registered, its members must devote attention to fulfilling legal requirements that apply for the duration of the company’s existence.

Register with the New Mexico Taxation and Revenue Department

All LLCs active in New Mexico must register with the New Mexico Taxation and Revenue Department to acquire a Combined Reporting System identification number. This includes LLCs formed outside of the state that are doing business in New Mexico.

You can register to get a CRS ID number online using New Mexico’s Taxpayer Access Point (TAP) or print a paper copy of Form ACD-31015 and submit it to a local tax office.

File a New Mexico Income and Information Return for Pass-Through Entities form (Multi-member LLCs only)

All New Mexico LLCs with more than one member must file an Income and Information Return for Pass-Through Entities form before the federal tax return due date. The net income of non-New Mexico resident LLC members should be deducted and withheld when filing the form. Single-member LLCs are treated as sole proprietorships for tax purposes and are not required to file the form.

Visit the New Mexico Taxation and Revenue website for instructions on how to file the PTE form.

Obtain business licenses and permits

Some New Mexico LLCs are required to obtain one or more state or local business licenses, permits, or certifications depending on the nature of their business and their location.

Visit the State of New Mexico Business Portal: Obtain Licenses and Permits page for guidance on obtaining necessary state business licenses and permits. The site also has a site dedicated to helping businesses to fulfill local and municipal licensing requirements.

Read more: How to Get a Business License

7. File a BOI Report

Effective January 1, 2024, the Corporate Transparency Act (CTA) mandates that most corporations, LLCs, and similar entities in the U.S. report their beneficial owners’ information to FinCEN. In Kansas, a beneficial owner is identified as someone with significant control or at least 25% ownership of the entity. Required information includes the owner’s name, birth date, address, and ID number from an approved document, along with its image.

Entities established or registered before the 2024 cutoff must file their initial reports by January 1, 2025.

For businesses formed in 2024, there is a 90-day window after confirmation of formation to file, while those established afterward have 30 days from their creation or registration date to comply. Filings are processed electronically via FinCEN’s BOI reporting portal.

Learn more about BOI Reporting.

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New Mexico LLC Checklist

Naming requirements:

A New Mexico LLC’s name must obey the following guidelines:

  1. Must be distinguishable from the names of existing businesses on file with the New Mexico Secretary of State.
  2. Must contain one of the following phrases or abbreviations: “Limited Liability Company”, “LLC”, “L.L.C.”, “L.C.”, or “LC.” The abbreviations “Ltd.” and “Co.” may be substituted for the words “Limited” and “Company”, respectively.

Formational documents and filing fees:

Registration procedure:

  • An LLC is legally formed in New Mexico through the filing of Articles of Organization with the New Mexico Secretary of State.

Additional legal obligations:

  • Register with the New Mexico Taxation and Revenue Department – Required for all LLCs doing business in New Mexico
  • File a New Mexico Income and Information Return for Pass-Through Entities form – Required for multi-member LLCs
  • Obtain state and local business licenses – Required for certain types of LLCs
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