Overview

Getting an LLC in New Mexico involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.

How To Get An LLC In New Mexico: Step-By-Step

1. Choose a Name for Your LLC:
   • Choose a unique and available name for your LLC.
   • Perform a New Mexico LLC name search through the New Mexico Secretary of State website.
   • Reserve your chosen name if needed.
2. Registered Agent:
   • Appoint a registered agent with a physical address in New Mexico.
3. File Articles of Organization:
   • Determine your NAICS Code.
   • Complete the New Mexico LLC Articles of Organization form (e-file).
   • File online through the New Mexico Secretary of State website.
4. Operating Agreement:
   • Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
5. Employer Identification Number (EIN):
   • Obtain an EIN from the IRS for tax purposes.
6. File the Beneficial Ownership Information Report:
   • Beginning in 2024, many New Mexico LLCs must submit a Beneficial Ownership Information (BOI) Report.

1. Choose A Name For Your LLC

Check if the name you desire for your New Mexico LLC is available in the state. This is important because no two businesses in New Mexico can share the same name.

To do this, use the Secretary of State’s Business Entity Search tool to compare your business name with existing ones in New Mexico. 

Make sure your LLC name is unique by following New Mexico’s naming rules to increase the chances of your LLC name being approved.

If you need, you can reserve the name for your LLC for up to 120 days. The cost is $20.

2. Appoint Registered Agent 

In New Mexico, you need to choose a Registered Agent for your LLC. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.

Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.

The registered agent has to meet some requirements:

• If it is a company, it must offer registered agent services.
• The agent must have an address in New Mexico.
• The agent must be there in person and ready to get documents during regular business hours.

3. File New Mexico LLC Articles of Organization

To officially establish your New Mexico LLC, you need to file the New Mexico LLC Articles of Organization. 

This document provides essential details about your LLC and serves as the official registration.

To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, NAICS Code (to specify the type of your LLC business), and provide the effective date if different from the filing date.  

The form is a straightforward online submission through the e-file system.

The New Mexico LLC Articles of Organization filing fee is $50.

What Is An NAICS Code?

An NAICS Code (North American Industry Classification System) is a code used by government agencies to figure out what kind of business your LLC is in and what activities it’s involved in. It’s mostly used for keeping statistics.

Certain states, such as Alaska, Arkansas, Connecticut, Mississippi, Georgia, Louisiana, New Hampshire, and New Mexico, may request your NAICS Code. While it’s optional in some states, others make it a requirement.

Refer to the guide on the NAICS Association website to discover your specific NAICS Code in New Mexico.

Once filed, the New Mexico Secretary of State will review the document, and upon approval, your LLC attains legal business entity status. 

You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.

4. Create An Operating Agreement 

An operating agreement is a document that shows how your LLC will do business. 

While New Mexico doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.

The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the Articles of Organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.

5. Obtain Employer Identification Number (EIN)

The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.

This number helps you:

• File and handle taxes at both the state and federal levels.
• Open a bank account for your business.
• Apply for permits and licenses.
• Hire employees.

Obtaining an EIN is FREE.

6. File The Beneficial Ownership Information Report

Starting in 2024, many New Mexico LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report, to the Financial Crimes Enforcement Network (FinCEN). 

This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Information E-filing System or opt for a professional service to handle it for you.

Read BOI FAQs here.

Review: What Is Needed To Form An LLC In New Mexico?

To form an LLC in New Mexico, you need:

• A unique LLC name.
• Articles of Organization.
• Registered Agent information.
• Operating Agreement.
• Employer Identification Number (EIN).

What Forms Do You Need To Get An LLC In New Mexico?

• Request to Reserve LLC Name
• Articles of Organization (online)
• EIN Application Form
• BOI Form

How Much Does It Cost To Start An LLC In New Mexico?

The cost to start an LLC in New Mexico involves several steps, each with its own associated fees:

• Articles of Organization Filing Fee: $50
• Name Reservation Fee (if needed): $20
• Register with the New Mexico Taxation and Revenue Department: FREE

What Is New Mexico Tax ID Number?

To conduct business in New Mexico, you must register with the Taxation and Revenue Department and receive a Business Tax Identification Number.

This applies to all business activities, regardless of physical presence. The registration process is online and free, providing state tax ID numbers for specific tax programs.

Corporations must obtain a Business Tax ID for reporting taxes, and even those without tax liability may need to file a corporate tax return. Special registrations are required for specific activities, such as sales of cigarettes, tobacco, liquor, and more, with forms available online and at local offices.

Does New Mexico Require Filing LLC Annual Report?

New Mexico LLCs do not need to submit a yearly report known as the Annual Report to the state.

How Long Does It Take For An LLC To Get Approved In New Mexico?

When you file online, your LLC can be approved in 1-3 business days.

What Are The Benefits Of Getting An LLC In New Mexico?

• Limited liability protection for members
• Pass-through taxation
• Flexible management structure
• Credibility for business transactions

Is New Mexico A Good State To Get An LLC?

Whether New Mexico is the right state for your LLC depends on where you live and do business. If you live or operate in New Mexico, it makes sense to start your LLC there. 

Getting An LLC In New Mexico: Next Steps

Once your LLC is registered, you can:

• Get the permits and licenses you need for your business, like health or zoning permits.
• Register your business with the state’s tax agency.
• Open a business bank account.
• Apply for a business credit card.
• Buy insurance for your business.
• Safeguard your name and logo with a trademark.

To maintain your LLC in New Mexico, you must:

• Update any changes to the registered agent or business address promptly.
• Get a New Mexico Tax ID Number.
• Pay Taxes (owners file their individual tax returns)

Conclusion

Forming an LLC in New Mexico involves a few key steps, from name reservation to obtaining an EIN. 

Carefully following the process ensures a smooth establishment of your LLC. 

For more detailed information and to access the necessary forms, visit the New Mexico Secretary of State website.

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