Creating an LLC in New Mexico is a wise business move if you want to safeguard your assets and receive tax advantages for your business.
However, certain expenses are involved, and it's essential to be informed of them before starting the procedure.
To help you budget well, we consulted our team of certified LLC specialists and reviewed the New Mexico Secretary of State's website for the correct legal filing costs.
Here's everything you should anticipate fees-wise when forming an LLC in New Mexico.
Quick Summary
- A New Mexico LLC costs $50 to file the Articles of Organization.
- As an LLC-friendly state, New Mexico does not have an annual report fee.
- New Mexico LLCs are subject to a $35 local business license tax.
How Much Does an LLC Cost in New Mexico?
An LLC in New Mexico costs $50 to file Articles of Organization online via the state's e-File system. However, additional services may cost more, including business licenses, registered agent services, and name reservations.
New Mexico LLC Filing Fee
In New Mexico, the filing fee for an in-state limited liability company is $50 [1]. This amount covers filing your LLC's Articles of Organization on the New Jersey e-File online portal.
Articles of Organization must be submitted online in New Mexico and can be processed by the secretary of state within 1-3 business days after receipt.
New Mexico Registered Agent Service Fee
Each limited liability company in New Mexico must choose a registered agent responsible for collecting legislative letters on the business's behalf.
An LLC’s registered agent must also be prepared to accept service of process and other legal mail during regular business hours.
The details of the registered agent must be included in your Articles of Organization during the registration process.
You are permitted to act as your own registered agent in New Mexico, but you must be present at the same physical location each working day of the year. If this is ineffective, you could choose to hire a registered agent.
The registered agent fee in New Mexico ranges from $35 to $300.
New Mexico Local Business License
Most cities in New Mexico also demand local and municipal business permits.
These local permits typically cost an annual fee of $35. Nevertheless, the cost of fire and safety licenses varies depending on the square footage of a site, ranging from an additional $35 to $400 for the smallest and largest enterprises, respectively.
Some LLC owners could also be required to get specific permits; for example, if your LLC is in the gas sector in Silver City, the municipal county council there charges $25 per year for gas stations.
Also, if you're a home-based business entity in Santa Fe, you'll have to pay an extra $175 permit fee.
It's best to visit your municipal clerk's website or get in touch with the office to find out which licenses your LLC will require.
Other LLC Filing Costs
When forming an LLC in New Mexico, you may incur additional filing costs. These include:
1. New Mexico LLC Name Reservation
If you have an LLC name but aren't prepared to register your firm immediately, you can secure that name and prevent competitors from claiming it.
To reserve a business name in New Mexico, you must file the Application for Reservation of Limited Liability Company Name form.
The New Mexico LLC cost of a name reservation is $30 and lasts for 120 days.
Unfortunately, once the 120-day period ends, you cannot renew a business name reservation in New Mexico.
Hence, it's advisable to register your business within that period.
For more information on how to verify a business name availability, check our article on how to look up a New Mexico LLC.
2. Doing-Business-As Name Registration
A DBA or an assumed name is a different name your New Mexico LLC operates under other than the official name.
In New Mexico, LLC owners are not mandated to register for DBAs, but it's wise if you want to secure a given name and prevent competitors from using it.
If you want to register a DBA name in New Mexico, you must mail your articles of amendments to your Articles of Organization and pay a $50 filing fee.
Before sending any of these documents, ensure that the DBA name you want to register is not taken and follows all the naming regulations using the Business Services site.
3. Annual Report ($0)
One thing that makes New Mexico an excellent state for LLCs is that there's no annual report filing. This means that there are no yearly renewal fees that you should worry about throughout the term of your LLC.
4. New Mexico LLC Federal Taxes
With default tax categorization, LLCs in New Mexico are called "pass-through" businesses, meaning earnings flow through the LLC to the shareholders and members.
The members then list gains as earnings on their personal tax returns and pay the federal self-employment tax rate of 15.3%.
New Mexico LLCs are required to submit the New Mexico Information Return for Pass-Through Entities annually.
5. LLC Certificate of Good Standing
The certificate of good standing is a legal document that shows that your LLC is compliant and up-to-date with tax filings.
This document is needed to register your LLC in another state, source business funds, and take on potential investors.
The New Mexico LLC cost for a Certificate of Good Standing is $25, and LLC owners can order it online on the New Mexico Secretary of State's Business Services page.
6. Certified Document Copies
These are state-sealed duplicates of your original document.
Certified copies of filings are available in New Mexico for $25 (with an additional price of $1 per page, up to a maximum of $10).
You may acquire certified copies of your paperwork by contacting the Corporate Division of the New Mexico Secretary of State.
7. New Mexico LLC Operating Agreements
According to the NM Stat 53-19-2(O) statute, a New Mexico LLC operating agreement is a signed contract governing how a limited liability company and its members operate.
Although no state laws mandate an LLC to establish an operating agreement, it's wise to draft one for yourself for $0 and preserve it.
Without an operating agreement, your LLC is instantly subject to New Mexico's standard LLC legislation and may potentially lose its personal liability protection if involved in litigation.
If you hire a professional attorney to create an operating agreement for your New Mexico LLC, be prepared to shell out a filing fee of $100-$250.
8. Professional Business Licenses
New Mexico organizations that require training or certification to deliver services must have professional business licenses.
A professional business license is necessary for several professions, including engineers, realtors, and pharmacists.Â
You can utilize the comprehensive list of boards and commissions maintained by the Regulation and Licensing Department to locate the organization that oversees any professional licenses your LLC could need.
The costs of these professional licenses vary depending on the sector of your New Mexico LLC and the board governing your profession.
9. Employer Identification Number
An EIN is a unique nine-digit tax ID the IRS assigns to your LLC.
It serves as the social security number for your company and is important for opening a business bank account and applying for loans and insurance.
The IRS will instantly accept your application for an EIN at no cost if you have all the details.
Applying for an EIN online is easy, quick, and takes less than 20 minutes.
However, if you don't know how to navigate the registration process, it's advisable to hire a professional service to help you out.
Outsourcing an EIN application service will cost you between $50-$100.
Related article: How Long Does It Take to Start an LLC in New Mexico
New Mexico Foreign LLC Registration
As per the New Mexico law, you must submit a Foreign Limited Liability Corporation Application for Registration to the Secretary of State and a $100 filing fee to register your foreign LLC in this state [2].
You must submit your New Mexico Articles of Organization or certificate of formation during the registration process, pay the annual license fee, and name a registered agent.
Once approved, your foreign LLC can start transacting.
FAQs
How Much Is The New Mexico Business License?
The New Mexico business license is $35 per year. All municipalities and counties in New Mexico require business entities to have this license to do transactions there legally.
How Much Does It Cost To Register a Foreign LLC in New Mexico?
It costs $100 to register a foreign LLC in New Mexico. Once approved, your LLC will be authorized to expand and trade in New Mexico.
Do You Need Professional Help With Your New Mexico LLC?
Forming a limited liability company in New Mexico is affordable and doesn't require an annual report fee.
However, if you're new to the process, knowing which documents to file and what costs to pay can be confusing. This is why hiring a professional service to help you out is a good idea.
Check out our authentic list of the best LLC services in New Mexico that offer various formation packages that suit practically any budget.
Apart from offering wholesome LLC formation and legal counsel, these services rank top in affordable pricing, exclusive features, and faster delivery time.
References:
- https://www.sos.nm.gov/business-services/start-a-business/domestic-nm-llc/
- https://www.sos.nm.gov/business-services/start-a-business/foreign-limited-liability-company/
