How to Start an LLC in New Mexico
Here are the 6 steps to starting a limited liability company (LLC) in New Mexico
For more information on how to form an LLC in any state, see the article How to Form an LLC.
Find out how to form a New Mexico LLC for yourself
Learn about New Mexico LLC formation, including information on Registered Agents, naming rules, business licenses, and more.flor
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Creating an LLC in New Mexico
A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.
A Limited Liability Company LLC must be formed in New Mexico by file the Articles of Organization with the New Mexico Secretary of State and paying the $50 filing fee online.
However, you’ll first need to choose a name and registered agent for your New Mexico LLC.
Online filings for New Mexico LLCs take between 1-3 business days.
An LLC can be easily formed in New Mexico. Our step-by-step guide on How to Start an LLC in New Mexico will help you get started today. Find out more about LLCs and their benefits in our What is an LLC guide.
Step 1. Choose a Name for Your LLC New Mexico
Creating an LLC in New Mexico requires you to choose a business name before you can file a Articles of Organization. Be sure that your business name complies with the New Mexico naming requirements and can be searched by potential customers.
- New Mexico law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
- It is not acceptable for your New Mexico LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
- You should avoid using words or abbreviations that may make your LLC New Mexico appear to be a different type of entity, such as “LP” or “corporation”.
- There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
- Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)
See a complete list of New Mexico’ naming rules here.
Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your New Mexico LLC name.
By filing an application for Reservation of Limited Liability Company Name with the New Mexico Secretary of State, you can reserve a name for 120 days. The application must be sent through the mail. The cost of filing is $20.
All sole proprietorships, general partnerships, corporations, limited liability companies (LLCs), and limited partnerships (LPs) must register with the New Mexico Secretary of State if they engage in business in New Mexico under a name other than their legal one. To learn more about DBAs, read our “What does DBA mean” Guide.
An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see “What is a Limited Liability Company?”.
Step 2: Appoint Your Registered Agent in New Mexico
Your next step in forming an LLC in New Mexico is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.
All New Mexico LLCs must have a registered agent. Please include your registered agent’s name and address on your Articles of Organization .
Registered Agent Requirements in New Mexico
To comply with New Mexico law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in New Mexico. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.
Although you do not have to submit this form to the Secretary of State, your business must record it. Learn more about New Mexico Registered Agents by reading our full guide.
A Registered Agent must be a New Mexico resident or a corporation authorized to conduct business in New Mexico, such as a registered agent service. You have the option of electing someone from your company, including yourself.
In a Certificate of Amendment, you can’t change your New Mexico registered agent. File a Statement of Change of Registered Office or Registered Agent with the New Mexico Secretary of State to change your corporation’s or LLC’s registered agent in New Mexico.
Are You looking for a Registered Agent?
Wise Business Plans offers a free year of registered agent service when forming an LLC in New Mexico.
Step 3.Prepare and File Articles of Organization
To create a New Mexico LLC, you will need to file Articles of Organization with the New Mexico Secretary of State.
The following information is typically required to create a Articles of Organization :
- Your LLC name and principal place of business.
- Name, address, and signature of the LLC’s registered agent
- Decide whether your New Mexico LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
- The reason for forming the LLC in New Mexico.
- Name and address of the LLC’s organizer.
- The effective date of the certificate,
- The person forming the LLC must sign the Certificate.
Foreign LLCs: LLCs that are based in another state but intend to conduct business in New Mexico must complete a form called the Qualification of Foreign LLC.
A filing fee of $50 also applies to this form, and you need to attach your state’s certificate of good standing.
File the Articles of Organization
Online filing through the New Mexico Department of State.
There is a state filing fee of $50 payable to the New Mexico Department of State. (nonrefundable)
Note: Your registered agent must sign a Statement of Acceptance of Appointment, which must be uploaded when filing the documents.
In a member-managed LLC, the members (owners) take on the business’s daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.
When an LLC conducts business in the state where it was formed, it is referred to as a “domestic LLC.” Normally, when we talk about an LLC, we’re talking about a domestic one. When an existing LLC wants to expand its operations to another state, it must form a foreign LLC.
Step 4. Get a Certificate From the State
Upon filing your Articles of Organization , the secretary of state will review it. As soon as the Articles of Organization is approved, the LLC becomes a legal entity.
By obtaining this certificate, LLCs will be able to obtain an Employer Identification Number (EIN),licenses, and business accounts.
Step 5. Write an New Mexico LLC Operating Agreement
An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.
Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.
The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.
An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.
How should an operating agreement be drafted?
The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:
- Who makes decisions for the company, especially those who decide if partners disagree.
- Who is responsible for different aspects of the business as well as for strategic decisions.
- If a partner leaves the company, what will happen to their ownership interests in the corporation.
- The members and their contributions
- How profits and losses will be divided
- Procedures for admitting new members and removing outgoing members
In New Mexico, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Articles of Organization .
A single-member LLC in New Mexico is treated the same as a multi-member LLC for most purposes.
When it comes to filing a tax return, single-member LLCs have more options.
Although an Operating Agreement is not required by law in New Mexico, it is strongly recommended that you create one when filing your Articles of Organization with the Secretary of State because this document does not ask you to list all of the members of your LLC.
Step 6. Get an EIN for Your New Mexico LLC
Basically, an employer identification number (EIN) is a social security number for your LLC in New Mexico.
To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.
An EIN is used for the following purposes:
- Manage state and federal taxes
- Create a business bank account
- Hire employees
Get an EIN Number in New Mexico
Getting an EIN number is easy and free, There are two ways to get an EIN number in New Mexico.
The 1st option is:
Apply online for an EIN from the IRS
The 2nd option is:
Get an EIN by Mail or Fax
Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Yes, An EIN is required for any LLC with employees or more than one member.
When switching a sole proprietorship to an LLC, the IRS demands a new EIN.
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What to do After Forming Your New Mexico LLC
Keep your personal and business assets separate
Your personal assets (such as your home, car, and other valuables) may be at risk when your New Mexico LLC issued if they are mixed with your business accounts.
Here are some steps you can take to protect your LLC in New Mexico:
1. Create a Business Plan:
If you have decided that a New Maxico LLC will be a good choice for your business in New Maxico, your next step is to create a business plan (although it is not required), so that you have a roadmap for what you will do and how you will accomplish it.
Free: Business Plans Examples
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
2. Open a Bank Account
As soon as your LLC is officially formed, you should open a business bank account. Why? Keeping separate bank accounts will help you maintain the legal distinction between the LLC and you (the owner).
Because LLCs are limited liability companies, creditors and litigants can’t take your assets.
It is essential for small business owners to partner with the right bank.
Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.
3. Obtaining a business credit card:
- Allows you to separate personal and business expenses.
- Develops your company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
4. Hiring a business accountant:
- It prevents your business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
- Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
- Manage your business’s funding more effectively. Find out where extra profit or loss can be made
Getting Business Insurance for Your LLC
You can manage risks and grow your LLC with business insurance. Here are the most common types:
- General liability insurance protects your business from lawsuits. Most small businesses purchase general liability coverage.
- Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
- Workers’ compensation insurance: Covers illnesses, injuries, and deaths resulting from a worker’s work.
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- General business liability insurance
- Medical insurance
- Term life insurance
- Workers’ Comp
- Surety bonds
- Commercial auto
New Mexico LLC FAQs
The Secretary of State in New Mexico charges $50 to file the Articles of Organization. For $20, you can reserve the name of your LLC with the New Mexico SOS.
A New Mexico LLC is a great option for those starting a business who have only considered a partnership or S Corporation as a business structure up until now because of the state’s strong asset protection laws.
2 business days.
Simply follow these three steps to dissolve an LLC in New Mexico:
Step 1: Make sure you’re following the terms of your New Mexico LLC operating agreement. The steps for dissolving most LLCs will be outlined in the operating agreement.
Step 2: Make sure your business’s tax accounts are closed.
Step 3: File the Dissolution Articles.
In New Mexico, you must submit the form “Articles of Amendment to the Articles of Organization” (Form DLLC-AM) to the New Mexico Public Regulation Commission to alter your Articles of Organization. This form is available on the internet. Include a duplicate copy with your submission.
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