How To Start a New Mexico LLC

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Last Updated: August 16, 2022

Overview

Welcome to my guide on how to start a New Mexico LLC. We are here because you’re excited about a new business venture in your home state. I always recommend that you go directly to Northwest Registered Agent to help you get this done.

Recommended: Northwest Registered AgentĀ 

Use Northwest Registered Agent and they will also give you the first year of their registered agent service included too. Go check it out and you’ll appreciate that you did.

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They will help you setup your LLC in New Mexico and make sure you’ve setup the right business structure, filed Articles of Organization correctly, use them as a registered agent and you’re ready to go get a business bank account with Lili.co.

Below you’ll find all the amazing steps to get an LLC in New Mexico setup but before getting into that, I also want to make sure we’ve reviewed what New Mexico is known for and the associated business ideas to them.

If I were going to start an LLC in New Mexico today, I would consider the following:

  1. Start a New Mexico Chili Business
  2. Start a Hot Air Balloon Ride Business
  3. Start a Carlsbad Cavern Tour Business
  4. Start a White Sands Tour Business

There are quite a few tour businesses you could start due to the nature of the terrain and what New Mexico is known for. Now – let’s get into why you’re here … setting up an LLC in New Mexico.

Name Your New Mexico LLC

You need to start by getting a business name for your New Mexico LLC and use the New Mexico naming guidelines so you can make sure the New Mexico Secretary of State’s office can recognize your individual or business entity the right way.

New Mexico Secretary of State’s office has a business search portal you can use to check out whether your name is taken here:

https://portal.sos.state.nm.us/BFS/online/corporationbusinesssearch

Once you’ve done this, you’ll need to make sure your business name is available in the digital world too. I recommend you use GoDaddy to search for your domain and get your website setup there. They have a great website builder you can sue to get started – so use it!

You’re also going to want to make sure your business name follows a few of the guidelines that are set – which are:

  • The name has to be distinguishable from any other business name in the state
  • You can use abbreviations like LLC, L.L.C., Ltd., Corp., Incorporated, etc.
  • The name cannot imply that you are organized for a purpose not allowed in your Articles of Organization

Once you’ve check those out we can move on to finding the right registered agent service that you’re going to need for your business.

Choose your registered agent

If you’re looking for a registered agent for your Limited Liability Company, you’re going to need to need to make sure they do the following for you:

  • They can receive service of process (SOP) on your behalf
  • They have a physical address in New Mexico
  • They’re available during normal business hours

I recommend using Northwest Registered Agent for your New Mexico LLC because they will help make sure you stay in good standing with the state, help you keep track of important dates and documents. They will also include the first year of the registered agent service for you.

I highly recommend using a service like this vs. being your own registered agent. There is too much risk involved with being your own registered agent and as a legitimate Limited Liability Company, you’re going to want to make sure your LLC formation is setup the way the New Mexico Secretary of State’s office wants you to.

After you’ve setup the registered agent that you’ll need we can move on to the official articles of organization step you’ll need to follow.

Prepare and File Articles of Organization

The next step you’ll need to follow is to get your Articles of Organization in order and filed with the New Mexico Secretary of State’s office. You can find the forms that you need here:

http://www.sos.state.nm.us/Forms/Bus_Corp/Articles_of_Organization_Domestic_LLC.pdf

You’ll need to make sure you file your Articles of Organization within 90 days of when it’s signed and that you include the following with it:

  • The name and address of your registered agent in New Mexico
  • The names and addresses of each organizer
  • The LLC’s duration (if not perpetual)
  • The LLC’s purpose
  • Whether the LLC will be managed by managers or members
  • The names and addresses of each initial member or manager, if applicable

You’ll also need to pay a $50 filing fee when you submit your Articles of Organization – which can be paid by check, money order or cashier’s check.

Once you’ve filed your Articles of Organization, we can move on to the next step – which is getting your LLC operating agreement in place.

Create an operating agreement

This is one of my favorite steps to the LLC formation process. We need to make sure you’re operating agreement is in place BEFORE you start to conduct business. This is important because it is a legal document that helps protect you from LLC owners and yourself.

You need to make sure (even if you’re a single member LLC) that you’ve put together this document to keep track of a few things:

  1. If you’ve placed personal assets into the business
  2. How you’re going to be taxed
  3. The percentage of ownership each member holds
  4. What happens if a member wants to leave the business
  5. How new members can be brought into the business
  6. Rights and responsibilities of each member

I recommend that a New Mexico LLC operating agreement is one of the first things you focus on when you’re building out your New Mexico LLC documents. It helps you keep yourself accountable which is key to success here. If you’re going to have more than one member you’re really going to need to get this type of document in place.

Get an EIN

After you’ve figured out your operating agreements and what type of New Mexico Registered agent you’re getting, you’re going to need to apply for a Federal Employer Identification Number. This is going to get your Limited Liability Company the right coverage to operate. The Federal Tax Identification Number helps you whether you’re a sole proprietorship, foreign LLC or one of the many single member LLCs that operate in New Mexico.

We’re here to make sure you’ve got yourself covered with the Internal Revenue Service who wants this as a step in the LLC formation service that you go through. Operating agreements are important but as a New Mexico business – you will still need to have this number which is basically your social security number for your business.

You can apply for one on the IRS website here:

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Once you’ve done this you’ll be able to go get a business bank account.

Open A Business Bank Account

Go to Lili.co and setup a business bank account so you can conduct business, collect sales tax, hire employees, setup the right tax structure, track your business finances, business debts and follow the New Mexico law as you should.

A bank account is incredibly powerful and makes you feel like you’re LLC name is official when you get a bank account on that new business credit card as a business owner. It’s no small feat to get this far so be proud of yourself when you apply for a business account for your New Mexico LLC.

Get Small Business Insurance

Your New Mexico LLC is also going to need business insurance and I always recommend going to commercialinsurance.net to help you do it.

The different types of insurance you’ll need to consider are:

  • Professional liability insurance
  • Product liability insurance
  • Business owner’s policy
  • Workers’ compensation insurance
  • Vehicle insurance etc…

Speak with an agent to get a tailored policy for your business. You want to make sure you’re protected from any potential risks as a business owner in New Mexico.

Get a Business License

You might need to get a business license in New Mexico depending on the type of business you have and where it’s located. I always recommend going to your city hall or county clerk’s office to find out what permits or licenses you’ll need. There are a lot of different types of businesses so it’s hard to give a one size fits all answer here.

Here are some businesses that generally need a business license:

  • Restaurants
  • Bars
  • Caterers
  • Construction companies
  • Child care services etc…

If you have any questions, feel free to give your city hall or county clerk’s office a call to get more information on what type of business license you’ll need.

File an Annual Report

Every LLC in New Mexico is required to file an annual report with the New Mexico Secretary of State’s office. The filing fee is $50 and the report is due by June 1st of every year.

You can file online here:

https://www.sos.state.nm.us/business-services/business-filings/annual-report/

You can also file by mail or in person.

Mailing Address:

Office of the Secretary of State

325 Don Gaspar, Suite 300

Santa Fe, New Mexico 87501-2786

Pay Annual Taxes

You’ll need to pay annual taxes to the state of New Mexico as well. The amount you’ll need to pay will depend on your LLC’s net income.

You can find more information here:

https://www.tax.newmexico.gov/Businesses/Business-Tax-Types/Gross-Receipts-Tax.aspx

You can also speak with a tax professional to get more information on how much you’ll need to pay in taxes.

Congratulations! You’ve now officially formed your New Mexico LLC!

FAQs

How much does it cost to form an LLC in New Mexico?

The filing fee for the Articles of Organization is $50.

Do I need a business license to operate an LLC in New Mexico?

Yes, you will need to get a business license from the state of New Mexico. You can apply for a business