Every new business needs startup capital.
Before you deep-dive into your operations, you need to figure out how much money to set aside.
In addition to inventory, software, marketing, and employee costs, business owners need to factor in the costs of registering a business with their state.
New Mexico limited liability company (LLC) formation is affordable because of low state fees.
But LLC formation services and other providers tend to magnify those.
How much will it cost to form an LLC in New Mexico?
We break down every business formation expense and ongoing maintenance costs.
New Mexico LLC formation cost: $50
To incorporate a new business, you need to file Articles of Organization with the New Mexico Secretary of State.
Once approved, this document officially establishes your LLC and allows you to legally do business in the state.
LLC formation fees in New Mexico:
- $50 for a new domestic LLC
- $100 for a foreign LLC
New Mexico insists on submitting your registration online for domestic NM LLC formation. They have a dedicated e-filing portal for that.
The average processing time for online LLC filings is several business days. Paper filings processing takes up to a month.
LLC Articles of Organization filing is the first step. For more details, check our step-by-step guide to New Mexico LLC formation.
It walks you through the next steps, such as creating an LLC operating agreement, applying for an employer identification number (EIN), opening a business bank account, and obtaining state tax registrations.
Extra New Mexico LLC costs to account for
The one-time state filing fee for New Mexico Articles of Organization is the first payment you will make. But it’s probably not the last one.
To properly set up business operations in New Mexico, you may also pay for extras.
Registered agent costs: vary
One of the lines you’ll have to fill in on the Articles of Organization is your New Mexico registered agent name and contact details.
New Mexico does not charge a separate fee for initially appointing a registered agent. However, if you wish to change your registered agent after approval, the state will charge you $20 when you file the “Statement of Change of Registered Agent” online via the business portal.
Apart from updating the New Mexico Secretary of State on your new registered agent details, business owners must also update records with:
Since a registered agent acts as your main point of contact with the authorities, their details must always be up-to-date.
One of the reasons business owners hire a commercial registered agent is that they handle these issues for them.
Other reasons include:
- Greater privacy. You won’t need to disclose a business or personal address.
- More personal flexibility. You won’t need to stay available during standard business hours to accept service of process.
A commercial registered agent service takes over the administrative work and ensures compliance with New Mexico laws.
There are many different professional registered agent providers in New Mexico. Plan to spend between $50-$150 annually with them.
Trade name registration: N/A
Unlike many states, New Mexico doesn’t recognize trade names or “doing business as” (DBA) names.
In other states, a business can publicly go by a different name than its legal name for marketing purposes. New Mexico does not recognize such an option.
You can, however, trademark your New Mexico LLC name.
Trademarking your business name in New Mexico prevents other business structures from operating under the same name. The trademark application is very simple to complete.
Trademark fees start at $50, with $25 charged for the extra class.
Name reservation: $20
You can reserve an LLC name if you have a solid option in mind but are not ready to proceed with company registration. Name reservations prevent others from claiming your name while you contemplate.
LLC name cost is $20.
New Mexico allows you to reserve your company name for 120 days. Once the 120 days are up, you are not allowed to renew your reservation.
Use the NM business portal to run a name search and place a reservation.
Certified document copies: costs vary
You can request certified copies of any legal documents for your New Mexico LLC.
However, copy requests are not free.
The state charges for-profit business entities $25 for certification with an additional $1 for every page.
All document copies can be requested online via the state portal. Alternatively, these requests can be made in person or by mail.
Business permits and licenses: costs vary
New Mexico doesn’t have a general business license for LLCs.
As an LLC member, you only need a valid professional license to perform regulated services personally. Or you must hire employees that possess such a license.
For example, if you are a CPA, you will need a CPA license from the state of New Mexico. However, if you are a manager of an accounting firm and don’t provide financial services yourself, you don’t need to have a license.
On the other hand, if you operate a bar, you need to obtain a liquor license for your establishment.
New Mexico has over 48 different board agencies which oversee the occupational licenses for over 380 occupations. Again, you can place an inquiry or apply online via the business portal.
Costs for occupational licenses can vary but typically range between $50 and $200 annually.
Does New Mexico have an annual LLC fee?
No. New Mexico LLCs are not subject to any annual fees.
The state doesn’t have an annual report filing requirement and collects no renewal fees.
You’ll be subject to annual state tax reporting instead. New Mexico LLCs must file the Income and Information Return for Pass-Through Entities (PTE) to local business tax authorities each year.
The tax return is free to file.
Also, New Mexico doesn’t collect minimal annual taxes from LLCs who report taxes as a sole proprietorship or partnership. But if you switch to an S-Corporation or a C-Corporation, you’ll be subject to progressive franchise tax starting at $50 annually.
What taxes do LLCs pay in New Mexico?
Unless your LLC elects an S-corp or S-corp status, it won’t be subject to New Mexico annual franchise taxes.
Still, LLC owners may need to pay other state taxes such as employment and gross receipts taxes.
Employment taxes in the state range from 0.33% to 6.4%, depending on the type of business you run and the employee’s compensation rate.
The state’s gross receipts tax works similarly to a sales tax. The rate varies depending on the location, from 5.125% to 9.4375%.
Also, LLCs taxed as a C-Corporation will be subject to the state’s corporate income tax, ranging from 4.8% to 5.9%, in addition to federal taxes payable to the Internal Revenue Service (IRS).
Conclusion: How much does an LLC cost in New Mexico?
Overall, New Mexico is an affordable state to start an LLC. At a minimum, it will cost you $50 to start a small business. If you are an LLC based in another state (foreign entity), your initial filing fees will be $100.
Expect to pay extra if you want to hire a New Mexico registered agent service, file for a name reservation, or get a professional business license.
Tax-wise, LLCs reporting taxes as S-Corporation or C-Corporation are also subject to annual franchise taxes starting at $50. Gross receipts tax and state employer taxes also apply.
Thankfully, New Mexico is one of the few states that doesn’t charge an annual filing fee.
After forming your New Mexico business and beginning operations, you should not have any ongoing state filing fees!