LLC Cost in New Mexico | How Much Does It Cost to Start an LLC

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LLC Costs in New Mexico

Forming a Limited Liability Company (LLC) in New Mexico is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in New Mexico.

If you would like to know more about the New Mexico LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in New Mexico. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in New Mexico, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in New Mexico:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in New Mexico is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in New Mexico and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the New Mexico Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in New Mexico. Although not required by New Mexico law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in New Mexico and apply for business licenses in New Mexico related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in New Mexico through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in New Mexico, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in New Mexico.

Remember, starting an LLC in New Mexico involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in New Mexico that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in New Mexico

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in New Mexico can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your New Mexico business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees. 

Articles of Organization Filing Fee

The first step in forming an LLC in New Mexico is to file the New Mexico Articles of Organization with the New Mexico Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent. 

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $50. You can also file by mailing it to New Mexico Secretary of State, which is located at Business Services Division, 325 Don Gaspar, Suite 300 Santa Fe, NM 87501.

Recommended: Filing formation papers is easy and hassle-free if you hire a professional service. We recommend using –

LegalZoom – ($0 + State Fee)

Registered Agent Fee

An LLC in New Mexico must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in New Mexico typically charge an annual fee ranging from $50 – $150.

 In New Mexico, your Registered Agent must:

  • Be a resident of New Mexico or a business entity authorized to do business in the state.
  • Have a physical address in New Mexico (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. 

We reviewed some of the Best Registered Agent Services in New Mexico and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the New Mexico Secretary of State. 

In New Mexico, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the New Mexico Secretary of State to keep the name. 

The online name reservation fee is $20, while the mail name reservation fee is $20. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a New Mexico DBA (doing business as).

Recommended: Embark on your entrepreneurial journey confidently and affordably with LegalZoom’s DBA service, the beacon that guides businesses to credible branding and comprehensive compliance. Discover how effortless success can truly be!

LegalZoom – ($99 + Filling Fees)

Ongoing LLC Costs

After you know the initial costs of forming an LLC in New Mexico, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the New Mexico Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Registered Agent. 

In New Mexico, the Annual Report fee costs $0 because it is not mandatory which can be paid every some specific time (however, it is not mandatory to file it).

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by New Mexico on businesses, including LLCs and New Mexico Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the New Mexico‚Äôs specific tax regulations. 

New Mexico LLC Taxes To Be Paid

The State of New Mexico is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In New Mexico, the sales tax rate is 5.13%. 
  • State Income Tax: Considering other taxes in New Mexico, you should pay for the state income tax, with a rate of 4.8-7.6%. 
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 0.79% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your New Mexico business and the location of your operations, you may need to obtain permits and business licenses in New Mexico. The costs of these licenses and permits will vary based on your specific business and location. In New Mexico, the business license ranges from $50 – $300. However, research the requirements for your LLC in New Mexico and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in New Mexico. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your New Mexico LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in New Mexico that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. New Mexico offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within New Mexico. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost of forming an LLC in New Mexico?
To form an LLC in New Mexico, the cost is $50.
What is the fee for filing a New Mexico LLC annual report?
The fee for filing a New Mexico LLC annual report is $25.
What is the cost of reserving an LLC name in New Mexico?
To reserve an LLC name in New Mexico, the cost is $20.
What are the costs involved in converting a New Mexico LLC to another structure, like a corporation?
The costs involved in converting a New Mexico LLC to another structure vary, so it is recommended to speak with an attorney or accountant to determine the fees.
What is the cost of dissolving an LLC in New Mexico?
The cost of dissolving an LLC in New Mexico is $25.
What is the cost of reinstating an LLC in New Mexico that has been dissolved?
The cost of reinstating an LLC in New Mexico that has been dissolved is $200.
How much does it cost to obtain a business license in New Mexico?
The cost to obtain a business license in New Mexico varies depending on the type of business, location, and other factors.
How much does it cost to register an out-of-state LLC in New Mexico?
The cost to register an out-of-state LLC in New Mexico is $200.
Are there any additional taxes or fees associated with having an LLC in New Mexico?
Yes, additional taxes and fees may be required depending on your business activities and location in New Mexico.
What is the fee for getting a New Mexico tax ID number for an LLC?
There is no fee for getting a New Mexico tax ID number for an LLC.
Are there any other state filings required for an LLC in New Mexico?
Yes, there may be additional state filings required for an LLC in New Mexico, such as an annual report.
What is the cost of changing the registered agent for an LLC in New Mexico?
To change the registered agent for an LLC in New Mexico, the cost is $10.
Are there any legal or attorney fees associated with forming an LLC in New Mexico?
There may be legal or attorney fees associated with forming an LLC in New Mexico, but it is not required.
Is it necessary to use an attorney to form an LLC in New Mexico?
No, it is not necessary to use an attorney to form an LLC in New Mexico, but it may be helpful.
What is the cost of getting a New Mexico sales tax ID number for an LLC?
There is no additional cost for getting a New Mexico sales tax ID number for an LLC.
How long does it take to form an LLC in New Mexico?
It typically takes 1-3 business days to process LLC formation documents in New Mexico.
Are there any expedited processing options available for forming an LLC in New Mexico?
Yes, expedited processing is available for an additional fee in New Mexico.
What types of businesses can form an LLC in New Mexico?
Almost any type of business can form an LLC in New Mexico, except for banking and insurance companies.
How can I dissolve an LLC in New Mexico?
You can dissolve an LLC in New Mexico by filing Articles of Dissolution with the state.
Do New Mexico LLCs have to file annual reports with the state?
Yes, New Mexico LLCs are required to file annual reports with the state.
What is the penalty for not filing a New Mexico LLC annual report?
The penalty for not filing a New Mexico LLC annual report is $200.
How often are New Mexico LLC annual reports due?
New Mexico LLC annual reports are due every year on the anniversary date of the LLC’s formation.
How long is a New Mexico LLC formation document valid for?
A New Mexico LLC formation document is valid for 120 days.
What is the filing fee for amending the articles of organization for an LLC in New Mexico?
The filing fee for amending the articles of organization for an LLC in New Mexico is $50.
What is the cost of affixing a seal to LLC documents in New Mexico?
There is no specific cost for affixing a seal to LLC documents in New Mexico.
Can a New Mexico LLC be formed by a single member?
Yes, a New Mexico LLC can be formed by a single member.
What is the cost of publishing an LLC formation notice in a New Mexico newspaper?
The cost of publishing an LLC formation notice in a New Mexico newspaper varies depending on the publication.
What is the cost of adding a member to an LLC in New Mexico?
There is no specific cost for adding a member to an LLC in New Mexico.
What is the cost of changing the name of an LLC in New Mexico?
The cost of changing the name of an LLC in New Mexico is $20.
What is the cost to form an LLC in New Mexico?
The cost to form an LLC in New Mexico is $50.
What is required to form an LLC in New Mexico?
To form an LLC in New Mexico, you must file Articles of Organization with the New Mexico Secretary of State.
What is the cost to file an annual report for an LLC in New Mexico?
The cost to file an annual report for an LLC in New Mexico is $0.
Are there any additional taxes or fees associated with forming an LLC in New Mexico?
No, there are no additional taxes or fees associated with forming an LLC in New Mexico.
Is there a minimum number of members required to form an LLC in New Mexico?
No, there is no minimum number of members required to form an LLC in New Mexico.
Can an LLC in New Mexico have just one member?
Yes, an LLC in New Mexico can have just one member.
What is the difference between a domestic LLC and a foreign LLC in New Mexico?
A domestic LLC in New Mexico is one that is formed in the state, while a foreign LLC is one that is formed in another state but wants to do business in New Mexico.
What is a registered agent, and is one required for an LLC in New Mexico?
A registered agent is a person or entity who receives legal documents on behalf of your LLC, and one is required for all LLCs in New Mexico.
Can I be my own registered agent for my LLC in New Mexico?
Yes, you can be your own registered agent for your LLC in New Mexico.
How do I change the registered agent for my LLC in New Mexico?
To change the registered agent for your LLC in New Mexico, you must file a form with the New Mexico Secretary of State.
Does the name of my LLC need to include the words “Limited Liability Company” or “LLC” in New Mexico?
Yes, the name of your LLC must include either “Limited Liability Company” or “LLC” in New Mexico.
How do I check if a name for my LLC is available in New Mexico?
You can check if a name for your LLC is available in New Mexico by searching the New Mexico Secretary of State website.
Can two LLCs have the same name in New Mexico?
No, two LLCs cannot have the same name in New Mexico.
What is a trade name, and do I need one for my LLC in New Mexico?
A trade name is a name under which your LLC can do business, and you may need one if your LLC uses a name that is different than its legal name in New Mexico.
How do I obtain a tax ID number for my LLC in New Mexico?
You can obtain a tax ID number for your LLC in New Mexico by applying online with the IRS.
What are the annual state requirements for an LLC in New Mexico?
An LLC in New Mexico must file an annual report each year with the New Mexico Secretary of State.
What happens if I don’t file my annual report on time for my LLC in New Mexico?
If you don’t file your annual report on time for your LLC in New Mexico, there may be late fees and your LLC may fall into bad standing.
Can I convert my sole proprietorship to an LLC in New Mexico?
Yes, you can convert your sole proprietorship to an LLC in New Mexico.
Are there any advantages to forming an LLC in New Mexico?
Yes, there are several advantages to forming an LLC in New Mexico, including liability protection and tax flexibility.
How long does my LLC formation paperwork stay current in New Mexico?
Your LLC formation paperwork stays current in New Mexico until there is a change in ownership or structure of your LLC.
Can I use an online service to form my LLC in New Mexico?
Yes, you can use an online service to form your LLC in New Mexico.
Can I get a refund if I decide not to form my LLC after paying the filing fee in New Mexico?
No, you cannot get a refund if you decide not to form your LLC after paying the filing fee in New Mexico.
Does my LLC in New Mexico need its own bank account?
Yes, for accounting purposes, your LLC in New Mexico should have its own bank account separate from personal finances.
Does New Mexico tax LLCs differently than other business structures?
No, LLCs in New Mexico are generally taxed similarly to other business structures.
Do I need to worry about annual franchise taxes for my LLC in New Mexico?
No, there are no annual franchise taxes for LLCs in New Mexico.
Can I dissolve my LLC in New Mexico if I decide I no longer need it?
Yes, you can dissolve your LLC in New Mexico if you decide you no longer need it.
How soon after filing is an LLC in New Mexico considered active?
Your LLC in New Mexico is considered active as soon as the New Mexico Secretary of State processes your filing.

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Conclusion

Forming and maintaining an LLC in New Mexico involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in New Mexico.

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