Reinstate a Business in New Mexico | A Step-by-Step Guide

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Reinstate New Mexico Business

Running a business or forming an LLC in New Mexico can be a rewarding yet challenging experience. When operating a business, unforeseen circumstances may arise, leading to the suspension or dissolution of the entity. If your business has been suspended or dissolved in New Mexico, you do not need to worry. This guide will provide a step-by-step process to Reinstate your Business in New Mexico and get back on track.

Webinarcare Editorial Team will help you easily reinstate your New Mexico business. You must be guided by all the factors gathered in this article.

How to Reinstate a Business in New Mexico

Understanding Dissolution and Suspension

Before diving into the reinstatement process, it’s essential to understand the difference between dissolution and suspension.

Dissolution

Dissolution is the legal termination of a business entity. This can happen voluntarily by the owners or involuntarily by New Mexico due to non-compliance with state laws and regulations. When a business is dissolved, it must cease all operations and settle outstanding debts and liabilities.

Suspension

The state can suspend a business entity for various reasons, such as failing to file Annual Reports or paying taxes. When a business is suspended, it loses its right to conduct business within New Mexico, and the owners may be personally liable for any debts or liabilities incurred during the suspension period. Hiring a Registered Agent for your documents to be compliant is very important. You could check out the Best New Mexico Registered Agent Services in New Mexico.

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How to Reinstate a Business in New Mexico

In New Mexico, reinstating your business needs a lot of preparation, more specifically if it is located in Santa Fe. To be aware and prepared, we have gathered information on the steps to reinstate your New Mexico business. If it is manageable to Dissolve a Business in New Mexico, it is also bearable to reinstate your New Mexico business. Keep in mind that you should follow the mentioned steps below. 

Step 1: Determine the Reason for Suspension or Dissolution

The first step in reinstating your New Mexico business is determining why it is suspended or dissolved. This information can be found in the notice issued by New Mexico or by contacting the New Mexico Secretary of State. Common reasons for suspension or dissolution include:

  • Failure to file Annual Reports
  • Failure to pay taxes or fees
  • Failure to maintain a Registered Agent
  • Non-compliance with state laws and regulations

Step 2: Resolve Outstanding Issues

Once you have identified the reason for your business’s suspension or dissolution, you must resolve the outstanding issues. This may include:

  • Filing any missing New Mexico Annual Reports and paying associated fees. In New Mexico, the LLC Annual Reports costs $0 while the Corporation Annual Report costs $25.
  • Paying any outstanding taxes or fees
  • Appointing or updating your Registered Agent information. 
  • Resolving any non-compliance issues with state laws and regulations

Ensure that you keep records of all payments and documents submitted to the New Mexico Secretary of State, as you may need to provide proof of compliance during the reinstatement process. We recommend hiring the Best Registered Agent Services if you plan to reinstate your business. This will ensure that your documents are up to date.

It is suggested that you speak with a legal professional before you begin reinstating your New Mexico business. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC in New Mexico.

– WEBINARCARE EDITORIAL TEAM

Step 3: Obtain a Certificate of Good Standing

Certificate of Good Standing is a document issued by New Mexico that verifies that your business is in compliance with all state requirements and is authorized to conduct business within the state. Although obtaining a Certificate of Good Standing is not always required for reinstatement, it can be beneficial in demonstrating your business’s compliance and may expedite the reinstatement process.

To obtain a Certificate of Good Standing in New Mexico, you will need to:

Get and Submit the Form

The form is available on the New Mexico Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:
  • Visit the State Website: In New Mexico, they offer an online portal for business services, which includes the option to request a Certificate of Status.
  • Register an Account: You may need to create an account or log in to your existing account to access the application process.
  • Provide Required Information and Documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 
Paper Application Process:
  • Download and Complete the Appropriate Forms: Visit the New Mexico Secretary of State to download the required application forms for the Certificate of Good Standing. Complete the forms, ensuring all information is accurate and up-to-date.
  • Provide Required Documentation: In New Mexico, you may need to include copies of your registration documents, Articles of Organization, Annual Reports, or other supporting materials.
  • Mail or Deliver the Application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Business Services Division, 325 Don Gaspar, Suite 300 Santa Fe, NM 87501, along with the required fees.
Pay Any Associated Fees

The fees for obtaining a Certificate of Good Standing cost $25, vary depending on the type of business entity. Some states also offer expedited processing for an additional fee. Check the New Mexico Secretary of State website for the most up-to-date fee schedule. The Certificate of Good Standing’s processing time varies from state to state. Also, it depends on the expedited filing as well. It can take a few days to a few months to obtain the Certificate of Good Standing in New Mexico.

Provide Proof of Compliance

To prove compliance with state requirements, you must file Annual Reports and pay the necessary taxes.

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Step 4: Submit Reinstatement Application

Once you have resolved all outstanding issues and obtained a Certificate of Good Standing, you can submit your reinstatement application to the New Mexico’s Secretary of State. The reinstatement application process may vary depending on the state and the type of business entity (corporation, LLC, etc.).

In general, the reinstatement application process will require:

  • Completing a reinstatement application form is typically found on the New Mexico Secretary of State’s website.
  • Providing proof of compliance with state requirements, such as filing Annual Reports, paying taxes, and maintaining a Registered Agent.
  • Pay the reinstatement fee in New Mexico. The cost of the reinstatement fee amounts to $50. However, the cost will vary depending on the length of time your New Mexico business has been suspended or dissolved.

Step 5: Wait for Approval

After submitting your reinstatement application and all required documentation, you must await approval from the New Mexico’s Secretary of State. The processing time for reinstatement applications can vary depending on the New Mexico and the complexity of your case. Being patient and prepared to provide any additional information or documentation requested by New Mexico during this time is essential.

Step 6: Notify Creditors and Stakeholders

Once your business has been reinstated, you must notify creditors and stakeholders of your business’s renewed status. This may include:

  • Sending a formal letter to creditors and stakeholders informing them of the reinstatement.
  • Updating your New Mexico business’s website and social media accounts to reflect the reinstated status.
  • Informing any relevant licensing or regulatory agencies of the reinstatement.

Step 7: Resume Business Operations

After your New Mexico business has been reinstated and all relevant parties have been notified, you can resume your business operations. Be sure to maintain compliance with state laws and regulations moving forward to avoid future suspensions or dissolutions.

Reinstating or Creating a New Business?

Whether to reinstate a business or start a new one from scratch depends on several factors specific to your situation. Here are some points to consider when making your decision:

  • Costs: The costs of reinstating and starting a new business can vary significantly. Reinstating a business may involve paying outstanding taxes, fees, and penalties while starting a new business requires registration fees and potential legal costs. Compare both options’ costs to determine which is more financially viable.
  • Business History and Reputation: If your previous business has a strong reputation and established customer base, reinstating it may be more beneficial than starting from scratch. On the other hand, if your New Mexico business has a negative history or unresolved legal issues, start fresh with a new business.
  • Time and Effort: Reinstating a business can be a time-consuming process, as you need to resolve outstanding issues, submit a reinstatement application, and wait for approval. Starting a new New Mexico business may be faster, as you can register the business and begin operations relatively quickly. Consider which option is more time-efficient based on your situation.
  • Legal and Regulatory Compliance: If your previous New Mexico business was suspended or dissolved due to non-compliance with state laws and regulations, you should carefully evaluate whether you can maintain compliance if the business is reinstated. If you are confident in your ability to comply with requirements, reinstating the business might be a good option. However, starting a new New Mexico business might be a better choice if you still determine your ability to maintain compliance.

Ultimately, deciding to reinstate a business or start a new one from scratch depends on your circumstances and goals. Consider the abovementioned factors, consult with professionals such as New Mexico Business Attorneys and accountants, and evaluate which option best suits your needs and long-term business objectives.

FAQs

How do I reinstate my dormant business in New Mexico?
A filing is required with the New Mexico Secretary of State’s office along with payment of all fees and penalties owed.
Can I reinstate my New Mexico business online?
Yes, you can submit your reinstatement application to the Secretary of State’s office online.
What forms do I need to file to reinstate my business in New Mexico?
You will need to file a reinstatement application with the New Mexico Secretary of State’s office.
What is the cost of reinstating a business in New Mexico?
The cost varies depending on factors such as the type of business entity and the duration of the business’s inactivity.
Can I request expedited processing for my reinstatement application in New Mexico?
Yes, you can pay an extra fee to expedite your reinstatement application in New Mexico.
What happens if I do not reinstate my New Mexico business?
Your business will remain inactive, which may result in it being dissolved or administratively terminated.
Can I reinstate my New Mexico business if it has been administratively dissolved?
Yes, you can submit a reinstatement application and pay all outstanding fees and penalties owed to the state.
How long does it take to reinstate a business in New Mexico?
The processing time for a reinstatement application in New Mexico depends on various factors and may take several weeks.
Can I change my business name during the reinstatement process in New Mexico?
Yes, you can file a name change application with your reinstatement application in New Mexico.
Can I change my business entity type during the reinstatement process in New Mexico?
Yes, you can convert your business entity type during the reinstatement process in New Mexico.
What if my business has outstanding tax debts in New Mexico?
You must resolve any outstanding tax debts with the New Mexico Department of Taxation and Finance before reinstating your business.
Can I reinstate my New Mexico business if I am in bankruptcy proceedings?
You may need to receive approval from the bankruptcy court and other entities before reinstating your business in New Mexico.
How do I obtain a certificate of good standing for my reinstated New Mexico business?
You can request a certificate of good standing from the New Mexico Secretary of State’s office after your business has been reinstated.
Can I commence business operations immediately after reinstating my New Mexico business?
Yes, once your business has been reinstated, you can resume operations according to New Mexico laws and regulations.
What if my business jurisdiction was moved to another state during its inactive period?
You may need to file paperwork in the new state, dissolve your New Mexico entity, or continue to maintain your New Mexico business as a foreign entity.
How can I find out if my New Mexico business was administratively terminated?
You can search the New Mexico Secretary of State’s website or contact their office directly for information on the status of your business.
What if my New Mexico business was voluntarily dissolved?
You may need to register a new business entity in New Mexico and file all necessary paperwork, including obtaining a new tax ID number.
Do I need to file a business plan to reinstate my New Mexico business?
No, a business plan is not required for reinstatement of a business in New Mexico.
What is the deadline for filing a reinstatement application in New Mexico?
There is no specific deadline, but you should file as soon as possible to avoid any further penalties or dissolution of your business.
Can I use a registered agent service to file my reinstatement application for my New Mexico business?
Yes, a registered agent service can assist with the reinstatement process for a New Mexico business.
How do I notify the New Mexico Department of Workforce Solutions of my reinstated business?
You can contact the Department of Workforce Solutions directly or update your business information online.
What happens to my business contracts and agreements during the period of inactivity?
Depending on the terms of your agreements, they may become null and void and need to be renegotiated or updated upon the reinstatement of your business in New Mexico.
Can I obtain a reinstatement application form at the local New Mexico business registration office?
No, reinstatement application forms must be obtained directly from the New Mexico Secretary of State’s office.
Can I revoke my reinstatement application once submitted to the New Mexico Secretary of State’s office?
Typically, once a reinstatement application is submitted and processed, it cannot be revoked.
Can a suspended professional business reinstate it’s license with the New Mexico Secretary of State’s office?
Depending on the profession and license type, it may be necessary to fulfill additional requirements beyond a business reinstatement to regain licensure from the respective regulatory boards.
What if I have moved my primary business address to another state, yet wish to retrieve assets and legal documentation as part of my reinstatement process from New Mexico?
You may need to contact an attorney, or file as a foreign business entity in New Mexico to regain access to former assets or information.
Can I still use my original business name when I reinstate my New Mexico business?
Yes, in general, having an original name reservation may permit a conditional right to reserve the name under New Mexico LLC law.
What is the penalty for failing to file for my reinstatement within a permitted timeframe?
Filing penalties depend on a number of factors including the type of business entity, calculations of time passed, outstanding debts, and more. You should contact the New Mexico Secretary of State’s office or seek professional counsel, prior to conducting any reinstatement filings nearing or past significant timeframes.
How do I reinstate my New Mexico business?
To reinstate your New Mexico business, you need to file the appropriate form and pay any outstanding fees or penalties.
Can I reinstate a dissolved New Mexico limited liability company (LLC)?
Yes, you can reinstate a dissolved New Mexico LLC by filing Articles of Reinstatement with the New Mexico Secretary of State’s office.
What is the cost to reinstate a New Mexico business?
The cost to reinstate a New Mexico business will depend on the type of business entity and the amount of unpaid fees or penalties.
How quickly can my New Mexico business be reinstated?
The reinstatement process for a New Mexico business can typically take one to two weeks if all of the necessary paperwork and fees are submitted.
Do I need to file a new formation document to reinstate my New Mexico LLC?
No, you do not need to file a new formation document to reinstate your New Mexico LLC. Instead, you can file Articles of Reinstatement with the New Mexico Secretary of State’s office.
What is a Certificate of Authority in New Mexico?
A Certificate of Authority in New Mexico is a document that allows a foreign corporation or LLC to do business in the state.
Can a foreign LLC reinstate in New Mexico?
Yes, a foreign LLC can reinstate in New Mexico by filing the appropriate paperwork with the New Mexico Secretary of State’s office.
What is the penalty for late filing of annual reports in New Mexico?
The penalty for late filing of annual reports in New Mexico is $200.
What is dissolution by proclamation in New Mexico?
Dissolution by proclamation in New Mexico is the process by which a business entity is dissolved by the State Taxation and Revenue Department due to failure to pay taxes.
How do I obtain a New Mexico Taxation and Revenue Department Clearance Certificate?
You can obtain a New Mexico Taxation and Revenue Department Clearance Certificate by filing all of your required tax returns and paying any outstanding tax liabilities.
Can I reinstate Inactive status in New Mexico?
No, you cannot reinstate Inactive status in New Mexico. Instead, you have to file Articles of Reinstatement to get your business back in good standing.
What is the difference between reinstate, revive, and requalify a business in New Mexico?
Reinstatement is the process of restoring a business entity to good standing after it has been dissolved. Revival is the process of restoring a business entity to good standing after it has been administratively dissolved. Requalification is the process by which a foreign corporation or LLC obtains a Certificate of Authority to do business in New Mexico.
What are the qualifications necessary for reinstating a business in New Mexico?
The qualifications necessary for reinstating a business in New Mexico will depend on the type of business entity and the reason it was dissolved.
Can I use the New Mexico Secretary of State’s Online Services to reinstate my business?
Yes, you can use the New Mexico Secretary of State’s Online Services to reinstate your business, as long as you know your entity’s identification number and control number.
What is a reinstatement fee in New Mexico?
A reinstatement fee in New Mexico is a fee charged by the New Mexico Secretary of State’s office to process a reinstatement request.
Can I reinstate a New Mexico nonprofit corporation?
Yes, you can reinstate a New Mexico nonprofit corporation by filing the appropriate paperwork and paying any outstanding fees or penalties.
What is the difference between dissolution and revocation in New Mexico?
Dissolution refers to the process by which a business entity is voluntarily or involuntarily terminated, while revocation refers to the process by which the Secretary of State revokes a business entity’s authority to do business in the state.
Can I have the same EIN number while reinstating my New Mexico business?
Yes, you can have the same EIN number while reinstating your New Mexico business.
What happens if I don’t reinstate my New Mexico business?
If you don’t reinstate your New Mexico business, it may be subject to additional penalties and fees, and could ultimately be dissolved or revoked.
How can I check the status of my New Mexico business?
You can check the status of your New Mexico business by visiting the New Mexico Secretary of State’s website and performing a business entity search.
How do I change my business name while reinstating my New Mexico business?
You can change your business name while reinstating your New Mexico business by including a name change amendment with your reinstatement paperwork.
Can I change my New Mexico Registered Agent while reinstating my business?
Yes, you can change your New Mexico Registered Agent while reinstating your business by including a Registered Agent Change form with your reinstatement paperwork.
Can I reinstate my New Mexico business if it has been voluntarily dissolved?
Yes, you can reinstate your New Mexico business if it has been voluntarily dissolved, but you will need to file additional paperwork and pay any outstanding fees or penalties.
How do I file Articles of Reinstatement for my New Mexico LLC?
You can file Articles of Reinstatement for your New Mexico LLC by submitting the appropriate form with the New Mexico Secretary of State’s office and paying any associated fees.
Where do I get the Articles of Reinstatement form in New Mexico?
You can get the Articles of Reinstatement form in New Mexico on the New Mexico Secretary of State’s website.
In what situations does a New Mexico business need to reinstate itself?
A New Mexico business needs to reinstate itself when it has been dissolved, when its certificate of authority has been revoked or suspended, or when it has been declared inactive.
How will I know if my New Mexico business has been reinstated successfully?
You will know if your New Mexico business has been reinstated successfully when you receive a confirmation letter from the Secretary of State’s office confirming the reinstatement.
Are there any specific requirements for a foreign LLC to reinstate in New Mexico?
Yes, foreign LLCs usually need to file a certificate of good standing from their home state when reinstating in New Mexico.

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Conclusion

Reinstating a business in New Mexico can be complex and time-consuming. However, following the steps outlined in this guide, you can successfully reinstate your business and resume operations. Remember to stay diligent in maintaining compliance with state laws and regulations to avoid future issues and ensure the continued success of your business.

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