Why Create a New Mexico LLC?
Within the State of New Mexico, business owners can take advantage of several business incentives made available by the New Mexico Economic Development Department, provided your LLC meets the specific criteria. For example, the High Wage Jobs Tax Credit is offered to businesses paying employees high wages. This gives employers the ability to apply for and receive a tax credit for each new high-wage economic-base job.
For entrepreneurs wanting to start a business in New Mexico, creating a New Mexico limited liability company (LLC) is generally the fastest and easiest way. With more simplified rules and regulations, an LLC is an ideal business entity for startups and small to medium-sized businesses, granting you the advantages and protections that larger New Mexico corporations benefit from.
Benefits of starting a New Mexico LLC:
Easily file your taxes and discover potential advantages for tax treatment
Create, manage, regulate, administer and stay in compliance easily
Protect your personal assets from your business liability and debts
Low cost to file ($50)
Learn more about the benefits of the LLC business structure.
In this guide, you’ll find information on naming your LLC, getting a Registered Agent, the fees you’ll need to pay, New Mexico business taxes and much more. We also cover your registration needs, filing your New Mexico LLC and how you'll correspond with the New Mexico Secretary of State (SOS).
How to Form an LLC in New Mexico Yourself in 6 Steps
Step 1 - Complete a New Mexico LLC Search and Choose a Unique Business Name
Step 2 - Provide an Official Business Address for Your LLC
Step 3 - Assign a Registered Agent
Step 4 - File Your Certificate of Formation with the New Mexico Secretary of State (SOS)
Step 5 - Get an Employer Identification Number (EIN) from the Internal Revenue Service
Step 6 - Create an Operating Agreement
Complete a New Mexico LLC Search and Choose a Unique Business Name
To start the process, you’ll need a name for your LLC that’s unique and stands out, but one that’s not used by any other business or formed entity in the state. If you’re having trouble coming up with a name, try using Incfile’s Business Name Generator to brainstorm ideas. You'll also need to follow a few naming rules, which you can read about in detail on the New Mexico Business Names page.
Once you’ve chosen a name, you’ll need to make sure it’s available in New Mexico. To find out whether another company in the state is already using your preferred business name, use our tool to do a business name search. You can also carry out a name search within the New Mexico Secretary of State's business portal via the corporations business search.
Provide an Official Business Address for Your LLC
Regardless of whether your business is in an office building, a home (if the company is run from a residence) or any other physical location, every New Mexico LLC must have a designated street address. It can be located outside the State of New Mexico, but it cannot be a P.O. Box.
Assign a Registered Agent
A Registered Agent is someone who receives official legal and tax correspondence and is responsible for filing reports with the New Mexico Secretary of State (SOS). Every LLC in New Mexico is required to have a Registered Agent.
This position can be filled by you, another manager in your business or a dedicated Registered Agent service. If your New Mexico Registered Agent is a person, they must have a physical street address in New Mexico and must be present during business hours to receive important documents on behalf of your business. In New Mexico, you appoint your Registered Agent when you file your Certificate of Formation and formally create your business.
All of Incfile’s packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also log in to our dashboard and easily view any document we've received on your behalf.
File Your Certificate of Formation with the New Mexico Secretary of State
Once you've gathered all the information for your New Mexico LLC, you’ll need to file your Certificate of Formation with the New Mexico SOS using their online business portal.
Your Certificate of Formation should be filed online via the New Mexico Secretary of State business portal. The New Mexico LLC filing fee is $50.
You only need to file your Certificate of Formation once. Most states require LLCs to file a periodic report of some type (usually annually or biennially); however, New Mexico does not.
What are the fees and requirements to form a business in New Mexico?
New Mexico LLCs are currently not required to file annual reports.
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You’ll need an EIN to identify your business to the IRS. You use this number when filing and paying taxes or when submitting payroll information and payments for your employees. An EIN is also required to open a business bank account. You can obtain one directly from the IRS, or you can have Incfile obtain one for you as part of the New Mexico LLC formation process.
Create an Operating Agreement
A kind of "instruction manual" that explains how you'll run your business, an LLC Operating Agreement details key components of your business — how decisions will be made, how the business is divided among members and what will happen if a member leaves the company.
Although some states require businesses to have this document in place, you're not legally required to have a New Mexico LLC Operating Agreement. We recommend having one for your business nonetheless.
Other New Mexico LLC Types
Professional Limited Liability Companies (PLLCs) are different from professional corporations in that they typically have licensing requirements applicable to certain fields, such as law and medicine. In order to form a PLLC, you may need a state license to practice.
Learn more about PLLC vs. LLC and which one is right for your business.
If your business is already operating in another state and expanding to New Mexico — or vice versa — you’ll need to form a Foreign LLC.
Learn more about New Mexico Foreign LLC registration.
Helpful Resources from the State of New Mexico
More Information in This Guide
You’ll find plenty more insight and guidance on the other pages of this guide, including:
How to search the New Mexico business registry and find the right name. Includes information on naming rules, fictitious names, reserving a New Mexico LLC name and more.
How to appoint, change and search for Registered Agents. Also includes the rules they’re required to follow.
How to understand the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details of Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.
How to understand the various taxes you will need to pay to the state and federal governments. Includes details of state taxes, such as sales and income, and federal taxes, such as income and self-employment.