Deal alert! Northwest will form your LLC for $39 (60% discount). See details.
To start an LLC in New Mexico, file Articles of Organization with the New Mexico Secretary of State. This costs $50 and takes 3 days for approval.
There are 6 steps to follow:
- Choose an LLC Name
- Select a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Get an EIN
- Register for a New Mexico Tax ID Number
If you want to form your LLC yourself, follow our free guide below.
If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(We recommend Northwest. We've reviewed all the top companies in the industry. And Northwest is our #1 pick for prices, customer support, and address privacy. Check out Northwest vs LegalZoom to learn more.)
How much does it cost to start an LLC in New Mexico?
It costs $50 to start an LLC in New Mexico. This is the fee to file the Articles of Organization – the document that creates an LLC.
To learn more about LLC Costs, see LLC Costs in New Mexico.
How long does it take to get an LLC in New Mexico?
If you file by mail, your LLC will be approved in 15-20 business days.
But if you file online, your LLC will be approved in 1-3 business days.
Please see How long does it take to get an LLC in New Mexico to check for any delays.
Here are the steps to forming an LLC in New Mexico
1. Search your LLC Name
Search your LLC Name to make sure it’s available in the state.
You need to do this because two businesses in the state can’t have the same name.
First, search your business name and compare it to existing businesses in the state. You can make sure the LLC Name you want is unique from existing businesses using the NM Secretary of State: Business Search.
Second, familiarize yourself with the state’s naming rules (so your LLC gets approved).
We’ll explain both in more detail here: New Mexico LLC Name.
2. Choose a Registered Agent
The next step is to choose a Registered Agent.
A New Mexico Registered Agent is a person or company who accepts legal mail and state notices on behalf of your New Mexico Limited Liability Company.
Who can be an LLC Registered Agent?
You have 3 options for who can be the Registered Agent:
- You
- A friend or family member
- A Registered Agent Service
The Registered Agent for your LLC must have a physical street address in New Mexico. PO Boxes aren’t allowed.
And the Registered Agent’s name and address will be listed on public records.
If you don’t have a physical street address in New Mexico, or you want more privacy, you can hire a Registered Agent Service for your LLC.
We recommend Northwest Registered Agent
Our favorite feature about Northwest is they’ll let you use their office address throughout your LLC filing. This way, you can keep your address off public records.
They’ll also scan any mail sent to your LLC and upload it to your online account.
Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
3. File LLC Articles of Organization
To start an LLC, you need to file the New Mexico Articles of Organization. This is a one-time filing to create your LLC.
It costs $50 to file your Articles of Organization online with the New Mexico Secretary of State.
If you want to file this yourself, see our step-by-step guide: New Mexico LLC Articles of Organization.
Or, you can hire a company to do it for you.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(Learn why Northwest is #1 in Northwest vs LegalZoom)
4. Create an Operating Agreement
An Operating Agreement serves as a “companion” document to the Articles of Organization.
The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.
Additionally, some banks require an Operating Agreement when you open an LLC bank account.
And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.
That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.
Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with any government agency (like the New Mexico Secretary of State or the IRS. Just keep a copy with your business records.
You can download a free template below.
Then, learn how to fill it out by watching our step-by-step New Mexico Operating Agreement video.
5. Get an EIN for your LLC
The next step is to get a New Mexico EIN Number from the IRS (Internal Revenue Service) for your LLC.
Note: An EIN Number is also called a Federal Tax Identification Number or Federal Employer Identification Number.
An EIN Number is used to:
- identify your LLC for tax purposes
- open a business bank account
- apply for business licenses and permits
How much does an EIN cost?
Getting an EIN Number from the IRS is completely free.
How long does it take to get an EIN?
If you apply online, it takes 15 minutes.
If you apply by mail or fax, it can take 1-3 months.
How can I get an EIN?
US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.
Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.
6. Register for a Tax ID Number in New Mexico
All LLCs must register with the Taxation & Revenue Department and get a New Mexico Tax Identification Number.
This state tax ID is required to do business in the state, and is different from your LLC’s federal EIN number.
You can register online through Taxpayer Access Point.
And you can read more about the Tax ID requirement from the New Mexico Taxation & Revenue Department: Who must register a business?
What do I do after my LLC is approved?
After your LLC is approved, there are some additional steps.
Open an LLC business bank account
You’ll want to open a business bank account for your LLC.
This makes accounting and record-keeping much easier for your business finances.
Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business entity finances separate from your personal finances.
Get business licenses and permits
Good news, New Mexico doesn’t have a state general business license.
However, depending on where your LLC is located, you may need a local business license or permit.
For example, if you want to start a daycare, you may need a business license from the city or county.
You can learn more on our New Mexico LLC Business License page.
File and pay taxes
LLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.
Said another way, the owners pay taxes for the LLC as a part of their personal tax returns.
How will my LLC be taxed?
By default, an LLC is taxed by the IRS based on the number of owners your LLC has:
- A Single-Member LLC is taxed like a Sole Proprietorship.
- A Multi-Member LLC is taxed like a Partnership.
Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.
Married Couples: Instead of having your LLC taxed as a Partnership, married couples can elect to be taxed as a Single-Member LLC (aka Qualified Joint Venture). This is allowed in New Mexico because it’s a community property state.
Besides federal taxes, there are also state and local income taxes – and gross receipts tax.
Learn more in New Mexico LLC Taxes.
How to Start an LLC in New Mexico FAQs
Can I start an LLC online in New Mexico?
Yes, you can file your LLC online in New Mexico. The Articles of Organization filing fee is $50.
When you start your LLC online, it will be approved 1-3 business days.
What are the benefits of an LLC?
The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.
This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.
This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.
Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.
And New Mexico state income taxes are very similar, since the state honors the federal tax structure of your LLC.
To learn more, please see How are LLCs taxed.
Is New Mexico a good state to start an LLC?
Whether New Mexico is a good state to start an LLC depends on where you live – and where you’re doing business.
Meaning, if you live in or do business in New Mexico, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.
For example, if you form an LLC in Nevada, but live in and conduct business in New Mexico, you’ll also need to register your Nevada LLC in New Mexico (and pay extra fees). And you’ll end up paying New Mexico taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you live in and conduct business in New Mexico, then yes, New Mexico is a good state to start a business. If you don’t live in and do business in New Mexico, then no, it isn’t a good state to start a business.
Real estate exception: If you’re purchasing real estate outside of New Mexico, you should form your LLC in the state where the property is located.
For more information, please see Best State to Form an LLC.
Do I need to file a New Mexico Annual Report?
LLCs don’t have to file an Annual Report or pay an annual fee in New Mexico.
Although most states have annual reports and fees, New Mexico is one of the few states that doesn’t require LLCs to file (or pay) an Annual Report.
For more information, see: New Mexico LLC Annual Report.
What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?
The main differences between Domestic LLCs, Foreign LLCs, and Professional LLCs are where they are formed and their business purpose.
A Domestic Limited Liability Company is an LLC that is formed in its “home state”, meaning, where the business owner lives and does business.
For example, if you live in and do business in New Mexico, you would form your Domestic LLC in New Mexico.
A Foreign Limited Liability Company is an LLC that is formed in a state that isn’t its home state. In this case, the term “foreign” simply means that the LLC is foreign to its “home state”.
For example, if you live in and do business in New Mexico, you would form your Domestic LLC in New Mexico. If you later expand into Arizona, you would register your existing New Mexico LLC as a Foreign LLC in Arizona.
Said another way, LLCs are created at the state-level.
And if you want your LLC to do business in two separate states, you have to form or register an LLC in both states.
This works by forming a Domestic LLC in your home state, and a Foreign LLC in the other state.
What is a PLLC?
A Professional Limited Liability Company (PLLC) is a type of LLC formed for the purpose of providing “professional services”.
In this case, “professional” refers to business types that require special permissions (like a license, registration, or certification from the state) in order to do business legally.
For example, architects, attorneys, and social work counselors, doctors, and veterinarians are required to register their businesses as PLLCs.
You can read more about PLLCs, their availability, and their stricter requirements in: What’s a Professional LLC?
And for more information on Foreign and Domestic LLCs, please see:
References
New Mexico LLC Act
NM.gov: Business in New Mexico
New Mexico Taxation & Revenue Department: Business Taxes
New Mexico Secretary of State: Statutes Governing Businesses in NM
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
New Mexico LLC Guide
Looking for an overview? See New Mexico LLC
Hi Matt, thanks for all the helpful content. If I live in Massachusetts but want to open an LLC in New Mexico, I would file for a foreign LLC? Also, I would be the owner and the only person working but would be providing remote consulting work for companies in various states (not any companies in New Mexico). Do I need to register in all of those states that I am providing the remote services to? Ie. a company in South Carolina and Virginia and Massachusetts (all while I live in Massachusetts).
Hi Sam, you’re welcome :) Correct, if you form an LLC in New Mexico, it should be registered as a Foreign LLC in Massachusetts (you could also consider just forming directly in Massachusetts). And great question, but good news – no, you don’t have to register in every state where your clients are. The easier way of thinking about it is that you’re required to register where you’re operating and running your business from. Hope that helps.
I am looking to create my first business, it’d be a 100% online business with no physical location. I am from Virginia but live abroad in a different country as an expat. I want to register my business in the US as the payment processor I want to use requires that since my ID is from USA.
I’ll be registering as LLC. I will be the owner of the business and have 0 employees – I will run the website by myself and probably hire helpdesk freelancers as my customer support to answer support tickets, if my website becomes popular where I can’t do it all myself.
I’ve been researching and my choices I like are between: New Mexico, Delaware, Wyoming, and Virginia(simply because its my home state so maybe it’d be simpler?). I would prefer less paperwork requirements and less overall fees. Privacy is important to me.
How the website would make money is people who sell on the website have to pay a subscription fee monthly to sell on the site.
Which state would you recommend in my situation? I would be needing to do everything online as I live abroad, so if I can pay a registered agent to do all the work for me, that’d be fine.
Hi Chad, if you want something private and simple, check out Ohio. It’s one of my favorite states. It’s really similar to New Mexico, in that’s it’s private and there’s no LLC Annual Report. (New Mexico is also totally fine too). Then later if you ended up doing business in a particular state (like if you moved back to Virginia), you can always register your LLC as a foreign LLC there. And you can do the whole thing online, from forming the LLC (you can do that yourself or you hire a company) and hiring a Registered Agent. If you want to hire someone, we recommend Northwest Registered Agent.
Hello friend, the truth is I do not know if you have information about it, I want to start a business in Amazon FBA and I am a non-resident, specifically from Ecuador, what worries me is to know if at the time of creating an LLC I should declare taxes in both countries or in only one? If you have this information I would appreciate it very much.
Hi Italo, we recommend speaking to an accountant that specializes in working with non-US residents.
Hi, Matt.
I’m a non-USA citizen. I’m planning to form an LLC but have a doubt.
As long as I’m not a USA citizen, doesn’t have assets in the US and do not live or hire employees in the US, my company is “Tax Free”.
I’m wondering, if I set up my company while I’m out of the US but eventually move temporarily to the US for academic purposes, for example studying 1-2 years there, does it changes the tax situation?
If the LLC is not a solo owner but a partnership, does it affects my partners tax situation?
Hi Wendy, whether or not non-US residents with US LLCs pay taxes is complicated. Meaning, it’s not a simple yes or no answer. You’ll need to speak with an accountant who specializes in working with non-US residents. And yes, your residency status will affect taxes. And yes, adding a partner could impact their taxes.
Hello –
I have about 20 real estate LLCs, for properties in the states of Florida, Pennsylvania and Virginia. Each LLC only holds that singular piece of real estate and a bank account to run the property, and the LLC is set up in the state the property is located in.
I am seeking anonymity and am wondering if it is better to:
– Set up an LLC for each in (let’s say) NM or WY and then register as foreign LLC in FL, PA and VA, or,
– set up one LLC in (let’s say) NM or WY and change the ownership of each LLC from myself to the newly formed LLC in NM or WY
For purposes of this question, I am disregarding costs and am focused solely on a “best practice” set-up. I am fine with either and do have RAs in each state currently.
Thank you,
CW
Hey CW, here’s what I’d do. Hire an asset protection attorney who also practices estate planning. Then I’d setup a Trust (or two Trusts, depending on your family and your personal situation). Then that Trust (or Trusts) form a Wyoming LLC holding company. Then transfer ownership of all existing LLCs from yourself to your Wyoming LLC holding company. This will also simplify your tax filings and set up your assets for the long-term. Hope that helps.
Hello Matt,
I went through all your guide how to form LLC at New Mexico and I finally did it! Thanks.
Steps I did:
1) Buy 1 year of NM registered agent service
2) Register at https://enterprise.sos.nm.gov/
3) Register LLC through Corporations > Domestic (NM) LLC Formation and follow your guide
4) Pay 50$ for filling and in two hours I had approved LLC company!
However I still do not feel comfortable beacuse it was quite easy! Opposite that experience, a formation an LLC alternative at Czech Republic is nightmare :D
I received “Certificate of Organization” from Secretary of State and “Statement of Acceptance of Appointment by Designated Successor Registered Agent” from my RA office earlier.
I am from Czech Republic and I am listed as member and director with home address at Czech Republic. Is it OK that I formed a domestic LLC and not foreign?
Is it enough to do business? Or should I requested some apostilled and notary signed official physical documents? Where to get them and how much does it cost to send it to the Czech republic?
I am going to request EIN via fax as well this or nex week.
Sorry for too many questions… It is simple maybe, but I am deformed by our jurisdiction ;)
Kind Regards
Navrat
Hey Navrat, you’re very welcome! I’m glad the LLC formation process was easy for you. Your LLC is complete. The state of New Mexico should have sent you a stamped and approved Articles of Organization and a Certificate of Organization.
Yes, a domestic New Mexico LLC was correct. A foreign LLC qualification is if you formed an LLC in another US state, and then want to register that LLC to do business in New Mexico. Foreign LLC doesn’t mean foreign-owned LLC. I know, it’s confusing ;)
Your next steps are to get an EIN and open an LLC bank account:
How non-US resident can get EIN for US LLC
How non-US resident can get LLC bank account for US LLC
If your LLC is a Single-Member LLC, you will need to file Form 5472 and Form 1120 every April (starting in 2022).
No, you don’t need documents apostilled. Hope that helps!
Hi Matt,
Amazing content! I checked the Northwest Registered Agents procedure to open a New Mexico LLC as a non-resident alien. Under “Management” they ask the following:
List Members/Managers With State?
1-List Members/Managers With State
2-Omit Members/Managers With State (*if you omit, it may be more difficult to open a bank account)
I am thinking about opening a bank account with Mercury and using Transferwise to transfer money to my personal bank account.
From your experience, do you think I may have trouble getting a bank account? I am a Canadian citizen, non-resident of Canada (based in Asia.)
Thank you so much
Martin
Hi Martin, thank you! You shouldn’t have any issues leaving that information off the Articles of Organization. This is because your LLC will have an Initial Resolution from Northwest showing you as the owner. And you’ll have a New Mexico LLC Operating Agreement also listing you as the owner. We recommend speaking with a Canadian accountant. Typically, Canadians have to file with the IRS and with the CRA, however, I’m not sure if that applies to your situation as a non-Canadian resident. Hope that helps.
Hello,
I have two businesses in Texas that I would like an LLC for. I would like to keep my name off public records and free from unwanted solicitations. So one of my friends told me to setup in New Mexico. Would this help me accomplish what I’m looking for? I’m the sole owner. Thanks in advance
Hi Kelly, if you form an LLC in New Mexico, but the LLC is doing business in Texas, you’ll need to register the New Mexico LLC as a foreign LLC in Texas (currently $750). So just forming a New Mexico LLC won’t accomplish what you want.
You could form a New Mexico LLC and have that LLC own and manage the Texas LLC. In this manner, you wouldn’t register a New Mexico LLC as a foreign LLC in Texas, but you’d first form a New Mexico LLC and then form a Texas LLC and list the New Mexico LLC as a Governing Person in the Texas LLC Certificate of Formation.
If you did that, you’d want to hire a Commercial Registered Agent in both New Mexico and Texas for address privacy. You’ll want to use a New Mexico Registered Agent company that’ll also let you use their address as the New Mexico LLC’s Principal Place of Business Address and Mailing Address. When you list the New Mexico LLC in the Texas LLC Certificate of Formation, you can use the New Mexico address. You’ll also want to hire a filing company to form both LLCs so they sign and use their name and address as the LLC Organizer. I know that may be a bit much to absorb at once, however, I hope that is helpful.
Hey Matt,
Man, your site is awesome, thank you for all of the infos.
I am looking at forming an Non-US owned LLC DE.
I have no intention of doing business with or from within the US, perhaps Amazon FBA at some point.
I do however have an interest in opening a Transferwise account for receiving in Euros (from fort EU)
From what I have read so far, New Mexico seems easy and affordable to setup and maintain in comparison to other states.
I also understood that to open a Transferwise account one needs to be more public, so is it necessary to file anonymously? or can it just be public?
And, with the description of my setup, would you say that NM is a good state to form an LLC in?
Thanks again!
Hi Feisal, New Mexico is a common state used by non-US residents. If there is no physical activity or no employees or dependent agents in a location, then you can pick any state you’d like. I’m not 100% sure how that will affect opening an account with TransferWise. You can send an email to TransferWise and ask. Tell them the state that you formed an LLC in doesn’t publicly list LLC Members (owners). But tell them you have a Statement of LLC Organizer and an LLC Operating Agreement that show you as the Member. And tell them you are the EIN Responsible Party for the EIN with the IRS and see what they say. Hope that helps :)
Thanks again, Matt.
I will report back here after receiving their answer.
Here is the reply from TransferWise:
———————————–
Hi Feisal,
Thanks for getting back to me.
We generally just check in the New Mexico state registry when verifying a business account.
Additional documentation may be required based on factors such as business structure or type of business, but our verification team would let you know what’s required once the account is setup if anything is needed.
As far as the message from your associate, we generally don’t require documentation stating the owners/directors. Usually we just need their full name, date of birth and country of residence.
If you have the new profile set up, just let me know the membership number or registered email and we can take a look.
Best Regards,
Keven
TransferWise Business Support
Hi Feisal, thank you for sharing. It sounds pretty straightforward. They don’t require the Members to publicly listed. I think it’s worth applying and sending over all documentation so their review team has more than necessary. Feel free to keep me posted on how things go.
Hi there,
I already found that New Mexico is one of 4 states that allow private/anonymous filing of an LLC, but how do I file anonymously/privately?
Do I just exclude my name from the organization papers and write only the Registered Agent’s Name And Address?
Also, once my New Mexico LLC is established, can I set up a new domestic CA and AZ LLCs, would my personal name and address also be kept private in those states if I set them up under my NM private/anonymous LLC?
Lastly, would the Northwest Registered Agent be able to handle this 3 LLC projects?
Hi Martin, there are actually 20+ states where Members aren’t required to be listed in the Articles of Organization (or Certificate of Organization or Certificate of Formation). Privacy comes down to what names and addresses do you want or not want listed that hit public record. So that includes the Registered Agent name, Registered Agent address, business address, Member information (if required), who signs as the LLC Organizer, and any other field in a form you may be concerned about.
If your New Mexico LLC will own the other domestic LLCs, it comes down to the information that is required in those states’ filing form (Articles of Organization, Certificate of Organization, or Certificate of Formation) as well as those states’ Annual Reports (or similar forms). The best strategy we recommend is to print out all the paperwork (LLC filing forms + Annual Report forms) for all the states you’re involved in and test-fill them out multiple times. Also pay attention to how an entity is required to sign (if your New Mexico LLC needs to sign on the domestic LLC’s forms). Northwest may be able to assist you, but we recommend corresponding with them over email to make sure you cover all the details. Hope that helps.
i live outside the USA and i need to open single member LLC for my online business what i need is an EIN number and real USA business address (not a post box address) does opening an LLC provide me and EIN number and a us Adress Thanks.
Hi Hafid, you’d need to figure out the address part before forming the LLC. Check out our New Mexico Registered Agent page for some tips. After the LLC is approved, then you’d apply for an EIN from the IRS. You can find instructions here: apply for LLC EIN without SSN. You’ll also want to be aware of IRS Form 5472 as well. Hope that helps!
Hi, I noticed on New Mexico, you don’t go into any detail on taxes, and state licensing, as you do for the other states, do they not Tax LLC’S in NM?
Just curious
Thanks
Hi Tommy, please look at the sidebar menu. We have lessons on business licenses as well as taxation. Thanks.
Hello Matt!
Lots of great information on this website!
Quick questions: Can someone incorporate a (somewhat anonymous) LLC in New Mexico and use it as a holding company to register an LLC in Massachusetts?
Does Registered Agent also serve as organizer in this case?
What would be the costs and is it recommended for a software business?
Do I have to file a tax return in NM even if income is generated outside the state?
Thanks!
Hi Christine! Yes, you can form a New Mexico LLC and have that be the owner of a Massachusetts LLC. If you’re hiring a filing company (such as Northwest Registered Agent), they’ll serve as both the Organizer and the Registered Agent. You should check with your accountant, but I do not think you’ll need to file a return in New Mexico. Hope that helps.
Hello Matt,
I already have a EIN which i registered with my name (no business name or anything of the sort) now if i incorporate a LLC can i use the same EIN or I have to apply for a new one?
Thanks in advance
Hi Amanda, while you can, you’ll need to mail a letter to the IRS to do so. However, we recommend getting a new EIN for the LLC as it keeps the records more organized and guarantees the correct EIN is associated with the correct LLC. Also, getting a new EIN is fairly easy and takes about 10-15 minutes. We have a lesson on it: EIN for LLC instructions. We also have some information on “converting” a Sole Proprietorship to an LLC, if helpful: Sole Proprietorship to LLC. Hope that helps!
Hello Matt!
You’re webpage is great! I do have a question, I am currently living in California, but I would like to create an LLC in New Mexico.
My question is the next: I am going to sell only through Amazon, so would it count doing business in California if I set up the FBA Amazon pick up in California rather in New Mexico?
Thanks!!
Hey Elena, thanks for the kind words! California is one of the most strict states regarding doing business. Even if you had an actual office and employees in New Mexico (and formed a New Mexico LLC), something as simple as making a phone call to your New Mexico office is considered legally doing business in California. And if you’re running this business from home in California, you’re definitely doing business in California. And California not only has these rules written into state corporate law, but also in Revenue and Taxation law. Meaning, not only can the Secretary of State require a Foreign LLC registration in California, but the California Franchise Tax can assess fines and penalties for illegally transacting business in the state and not paying the $800 annual franchise tax as well as not filing state taxes. On top of that, they’ll require back payment for all years which you didn’t pay the annual franchise tax (whether or not your out-of-state LLC was registered in California). Yes, California is expensive when it comes to LLCs, but that is the “cost of doing business” in California. It’ll still be far less expensive (not to mention the “cost” of stress and loss of productivity if you begin getting fines and penalties) to just form your LLC in California. Hope that helps.
I have a sole proprietorship in Nevada, however, I conduct no business there. I have outside sales reps who live and work in California, Arizona, and Oregon. I want to convert my sole proprietorship to an LLC. Can I form a single member LLC in New Mexico.
Hi John, you certainly can form an LLC in New Mexico, however, where do you reside, work, and run the business from? If you reside, work, and run the business from a state other than New Mexico, then you’re legally doing business in that state and you may want to consider forming your LLC there instead. If you form an LLC in New Mexico but are doing business in another state, you are required to register your New Mexico LLC as a Foreign LLC in that state. I recommend reading the following two articles: best state for my LLC and changing from Sole Proprietorship to LLC. Hope that helps.
This is my first year after creating a NM (IRA) LLC. Since the IRA LLC is a “disregarded entity” I have no federal tax. Do I still have to file the NM PTE and pay the $50 annual fee?
Hey Rich, we can’t comment on this. You’ll need to get in touch with an accountant to look at all the details of your LLC and your situation. Thanks for understanding.
Can you set up an LLC in New Mexico with a PO Box?
Hi Brittany, you cannot form a New Mexico LLC with just a PO Box. The Registered Agent address and the company’s principal place of business must be street addresses. The mailing address can be a PO Box. If you’re looking for privacy though, you can hire Northwest Registered Agent and use their address for privacy. They will allow you to use their address throughout the entire New Mexico Articles of Organization (and they’ll also serve as your Registered Agent of course). Hope that helps.
I live in Texas can I still register for an llc in New Mexico since it’s cheaper?
While no one will stop you from forming an LLC in New Mexico, if you’re doing business in Texas, you’ll be required to file as a Foreign LLC in Texas (which is expensive in Texas… more expensive than a regular Domestic LLC in Texas). If you don’t register in Texas (when you’re supposed to) the state has the power to impose penalties and fines. Take a look at Chapter 9 Foreign Entities of the Texas Business Organizations Code. Sections 9.051 and 9.052 explain the penalties of not registering as a Foreign LLC (if you’re supposed to register as a Foreign LLC). I’d also recommend reading our other article: whats the best state for my LLC. If you live and do business in Texas it’s often cheaper and easier to just form your LLC in Texas. Hope that helps.
I created a NM LLC through a company last year and they want to charge m $250 to renew it this year… but every resource I check says that one doesn’t have to pay an annual renewal fee for a NM LLC… is there something I’m missing? Thanks.
I have no idea what they’d be charging you for, since New Mexico LLCs don’t have an Annual Report. I’d ask them for details as to what their service entails. Feel free to followup if you’d like. I’m curious to hear what they mention.
Can a Non-Resident / Foreigner Form an LLC in New Mexico?
Can a Single Owner Form an LLC in New Mexico?
Hi Fazrul, yes, a non-resident/foreigner can form an LLC in New Mexico. Single-member LLCs are also allowed. Hope that helps. Let me know if you need anything else.
I would like to bring my Nevada LLC to New Mexico. How is that done?
Hi Connie, you’ll want to register your Nevada LLC as a foreign LLC in New Mexico. That is done by filing a “Foreign Limited Liability Company Application for Registration”. You can download the form on this page: New Mexico Secretary of State: Foreign LLC Certificate of Registration. Note, you don’t need the “Reservation of Name” form. Hope that helps!